Another Protectionist Stick in the Eye
Roy Tyler Whyte
CDM
July 9, 2003
Word has come down from the U.S. House Armed Services Committee that Canadian made military equipment will be added to a protectionist bill being added to the Pentagon's $400 billion US defense authorization bill.
What does this mean for Canada? What it translates into is another slap in the face by our ‘free trade’ partner. The protectionist bill would require American companies to buy "critical" components only from U.S. companies. Just what ‘critical’ means is still up in the air. As well the bill goes on to strip Canada of its official status as a domestic supplier to the U.S. – on top of quashing our membership in the U.S. National Technology and Industrial Base.
Economically it means the loss of some $1 billion in sales of military hardware. While many Canadians may disagree with the sale of weapons – it does manifest itself in the possible loss of tens of thousands of jobs here in Canada. As well Americans partly or wholly own many of the arms manufactures in Canada. How long will it be before they close up shop all together? How will that affect Canada’s ability to manufacture weapons for self-protection and use by our own military? Surely there will be negative blowback in our industries and those lives tied to it.
Canada’s arms industry is larger than many think. The Canadian Defense Industries Association states that the defense industry revenues grew 35% between 1998 and 2000 – far outpacing the rest of the economy – which grew only 3%! In 2000 our military exports topped $4 billion dollars, with a whopping 17% increase to the U.S. between 1998 and 2000. Furthermore our exports elsewhere rose an amazing 75%!
Some are citing more American sour grapes in the decision to tag the Canadian exports to the bill. Canadian-American relations seem to be at the root of the decision. So, what else will be connected to the disputes and put before protectionist measures? Maybe some return protectionism on our part will get their attention. How about tagging natural gas to the dispute? After all we are running out and through NAFTA we have to continue shipping a full two-thirds of production to America whether we like it or not! Its high time we put our foot down and show we are NOT doormats, nor just a colony of the U.S. that will take our lumps when dished out.
Canada should also tie any decision made by America over this bill to the National Missile Defense scheme. Why should we break our backs and bank accounts to protect them when they so willingly stick us in the eye? If Canadian military exports mean so little than surely they can live without our input and cold hard cash into their vaunted scheme.
Roy Tyler Whyte
CDM
July 9, 2003
Word has come down from the U.S. House Armed Services Committee that Canadian made military equipment will be added to a protectionist bill being added to the Pentagon's $400 billion US defense authorization bill.
What does this mean for Canada? What it translates into is another slap in the face by our ‘free trade’ partner. The protectionist bill would require American companies to buy "critical" components only from U.S. companies. Just what ‘critical’ means is still up in the air. As well the bill goes on to strip Canada of its official status as a domestic supplier to the U.S. – on top of quashing our membership in the U.S. National Technology and Industrial Base.
Economically it means the loss of some $1 billion in sales of military hardware. While many Canadians may disagree with the sale of weapons – it does manifest itself in the possible loss of tens of thousands of jobs here in Canada. As well Americans partly or wholly own many of the arms manufactures in Canada. How long will it be before they close up shop all together? How will that affect Canada’s ability to manufacture weapons for self-protection and use by our own military? Surely there will be negative blowback in our industries and those lives tied to it.
Canada’s arms industry is larger than many think. The Canadian Defense Industries Association states that the defense industry revenues grew 35% between 1998 and 2000 – far outpacing the rest of the economy – which grew only 3%! In 2000 our military exports topped $4 billion dollars, with a whopping 17% increase to the U.S. between 1998 and 2000. Furthermore our exports elsewhere rose an amazing 75%!
Some are citing more American sour grapes in the decision to tag the Canadian exports to the bill. Canadian-American relations seem to be at the root of the decision. So, what else will be connected to the disputes and put before protectionist measures? Maybe some return protectionism on our part will get their attention. How about tagging natural gas to the dispute? After all we are running out and through NAFTA we have to continue shipping a full two-thirds of production to America whether we like it or not! Its high time we put our foot down and show we are NOT doormats, nor just a colony of the U.S. that will take our lumps when dished out.
Canada should also tie any decision made by America over this bill to the National Missile Defense scheme. Why should we break our backs and bank accounts to protect them when they so willingly stick us in the eye? If Canadian military exports mean so little than surely they can live without our input and cold hard cash into their vaunted scheme.
