FLOUTING FREE TRADE
‘ NAFTA is not some thing to be ignored when it suits narrow domestic interests’
OTTAWA • Prime Minister Paul Martin yesterday rebuked the United States for flouting free trade rules when it serves its interests, saying Canada is now looking to Asia for new trading opportunities.
“NAFTA is not something to be ignored when it suits narrow domestic interests,” Mr. Martin said, citing the Americans’ decision to ignore the recent NAFTA ruling against trade tariffs on Canadian softwood.
“It is so counterproductive when one nation decides to flout the rules. Free and fair trade depends on a dispute settlement procedure that is respected by all parties.
“Unfortunately, the reaction of the U.S. in the face of the latest NAFTA panel decision on softwood lumber mocks that basic principle and in so doing sends the wrong message to the world.”
Mr. Martin warned that in light of trade tensions with the U.S., Canada intends to focus more on new opportunities in the burgeoning Asian market, specifically India and China, saying those two countries offer tremendous potential for a small domestic market such as Canada.
“Surely we have learned how important it is for Canada to develop other [trading] options as well —and with a rising Asia, the opportunity to do just that is greater than it’s been at any time since the end of the Second World War.”
The Prime Minister spoke at length about the need for the government to address the rise of China and India, ensuring Canadians are able to compete and sell its products to these countries. Last week, Mr. Martin made a pitch to visiting Chinese President Hu Jintao to sell more Canadian softwood to China.
Mr. Martin made the trade comments in an hour-long, throne speech-style address to some 250 senior civil servants a week before the fall parliamentary session begins.
Mr. Martin attempted to link the many disparate initiatives his government has undertaken since coming to power in December, 2003, under the umbrella of one comprehensive plan that will ensure Canada succeeds in the coming decades.
Mr. Martin also spoke of Canada’s changing demographics. In the next 10 years, there will be significantly fewer workers supporting an aging population due to a declining birth rate and the fact that baby boomers are nearing retirement age, he said.
Mr. Martin said this calls for immediate government action, and outlined a number of government programs — in health care, education, immigration, the economy, environment, child care, defence, international relations, aboriginals and cities and communities — that have been designed to meet these challenges.
Although Mr. Martin has promised to call an election 30 days after Justice John Gomery releases his final report on the sponsorship scandal Feb. 1, there is speculation the opposition could attempt to defeat the Liberals this fall which would mean a pre-Christmas election.
Mr. Martin took aim at those involved in the sponsorship scandal, reassuring mandarins that he considers these people “unacceptable aberrations in a public sector that is honest, talented and committed to Canadians.”
He praised the bureaucrats several times telling them that as Prime Minister, he may be the face of the federal government, but they “are its heart.”
NDP leader Jack Layton was highly critical of Mr. Martin’s optimistic presentation of his government’s accomplishments.
He noted that his party has advocated a more diversified trading relationship with China for years.
“ The problem is what Mr. Martin often does is he’ll talk about it and not act. In order to increase shipments to China there would have to be very significant increases in port infrastructure for example and rail infrastructure,” said Layton.
“We’re suggesting we’re going to have all kinds of tourists from China ... and yet pretty large numbers of visas for tourists are being turned down in China right now.”
CanWest News Service, with files from Tim Naumetz