PSCI 3606 Lecture Notes - Lecture 7: National Treatment, International Trade, Free Trade
11 Jun 2018
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November 27, 2017
Perspectives on Canadian trade and investment policy.
International trade is not really international
• Securing access to international markets is critical to Canada’s interests
• International negotiations are as much about domestics politics and producer interests.
• Its about who gets the jobs, and how much market competition domestic producers must
face the pricing of goods.
- Tariffs are not a critical source of government revenue and are more about protecting
domestic producers.
Trade agreements are not just about “trade”
• Trade is as much about shaping regularity.
• Free trade is misnormer: trade deals are really about negotiating the exceptions to free
trade.
- Level of domestics producers protection rules of origin and national content req
(autos).
• Other issues can dominate discourse
- Intellectual property protection, investment and dispute settlement, labor standards
and mobility national treatment of service sector, government procurement,
competition policy, regulatory standards and cooperation
Trade agreements increasingly reflect information and service based economies.
• Canada’s good trade in 2016
- Exports: 512 billion
- Imports: 547 billions
• Canada’s services trade in 2016
- Exports: 107 billion (+4.8%)
- Imports: 129 billion (+2.0%)
• Global exports in 2016
- Goods: 15.5 trillion USD (-3.3)
- Services: 4.8 trillion USD (+0.1%)
• Preferential (PTAs) vs multilateralism
• Technology/ e- commerce chapter are an area for future development.
Market power is important, but so is expertise.
• For negotiations, markets power (market size) is an important source of leverage.
• But small players can punch above their weight when they are highly organized and
develop strong regulatory capacity.
- The Us leverage its vast market to secure advantages, but there are limits to its power.
On a range of issues, Canada is a highly effective negotiator.
Don’t believe everything you read
• If its in the news, someone likely wanted you to read it, try to think about who and why.
- Statements in the media are often negotiating positions.
• Trade publications (inside US trade) are sometimes better than conventional media.
• NAFTA 2.0 outcomes: don’t believe anyone who claims to know.
Agreements don’t end with the signature
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
International trade is not really international: securing access to international markets is critical to canada"s interests. International negotiations are as much about domestics politics and producer interests. Its about who gets the jobs, and how much market competition domestic producers must face the pricing of goods. Tariffs are not a critical source of government revenue and are more about protecting domestic producers. Trade agreements are not just about trade : trade is as much about shaping regularity, free trade is misnormer: trade deals are really about negotiating the exceptions to free trade. Level of domestics producers protection rules of origin and national content req (autos): other issues can dominate discourse. Intellectual property protection, investment and dispute settlement, labor standards and mobility national treatment of service sector, government procurement, competition policy, regulatory standards and cooperation. Trade agreements increasingly reflect information and service based economies: canada"s good trade in 2016. Imports: 547 billions: canada"s services trade in 2016.
