Memo to U.S.: Pay Attention to Canada

[Canuckistanian]

http://www.nytimes.com/2005/08/27/business/27nocera.html?pagewanted=2&adxnnl=1&adxnnlx=1125115430-hENRC8Iy1jI0tBbouw86qQ

I'M a lucky guy. Every summer I get to spend a month or more at a house my wife and I own on a wonderful lake in the Laurentian mountains of Quebec. For more than 25 years, I've been coming up here to this little slice of paradise, and in that time, I've come to know a lot of the people around the lake, many of whom, of course, are businesspeople. I've become friends with a Toronto hedge fund manager, a Montreal chemical company executive, an Ottawa lobbyist and a general counsel for a Canadian multinational, among many others.

Naturally, whenever we get together, the subject turns to business - Canadian business. We invariably hash over the latest trade frictions with the United States, which always garner front-page play in the Canadian papers and no play at all in the American papers. Although you probably haven't heard about it, there is an unusually nasty dispute going on now over softwood lumber, a major Canadian export that the United States believes is unfairly subsidized by the Canadian government.

Unfortunately for our side, the North American Free Trade Agreement arbitrators have consistently ruled in Canada's favor. After the latest - and supposedly final - such ruling a few weeks ago, the United States trade representative, Rob Portman, announced that the United States would ignore it and refuse to refund $5 billion in tariffs it has collected in the last five years. (The American position is that the ruling is pre-empted by a parallel proceeding at the World Trade Organization.)


Read the whole article. Fascinating.

[wli]

1. here comes a Canadian embargo n/t

[DemInDistress]

2. What other dirty dark secrets are being kept from

Americans.Good story thanks for sharing....

[Maple]

3. We need to stop trading mainly with the US

and raise our trade with the EU, China, India, Brazil....and every other country.

It is a totally stupid move to put all of our eggs in one basket.

Note to T Boone Pickens: it is not 'logistically impossible' to ship the oil to China...that's just wishful thinking on your part.

How do you think the oil from Saudi Arabia gets to the US? By pipeline? By aircraft? Levitation maybe?

[CHIMO]

4. Nice

Down home letter.

You should post it up front in GD for a wider audience.

[Spazito]

5. Excellent article, thanks for posting

Canadians are outraged at this final insult from the U.S. and are demanding the Canadian government stop talking and start acting NOW. The new U.S. Ambassador to Canada is not only an asshole, he is a stupid asshole and has fueled the outrage even further with his recent remarks that we have to stop being 'emotional' and, in essence, cave to their demands yet again. NO friggin way.

[justinsb]

6. There is a serious danger of Canada finally dropping NAFTA

which means guess what - higher gas prices. I come here to remind myself that there are good people in the states. I have to come here alot (and I'm originally from the states).

[CHIMO]

7. How

Would higher gas prices result from Canada withdrawing from NAFTA?

[justinsb]

8. Canada supplies about 18-20% of US oil

even if you assume that there is a stable international price for oil, there would, should NAFTA end, be calls for Canada to keep it's domestic oil supply in reserve - to lower our own prices and build up stockpiles. The withdrawal from the market of 18-20% of US supply would certainly cause an increase in price in the US I believe.

[CHIMO]

9. Ok

I thought that you meant an increase to Canadians.

I don't know if that scenario would actually play out. The existing investments have been made and one could be pretty sure that they would be allowed to continue to produce and meet their obligations. As energy is a provincial matter I would think that making existing production part of a federal "energy security" requirement would be pretty dicey. Although the scenario could arise if western crude is required to replace eastern imports. It then gets into renewable(read hydro) and non-renewable resources and who owns what, and why one is controlled and the other not.

I would think with the amount of proven non-conventional oil it would be hard to say there was a need to conserve. However, one weak link in the oil sands is the amount of water that is required for production.