Free Trade - Good or Bad?


mentalfloss
#1
Should we be getting into free trade deals with other nations?

Does free trade produce truly beneficial results between two nations that have significantly different economies?
 
petros
#2
Different economies trading utilizes the diversity of the differences. We have the raw goods needed to supply every economy on the planet. That is a huge bonus.
 
mentalfloss
#3
Quote: Originally Posted by petrosView Post

Different economies trading utilizes the diversity of the differences. We have the raw goods needed to supply every economy on the planet. That is a huge bonus.

Yes, but what if the demand is so strong that it begins to deplete our resources?
 
EagleSmack
+1
#4  Top Rated Post
Quote: Originally Posted by mentalflossView Post

Yes, but what if the demand is so strong that it begins to deplete our resources?

Such as what? Do you think Canada would sell themselves into starvation, thirst, or run their factories dry?

What you're saying sounds a little apocalyptic.
 
petros
#5
Quote: Originally Posted by mentalflossView Post

Yes, but what if the demand is so strong that it begins to deplete our resources?

Deplete our resourcces? You're kidding right?
 
JLM
+1
#6
Good
 
mentalfloss
#7
Quote: Originally Posted by EagleSmackView Post

Such as what? Do you think Canada would sell themselves into starvation, thirst, or run their factories dry?

What you're saying sounds a little apocalyptic.

Well, no, not starvation.

But when you begin to deplete resources, the cost of those resources goes up.
 
petros
#8
Which resources are even close to depletion?
 
mentalfloss
#9
Quote: Originally Posted by petrosView Post

Which resources are even close to depletion?

Okay, reduction, I mean. As we have less resources, the cost of those resources go up.
 
EagleSmack
#10
Quote: Originally Posted by mentalflossView Post

Well, no, not starvation.

But when you begin to deplete resources, the cost of those resources goes up.

True, but cost of resources also go up due to demand... which is more likely rather than depletion.
 
captain morgan
#11
Quote: Originally Posted by EagleSmackView Post

Such as what? Do you think Canada would sell themselves into starvation, thirst, or run their factories dry?

What you're saying sounds a little apocalyptic.

The next logical question relates to 'saving' those resources for the future.... In the end, you still have the same issues,, only the timing is different.
 
petros
#12
Quote: Originally Posted by mentalflossView Post

Okay, reduction, I mean. As we have less resources, the cost of those resources go up.

We've only scratched the surface of our resources.
 
captain morgan
#13
Quote: Originally Posted by EagleSmackView Post

True, but cost of resources also go up due to demand... which is more likely rather than depletion.

... And that cost increase has a direct benefit to the region that holds the resource.
 
EagleSmack
#14
Quote: Originally Posted by captain morganView Post

... And that cost increase has a direct benefit to the region that holds the resource.

Precisely

Should we close this thread now? lol
 
petros
#15
Not developing our massive resources keeps prices high.
 
captain morgan
#16
Quote: Originally Posted by EagleSmackView Post

Precisely

Should we close this thread now? lol


There is a segment of the Canadian population that is vehemently opposed to Free Trade, it's always a bad deal.

Problem is that these folks assume that the same benefits will always be there resulting from Free Trade, but don't like the results of reciprocating.

That said, maybe it is time to close the thread.
 
mentalfloss
#17
I'm hearing that the cost of gas will go up as we export more. At least that's what I'm hearing.

I'm no econ expert, that's why I'm deferring to the experts.
 
petros
#18
It's a global economy these days. Self-segregation would destroy our future.

Quote: Originally Posted by mentalflossView Post

I'm hearing that the cost of gas will go up as we export more. At least that's what I'm hearing.

I'm no econ expert, that's why I'm deferring to the experts.

How so?
 
JLM
#19
99.99% of the time least red tape is the best policy!
 
EagleSmack
#20
Quote: Originally Posted by captain morganView Post

There is a segment of the Canadian population that is vehemently opposed to Free Trade, it's always a bad deal.

Problem is that these folks assume that the same benefits will always be there resulting from Free Trade, but don't like the results of reciprocating.

