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Sunday, June 17, 2018

Canadian discovers the truth about USA trade

Justin Trudeau is riding high on talk of a trade war with the United States.

But Daniel Tencer, Senior Business Editor for HuffPost Canada, has discovered the truth about trade relations with the United States.

The world needs us more than we need them.

"The simple reality is that Canada's economy is far more dependent on trade with the U.S. than the other way around. Far, far more," Tencer wrote.

Ontario is Canada's most prosperous province, acounting for 40% of its GDP.

Half of Ontario's economy relies on trade with the United States.

In all, 20% of Canada's economy is based on trade with the United States.

That's about 10 times the impact Canada has on our economy. Our trade with the entire world is only 12% of our economy.

Tencer was upset to learn this. Without the USA, Canada may as well be New Zealand without the sheep.

"National Bank Financial Markets geopolitical analyst Angelo Katsoras, who put together the map, says there's something that could hurt Canada more than Trump's trade tariffs, and that's the uncertainty that seemingly endless NAFTA negotiations are creating," Tencer wrote.

"Companies don't want to invest into uncertain climates, and when business investment stalls, so does job creation."

Tencer cited a column in which Katsoras said, "With NAFTA in place, Canada is an option when globally oriented firms considered their North American strategies; without it, Canada is a smallish market that probably can be served from the U.S. or elsewhere."

Ouch.

Time for the Canadians to chill and sign the new NAFTA. Uncle Sam has the upper hand. Be glad that he is benevolent.

###

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28 comments:

  1. The time for benevolence is past. They should be treated like any other pint-sized squirt of a non allied country. They have wasted too much of our time and got themselves into this pickle. No more. Take it or leave it. No one really cares.

    ReplyDelete
    Replies
    1. I say withdraw the offer of a treaty and let canada be just another nothing country (to us). they really are an unwanted appendage.

      Delete
  2. EF canada... It's enough we cover their national defense! they can't do much with a kayak navy.

    ReplyDelete
    Replies
    1. Kayak navy? They upgraded from ice bergs?

      Delete
    2. Pretty sweet when you can count on your neighbor to the south to provide you a protective umbrella; sure does free up a lot of tax dollars for other things.

      Delete
  3. If they'd had any sense, they'd have jumped at the chance to become part of the US.

    Then Barry would have had his 60 states

    ReplyDelete
    Replies
    1. Then we would have had a another Ca on steroids,that being Ontario.

      Delete
  4. Same is true of most of our trade partners. There is no logical reason to continue to let them shit on us.

    ReplyDelete
  5. I am going to boycott maple syrup, that should pretty much crash dar economy darah?

    ReplyDelete
    Replies
    1. Buy the syrup made in Maine and Vermont. Unfortunately for me, my only local source of maple syrup is COSTCO and their Kirkland house brand syrup is imported from Canada.

      Delete
    2. I thought Grand Fenwick‘s only export was wine?

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    3. Dave,

      I live in a gated community in Ocoee, FL. Our section is named Fenwick. Whenever I walk by the sign I do the Grand Duchy of Fenwick salute. I get some funny looks.

      Delete
  6. I'll believe the Canadians are serious about boycotting the US when they stop going to the US for medical care.

    The population of Canada is one-tenth that of the US, about the same as that of California. It's no surprise they depend more on us than we on them. The market for curling gear in the US is rather limited.

    ReplyDelete
    Replies
    1. Embargo Kraft Macaroni & Cheese exports to Canada, and starve ‘em into submission.

      Delete
    2. I could see trading California for SAM (Saskatchewan, Alberta, Manitoba).

      Delete
    3. But hockey gear is rising with the collapse of the NFL.

      Delete
    4. Dave, they would eat yellow snow and not know the difference.

      Delete
  7. New Zealand without the sheep? Come now, Don. Jussie's woolly-headed enough for the whole country.

    ReplyDelete
    Replies
    1. All the wool is used for Justin's eye brows...

      Delete
    2. They say that the only crooks they have in New Zealand are the ones they use to pull the sheep closer.

      Delete
  8. "Our trade with the entire world is only 12% of our economy."

    Game, set, match.

    Justin - the Gorilla Glue Company on Line One!

    ReplyDelete
    Replies
    1. It would be higher, but worthless Willie and HiLlARy the slinky sold us down the river for Chinese campaign contributions and other assorted things.

      Delete
  9. I enjoy our Canadian cousins and there ways, good folks for the most part.
    I just can't understand why they vote for the most incompetent person running for office, any office from town to state to federal government.

    ReplyDelete
    Replies
    1. Writes the man whose country regularly elects various versions of Obama, Nancy Pelosi, Anthony Weiner and Chuck the Schmuck Schumer.

      Delete
  10. "Be glad that he is benevolent." ... and more fair than stupidly & naively overly generous, as has been the habit of too many past Presidents.

    Trump has called for total free trade, no tariffs nor non-tariff trade barriers, no subsidies. That is the right goal for all Free Trade folk, and the best for the economies of the world.

    But for huge numbers of special interests, including US corn growers at times, subsidies and other managed trade is, so far, too politically popular.

    Trump's willingness to equal the unfair trade positions of US allies is the most rational way to get long term cooperation in reducing trade barriers and maximizing mutual win-win benefits.

    ReplyDelete
    Replies
    1. Some guy on the John Batchelor show was giving a dissertation on trade, and in particular with milk in Canada. Canada allows the importation of milk to a certain low point at 4-6% tariff rate; after that low threshold is achieved the tariff jumps to 270% (yep, you read it right), and obviously nobody is going to pay for that. So, milk in Canada is huge business and you have to have quota rights to produce it; it's highly regulated. Evidently there is something like $20 Billion (US) in purchased quotas. The result is that each milk cow is $28K in real costs.

      Obviously if you got rid of tariffs those purchased quotas would be relatively worthless, and whoever zeroed them out would pay a heavy political price. The milk lobby is pretty powerful up there.

      Delete
  11. The problem I have as a Canadian reading most of these smart-ass comments is that they are mostly right.

    We had too good a gig going and Trump properly asked for a renegotiation. We got the sweet deal as a result of cold war Russia's constant romancing which forced the USA to make nice. Russia is a spent force so the deal has to end.

    Sooner or later the dolt Trudeau will be forced by reality to accept this. More likely Toronto money-men will take him into a quiet room and financially brass knuckle his stupid head. One can only hope.

    ReplyDelete