The EU economic plan will leave it in tatters.
EU
The Canada-EU free trade deal flies below the radar
In coming days, Canadian and European officials will intensify negotiations on a new trade agreement most Canadians have never heard of. The Canada-European Union Comprehensive Economic and Trade Agreement is by far the largest free-trade deal this country has ever undertaken.
If it goes through, CETA will open up the rules, standards and public spending priorities of provinces and municipalities to direct competition and challenge from European corporations. Ottawa refuses to even discuss the environmental implications, but a recent trade sustainability impact assessment commissioned by the European Commission has sounded alarms in several areas.
Harper's bank tax rejection harms international relations
In the midst of a world financial crisis, Prime Minister Stephen Harper has mounted an international campaign to thwart the efforts of European leaders to force major banks to take out -- and pay for -- compulsory bad loan insurance. The insurance principle that lies behind the European proposal is that in bad times, banks less affected by crisis, should shoulder responsibility along with those in trouble. Harper has decided to use his position as host of June's G8/G20 meetings to oppose prudent measures to restore some order to out-of-control banking practices. The prime minister's campaign is designed to sabotage proposals made by conservative leaders from France and Germany.
Europe trashed: The coming austerity implosion is a scary precedent
World leaders are doing their best to provoke a global economic downturn of epic proportions. Of course, it is politically hazardous for leaders to admit this. Democratic accountability can be inconvenient when leaders are obsessed with imposing economic austerity policies.
The new Euro area agreement provides political cover for these unpopular measures. To appease financial markets, European leaders have submitted to the "new fiscal rule," a pledge to keep government budgets balanced or in surplus.
This new fiscal rule will have the force of law. Countries are required to enshrine this new fiscal rule in their national level constitutions.
What CETA would mean for Canada's auto industry
Canadian free trade negotiators are going all-out to get a deal with the EU on a new free trade agreement. The Harper government wants a deal badly for largely symbolic and ideological purposes, to show that the free trade agenda is back on track under this "stable majority government." Many valid concerns have been raised about the implications of a deal on pharmaceutical costs, on public procurement, and more. What would a Canada-EU deal mean for the auto industry? Here are a few summary points:
- Canada's auto industry would be especially hard hit by a free trade deal with Europe.
- Europe sells billions of dollars of auto products in Canada, but buys virtually nothing back from the Canadian auto industry.
May 1, 2011 |
A survey of federal political parties shows significant differences of opinion, and in some cases strong concerns with the former Conservative government's free trade negotiations with the EU.
