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Columnists

Canada and the new protectionism

When the world plunged into recession in 2008, G20 leaders ostentatiously pledged not to repeat the errors of the 1930s. To hasten economic recovery, they would avoid protectionism and keep trade flowing. Canada's government has been among the loudest voices in this free trade chorus.

This is a gross misreading of actual history. World trade collapsed in the 1930s because of collapsing consumer demand, not protectionism; competitive tariffs were a response to that implosion, not its cause. For the same reason, world trade plunged 12 per cent last year, despite the G20 promises.

Columnists

Canadian cultural nationalism lives

Consider this a delayed obituary for McClelland & Stewart, "The Canadian Publishers," which effectively expired this month after a lengthy decline in the care of several owners and convoluted arrangements. They waited till the firm's 100th anniversary had passed -- a full week. Our question is: does this also mark the demise of Canadian cultural nationalism?

Columnists

How the economic crisis began with free trade

Even now, as we speak, 153 august trade ministers from the nations of the World Trade Organization are gathered in Geneva to chant the ancient spells for warding off economic disaster. Beware of beggar thy neighbour (Woooo). Firmly resist protectionism in all its forms (Woooo). Canada's own Ed Fast will join a lively "anti-protectionism" news conference.

This is the time-honoured response to crises: hoary phrases meant to inject wisdom gained from earlier crises. It's the economic equivalent of fighting the last war to avoid thinking about the one now raging. No, wait: it's more like droning a few clichés about the last war to avoid thinking about it too.

Columnists

The invisible impact of 'Buy American'

It's a clear case of déjà vu all over again. Back in the '80s, Brian Mulroney raised the spectre of U.S. protectionism, then set out to win guaranteed access for our exports. He didn't succeed: We got a "dispute panel" system, instead, and even that doesn't work. But his government was publicly committed to guaranteed access, so Mr. Mulroney put a brave face on his 1988 deal --spinning it as essential insurance and worth the steep price (control over our energy).

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