In his upcoming book on U.S. President Donald Trump’s White House, veteran American journalist Bob Woodward depicts a scene that shows the danger the president poses to international trade. Woodward states that former chief economic advisor Gary Cohn stole papers that, if signed by Trump, would have removed the country from a free trade deal with South Korea. Cohn stated that he had to take the papers from Trump’s desk, since reneging on an agreement with a crucial ally would be a serious threat to the national economy.
Trade between countries is a crucial component of our global society, dating back to around 114 BCE, when the Silk Road was first developed in imperial China under the Han dynasty. Without international trade, countries would not be able to provide goods to their citizens that they are unable to produce themselves. The North American Free Trade Agreement (NAFTA) between Canada, the U.S., and Mexico is a key pillar of globalization in today’s increasingly protectionist international climate.
Trump took a major turn from modern U.S. policy by challenging free trade in favor of restrictive borders and tariffs on imports—all in the name of national security. His supporters are steadfast in arguing against free trade agreements like NAFTA. They argue that Canada’s supply management system puts farmers in Wisconsin at a disadvantage, despite the fact that supply management is necessary to protect our dairy industry from a heavily subsidized, over-producing dairy industry in the United States.
If the Trudeau government ends supply management to appease Trump, this would result in the Canadian market being flooded with cheap, hormone-filled milk that may cause many Canadian farmers to lose their jobs.
The 2016 Brexit referendum and the near election of Marine Le Pen in France have shown that right-wing, anti-globalization leaders are gaining lots of strength on the world stage. While other free trade agreements such as the European common market are important regional pacts, NAFTA remains the symbolic figurehead for successful free trade agreements worldwide. To lose NAFTA would be a victory for the “us vs. them” mentality. It would be a victory for the fear of those outside of our borders. Free trade allows us to prioritize production of the goods that we have a comparative advantage in, while retaining access to imported goods so we can still enjoy what the rest of world has to offer.
The Trudeau government must work to ensure NAFTA re-negotiations are successful. If we bow to Trump’s unfair demands, global actors will follow suit. It will become the norm to throw former allies under the bus with unsubstantiated claims of “they are threatening our economy.” We need to keep in mind that while the U.S. is still the only superpower in the world, Trump’s actions will be replicated by other like-minded leaders. While he is mocked now by people in other countries, remember that there is a reason he was elected by millions of American voters. Espousing anti-trade views without factual basis continues to appeal to blue collar workers in many countries.
Losing NAFTA would not only harm Canadian, American, and Mexican workers, but it would demonstrate that right-wing protectionist populism is more powerful than global unity. It would likely be followed by the breakdown of diplomatic trade relations in other parts of the world, in an attempt to capitalize on Trump’s apparent popularity.
It is up to Canada to defend international trade, and to ensure that NAFTA remains a figurehead for unity and symbiotic benefit worldwide.
Photo by Jasmine Foong
