Could Quebec’s role as a nation within Canada finally pay off? It’s increasingly beginning to look like Jean Charest’s activism might actually benefit all of Canada by placing the nation square in the middle of the two biggest developed economies in the world.
Since Confederation, Canada’s largest trading partner has been the United States, which now receives about of 85 per cent of the nation’s exported goods. Both nations have benefited from a free-trade deal covering a wide range of issues since 1988 under the North American Free Trade Agreement (Mexico was added in 1994). However, with stagnating US growth and the increasing inability of Washington lawmakers to differentiate between Douglas Crossing in British Columbia and Durango (a state in Mexico), the Department of Foreign Affairs and International Trade (DFAIT) appears to have taken a new approach.
While rumours had been circulating for quite some time, last week it was announced that on Oct. 17, substantive negotiations would commence in order to develop a working agreement on a wide-ranging Free Trade Agreement between the 27 European Union member economies and Canada. Besides creating a second major market for Canadian goods, the proposed agreement would also enable Canada and the EU to allow for labour mobility through mutual recognition of professional qualifications and allow countries in either zone to bid on government contracts within the free trade area.
Though it will probably be two to three years before the agreement is finalized, it is clear that such a deal could only be good for all sides. While it may cause a few job losses, the overall increase in market efficiency will be in the billions of dollars. Additionally, Canada will be much less reliant on the faltering US economy, an increasing concern for all. What is most significant, however, is the single ability of Canada under this deal to be the only developed nation to have far-reaching free trade deals with the two largest developed markets on the planet. As the US increasingly reverts to a protectionist mindset, Canada may become the only means by which foreigners can access US markets. While this would not be a positive development for anyone, it has have benefits for Canadian companies who are poised to offer unique services to their clients.
Though Canadians have shown themselves in the past to be skeptical of many free trade deals, especially with the US, all Canadians should applaud those leading the charge, regardless of their partisan affiliation. While it may cause some hardship for Canadians as they adjust to unfamiliar labeling or safety standards, the net benefits for Canadians are too great to ignore: the introduction of new competition will only be good for the markets. Additionally, the new level of cooperation between government officials that is necessary to create a deal such as this will surely spin off additional benefits beyond those that have been speculated on so far.
It appears Quebec’s renewed ties with France are paying off, along with the province’s role as a “nation” within Canada. Stephen Harper and his team should also be given some credit for this step, although this concept has all-party support and would go ahead no matter who wins the election.
Though Canadians might have to endure some minor changes, anything that puts Canada in such a position as this should advance quickly through the system and be given the full support of the government. Opportunities like this don’t come up every day and Canadians should not be deprived of them.
