Hmm, yes, Free Trade was on the Tory platform.. here's a link to some of the hoopla..
http://archives.cbc.ca/economy_business/trade_agreements/topics/536/ for the history buff, for the music lover, there's even a clip of the Mulroney and Reagan, When Irish Eyes Are Smiling session.. and a debate with Mordecai Richler, where he takes the position that Free Trade won't hurt Canadian culture.. notable Richler quote...
"If I were trying to market this deal for the Tories I would run full page advertisements in newspapers throughout the other nine provinces. That ad would say "YOU CAN HELP SCREW ONTARIO. SUPPORT FREE TRADE." Of course the subject of the debate was culture, not ecomomy.. but he was right..
Whether the initial free trade agreement was good or not for Canada, isn't really the point I was trying to make though...
The point is what has happened with it since.. arguably the original intent..
Within a year, the US negotiated a similar deal with Mexico, and Canada pretty much had to follow. Goodbye Black and Decker.. Goodbye Westinghouse...
And subsequently, the doors have been opened to many countries, with a resulting influx of goods from abroad, more closures, and a reported diminishing of manufacturing across the country of 20 percent. It is in fact higher if gross sales from oil is not taken into account.
If you want to measure the long term effect of this policy, GO INTO ANY STORE YOU CHOOSE AND TRY TO FIND A SMALL APPLIANCE MADE IN CANADA.
You will find Mexico on some, but more China, Taiwan..
The fact of the matter is.. opening our doors to tariff free trade with economies around the world has resulted in a flood of products from abroad... and a damburst of bankruptcies and companies moving abroad to take advantage of cheap labour, in order to compete at all in our market.
We're pretty well in it now with the US, and were before free trade in fact.. we do run a surplus with our neighbour in gross sales [again oil.. but it's there.]
The aspect of free trade that needs to be addressed is worldwide trade, goods coming from outside the North American corridor. And frankly the US is in the same boat, and are feeling the pinch as well.
It is time our politicians put a tariff on goods from outside North America. The tariff should be equal to the tax that would be applicable to an equivalent item manufactured in Canada, and monies from the tax diverted into restarting industry within the country.