That said, maybe it is time to close the thread.

Canada is a nation with enormous resources and a relatively low population. Does this segment of the population simply want to hoard the resources and not trade or sell?
 
petros
#21
They don't know how rich they are.
 
mentalfloss
#22
Quote: Originally Posted by petrosView Post

How so?

Like I said, I'm no expert.

I can dig up some material on it. But I personally don't mind a combination of free trade with some regulations that protect important aspects of each country's economy.

No regulation is stupid.
 
EagleSmack
#23
Quote: Originally Posted by mentalflossView Post

I'm hearing that the cost of gas will go up as we export more. At least that's what I'm hearing.

I'm no econ expert, that's why I'm deferring to the experts.

I would imagine the cost of gas will always go up regardless how much you export. I've yet to see prices drop as more fields are discovered. Oil companies will never drop prices too much so they can turn a bigger profit.
 
petros
+1
#24
I don't understand what you mean by "regulate"? Is that the same as what we've been doing all along by not taking advantage of our vast wealth?
 
mentalfloss
#25
Quote: Originally Posted by EagleSmackView Post

I would imagine the cost of gas will always go up regardless how much you export. I've yet to see prices drop as more fields are discovered. Oil companies will never drop prices too much so they can turn a bigger profit.

Right. Well this is something that we cannot successfully answer ourselves on an anecdotal basis alone. We should try and get economists and other profs who constantly analyze these sorts of things to help guide us to a truthful consensus.

While I have my reservations on the environment and the energy sector, this thread is to discuss the positive and negative aspects of free trade, as well as the true meaning of the term. It should be noted that all trade agreements (even NAFTA) have some regulatory aspects to them, so I'm not sure if free trade is truly significant anyway.
Last edited by mentalfloss; Feb 13th, 2012 at 11:22 AM..
 
petros
#26
Under NAFTA or any other agreement we've signed is flooding the market copacetic?
 
mentalfloss
#27
Quote: Originally Posted by petrosView Post

I don't understand what you mean by "regulate"? Is that the same as what we've been doing all along by not taking advantage of our vast wealth?

Well, for instance, in the latest agreement we made with China on investments, it was primarily a regulatory one. FIPA - Foreign Investment Protection Agreement ensures an equal leveling field in terms of investments. This is not a "free trade" concept, it's a regulatory one...


The Canadian side is hopeful that the FIPA with China will promote a better equilibrium in the balance of trade, as China has become Canada's second-most important trading partner after the US. In 2010, Canada's trade deficit with China was US$29.7 billion out of a total trade turnover (imports plus exports) of $54.7 billion.

The FIPA is not a free-trade agreement - Canada has FIPAs in force with two dozen countries and is negotiating with nearly a dozen others - but the two sides this week made diplomatic noises about their interest in exploring the feasibility of one. Given the nearly two decades required to negotiate the FIPA, one should not anticipate a free-trade agreement anytime soon.

The FIPA is intended to give Canadian companies more protection against discriminatory and arbitrary practices and stabilize, or at least make predictable, their business environment in China. In practice, it is hoped that it will facilitate the implantation into China's economy of small- and medium-sized Canadian businesses that cannot afford to take big risks. The FIPA will not supersede Canada's existing foreign investment regime, so acquisitions and investments by Chinese firms in Canada will still be subject to review by Ottawa.


Asia Times Online :: China-Canada boost ties (external - login to view)
 
petros
#28
This will go a long way for our 20% stake in GM.
 
mentalfloss
#29
Essentially, the market was "freer" before this agreement between Canada and China. China was free to take over some petrol companies in Canada, but we had less direct influence on them. In a free market, no one cares about the sovereignty that one state has.

Similarly, with the U.S., it seems like just as some of our most successful business reach their peak, they are bought out by American companies and that business goes south.

I'm sure we have a FIPA with the U.S., but the free trade aspect still came with obvious detriments like the above.
 
petros
#30
Over Canada's 145 years, which public funded investments haven't been sold off to private interests?
 

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