On November 22nd, APEC leaders vowed not to raise trade barriers over the next 12 months to the delight of PM Steven Harper. For the past few weeks, Harper has been discussing the issue with world leaders in an effort to keep free trade alive during the economic downturn. He’s also managed to sign a free trade agreement with Colombia just this week. Harper maintains the leading cause of the Great Depression was a result of bad decisions made by policy-makers, one of which was shutting down borders to trade in order to protect domestic jobs.

So how will the Obama administration react when in takes office in under 2 months time? It’s no secret that throughout the 2008 election campaign, Obama promised to restrict free trade agreements which he blames for the loss of US jobs due to outsourcing. He also mentioned renegotiating major trade agreements such as NAFTA. At the same time, currently serving President Bush advocates the exact opposite – keep borders open and allow free trade to continue.
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The Big Three

Just a month and a half after the financial sector in the United States received a $700 billion bailout package, the U.S. auto industry is begging for it to be their turn. U.S. auto executives are seeking $25 billion to save an industry on the brink of collapse. And Canada wants in. Industry Minister Tony Clement will be traveling to the United States to try and set the framework for a joint deal. But is another bailout plan using taxpayer’s money really justified? I’m not fully convinced.

There’s a lot of data that seems to indicate a bailout plan for the automotive industry is an absolute necessity. GM, Chrysler and Ford employ nearly 250,000 people in the United States, and affect nearly 4 million other jobs including suppliers, dealers and rental companies. Up to 70,000 of these people are Canadians, as automobile parts often cross back and forth through our border up to 7 times prior being installed into a vehicle. A filing for bankruptcy by any one of the Big Three could have catastrophic consequences for our already fragile economy. These facts seem to suggest that a bailout of the industry is crucial and an absolute must.
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