Title: From%20Protectionism%20to%20Globalization:%20The%20Rise%20and%20Internationalization%20of%20Canadian%20Capital
1From Protectionism to Globalization The Rise
and Internationalization of Canadian Capital
2External influence on Confederation
- After Britains repeal of the Corn Laws (1846)
and the end of the Reciprocity Treaty with the US
(1854-1866), Canada was without a trading
partner. - Fear of American military power, the Fenian raids
and the rivalry over the western portion of the
continent were factors leading to Confederation
in Canada.
3Internal Influence on Confederation
- Political deadlock in the Province of Canada.
- Economic development was occurring and the
emerging industrial and political elite saw
benefits to be had in building Confederation and
transcontinental project.
4Pre-Confederation Economic Development
- The strength of the wheat economy in Upper
Canada/Canada West/Ontario combined with
immigration and a canal and railway building
spree to launch economic development and the
beginnings of industrialization around the mid
19th century. - At the time of Confederation, Canada was the 8th
largest manufacturing country in the world. By
1871, manufacturing accounted for just under 25
of GDP.
5Confederation
- Ryerson Confederation resulted from the growth
of a native, capitalist industry, with railway
transport as its backbone, and expansion of the
home market as the prime motive for creating a
unified and autonomous state - Naylor Confederation itself was little more
than an elaborate exercise in public finance - Underhill government of the people, by lawyers,
for big business
6Protectionism
- Galt Tariffs of 1858-59
- National Policy Tariffs of 1879
- The tariffs distinguished between semi-finished
goods and industrial materials (10-20 percent
duty) manufactured equipment (25 percent) and
finished consumer goods (30 percent).
7Protectionism
- Naylor The Macdonald tariff produced industry
in Canada but no Canadian industry Naylor called
this industrialization by invitation - Bliss the funny thing about our tariff walls
was that we always wanted the enemy to jump over
them. Some walls!
8Canadian statism
- What was the significance of the active Canadian
state? - a pragmatic, public enterprise culture
- latent socialism (which is described positively
or negatively depending on the author) - public enterprise for private accumulation
9Debating Free Trade
- Wilfrid Laurier and the Liberals campaigned on
freer trade with the US in 1891 and 1911. - Both times they lost to the Conservatives.
- No truck nor trade with the Yankees Robert
Borden, 1911
10Second World War
- During the Second World War, Canadian and
American defence policy and production for the
war effort were highly integrated. - Ogdensburg Agreement 1940 created Permanent Joint
Board on Defence - Hyde Park Declaration 1941
11Postwar Trade Liberalization
- Canada signed on to the General Agreement on
Tariffs and Trade (GATT) in 1947. - Successive rounds of negotiations led to an
increasingly open trading environment. -
12Growing Concerns about American Foreign Policy
- Bomarc missile crisis, 1960-63
- Vietnam War
13Growing Concerns OverForeign (esp. American)
Ownership
- Pipeline Debate 1956
- Royal Commission on Canadas Economic Prospects,
Gordon Report, 1956-57 - George Grant, Lament for a Nation, 1965
- Taskforce on Foreign Ownership and the Structure
of Canadian Investment, Watkins Report, 1967-68 - Kari Levitt, Silent Surrender The Multinational
Corporation in Canada, 1970 - Task Force on Foreign Ownership, Gray Report,
1970-72 - The Waffle, 1969-74
- Committee for an Independent Canada, 1970-81
14Federal Government Response to Economic
Nationalism
- Canada Development Corporation 1971
- The Third Option 1972
- Foreign Investment Review Agency 1973
- Petro-Canada 1975
- National Energy Program 1980
15Canadian Business Embraces Continentalism
- Business groups like the BCNI (which later
becomes the CCCE) and think tanks like C.D. Howe
Institute helped generate a business consensus in
favour of free trade with the US.
16Canadian State Embraces Continentalism
- Royal Commission on the Economic Union and
Development Prospects for Canada, Macdonald
Commission, 1982-85 - Canada-US Free Trade Agreement (FTA), 1989
http//archives.cbc.ca/politics/prime_ministers/c
lips/9807/ - North American Free Trade Agreement (NAFTA), 1994
- Meanwhile, GATT was transformed into the World
Trade Organization (WTO) in 1994.
17The FTA and NAFTA More than free trade
agreements
- Along with trade in goods, these deals cover
- services
- investment and investor rights
- national procurement policies
- intellectual property rights
- energy provisions (Canadian govts can not act to
give Canadians preferential access to Canadian
energy, such as oil. US consumers and business
have their access to Canadian energy protected.)
18Anti-Globalization Movement
- Anti-globalization movement or
- global justice movement?
19Birth of a movement in Canada
- In Canada, the anti-globalization movement has
its roots in left nationalism of the late 60s and
early 70s. - Its intellectual roots are provided by the New
Canadian Political Economy (NCPE), including the
dependency theorists and the Marxist theorists. -
20Fight Against the FTA
- Council of Canadians, formed 1985
- Pro-Canada Network, 1987 which becomes the Action
Canada Network, 1991, later becomes the
Solidarity Network, 1998, and then fizzled out
around 2004. - Citizens Concerned about Free Trade led by David
Orchard
21NAFTA
- Battle Against NAFTA
- Common Frontiers
- Side Agreements were negotiated
- North American Agreement on Environmental
Cooperation (NAAEC) - North American Agreement on Labor Cooperation
(NAALC)
22APEC Summit, Vancouver 1997
- Asia-Pacific Economic Cooperation
- The RCMP acted with significant force to try and
keep protesters completely out of the sight of
the delegates, including the Indonesian president
Suharto. - The controversy over the RCMP response led to an
inquiry from 1998 to 2000. The inquiry was highly
critical of the RCMP and the federal government. - http//archives.cbc.ca/war_conflict/civil_unrest/c
lips/2016/ - http//archives.cbc.ca/politics/federal_politics/c
lips/11710/
23Selected Anti-Globalization Demos Around the World
- Geneva, WTO, May 1998.
- Köln, Germany, G8, June 1999.
- Seattle, WTO, November 1999.
- Davos, World Economic Forum, January 2000.
- Washington, DC, IMF, April 2000.
- Prague, World Bank/IMF, September 2000.
- Genoa, G8, July 2001, one protester shot dead.
- Kananaskis, Alberta, G8, June 2002.
24Quebec Summit, April 2001
- Video View from the Summit.
- Featuring
- demonstrations against the Free Trade Area of the
Americas (FTAA), including a march of 50,000
people. - Operation Salami formed during the movement
against the proposed Multilateral Agreement on
Investment (MAI). It organized and promoted
peaceful civil disobedience, obstruction - CLAC Anti-Capitalist Convergence favoured and
supported a diversity of tactics green zone
festive demonstration, yellow zone - obstruction,
red zone - disruption - Thomas DAquino, president of the Business
Council on National Issues, now the Canadian
Council of Chief Executives. - Richard Feinberg, American academic and former
consultant to the US State Department.