Canada records its first trade deficit since 1976

[LargoWinch]

Re: Canada records its first trade deficit since 1976

The exchange rate only helps until equilibrium is established once again. If the exchange rate is stable the costs in the US vs. Canada are pretty comparable. IMO one big competitive advantage for Canada is the reluctance of Americans to accept universal health care which burdens their industry with a big competitive disadvantage compared with the rest of the developed world.

I think a useful way of understanding Canadian -American relations/economic relationship is to remember that we are derived from the same British colony and have the same heritage, the big difference is that the polite and obedient colonists settled in Canada post war of independence and the belligerent ones stayed in the US! This I think goes some way toward explaining the characteristic Canadian conservatism vs the American tendency to take more entrepreneurial risks. The American war of Independence and the war of 1812 did a good job of sorting these tendencies early on and our behaviour is still somewhat determined by this.

We are tied together by geography and history so I hope we'll be able to continue to get along.

That is an interesting viewpoint.

Although I disagree that the "belligerent ones stayed in the US", far from it:
http://en.wikipedia.org/wiki/Karla_Homolka

I also think to some extent that Canada benefits from generic drugs greatly and has somewhat of a free lunch on healtcare because of this.

[Spartacus]

Re: Canada records its first trade deficit since 1976

That is an interesting viewpoint.

Although I disagree that the "belligerent ones stayed in the US", far from it:
http://en.wikipedia.org/wiki/Karla_Homolka

I also think to some extent that Canada benefits from generic drugs greatly and has somewhat of a free lunch on healtcare because of this.

Agreed. There's also the outlet, for those who can afford it, of US hospitals within a 2 hour plane trip to bleed off the political pressure rich people would apply otherwise.

[Nicolasd]

Re: Canada records its first trade deficit since 1976

Mr Fibuli, I think Canadian and American economy are quite different and difficult to compare altough we reached a comparable standard of living.(with debt at a lower level both public and private ,I must say;))

We are mostly concentrated on ressources and far less diversified than the US economy.Just have a peak of the composition of our TSX by sector of activity.

We produce , you transform , it has been a win/win situation so far.

We have universal health care which is offset by very humble defense/war spending :p.


Wonder what will happen to us when our natural ressources would be totally depleted ? Suppose we go back to age old proven cheap labour route ..... via currency depreciation.

[Uno]

Re: Canada records its first trade deficit since 1976

Interesting that in 1812 the Republican war hawks (Madison) in the USA thought they could easily take over Canada. Same kind of republican thinking invading Iraq, last time it did not bankrupt the country but still cost the US middle class a plenty.

[mr_fibuli]

Re: Canada records its first trade deficit since 1976

[quote=LargoWinch;76721]That is an interesting viewpoint.

Although I disagree that the "belligerent ones stayed in the US", far from it:
http://en.wikipedia.org/wiki/Karla_Homolka

That is not an example of belligerence.
(http://en.wiktionary.org/wiki/belligerent)

The point I am trying to make is that the American revolution acted as a sorting mechanism - the Loyalists came to Canada and reinforced the connection to Britain - this did play an important role in the development of the Canadian identity (especially in the east)

A more germane wiki quote to counter my argument might be:
http://en.wikipedia.org/wiki/Rebellions_of_1837

[mr_fibuli]

Re: Canada records its first trade deficit since 1976

Mr Fibuli, I think Canadian and American economy are quite different and difficult to compare altough we reached a comparable standard of living.(with debt at a lower level both public and private ,I must say;))

We are mostly concentrated on ressources and far less diversified than the US economy.Just have a peak of the composition of our TSX by sector of activity.

We produce , you transform , it has been a win/win situation so far.

We have universal health care which is offset by very humble defense/war spending :p.


Wonder what will happen to us when our natural ressources would be totally depleted ? Suppose we go back to age old proven cheap labour route ..... via currency depreciation.

I would say actually that the Canadian economy is quite similar to the US in many ways but much smaller. We have resources, telecom, aerospace, medical, military etc. etc. industries - probably just about everything that is in the US and the trade and technology relationships are quite intricate and intertwined.

[LargoWinch]

Re: Canada records its first trade deficit since 1976

fibuli, I see your point.

Please note that my previous link was intended to provide a single narrow example within a humoristic context. It was not intended to counter any argument in any serious way.

Having said that, although I am flattered by your argument being a Canadian myself, I simply wanted to illustrate that I tend not to make any blanket statements about the citizens of any country since I believe that there are "good and bad apples in every basket".

[mr_fibuli]

Re: Canada records its first trade deficit since 1976

fibuli, I see your point.

Please note that my previous link was intended to provide a single narrow example within a humoristic context. It was not intended to counter any argument in any serious way.

Having said that, although I am flattered by your argument being a Canadian myself, I simply wanted to illustrate that I tend not to make any blanket statements about the citizens of any country since I believe that there are "good and bad apples in every basket".

Fair enough - I believe though, that behind stereotypes there is often some grain of truth. Not enough to be able to predict the behaviour of an individual but still a guide to how a large collection of individuals who share the same background or culture might behave. There will always be exceptions to the rule.

[DToM67]

Re: Canada records its first trade deficit since 1976

It's time to renegotiate NAFTA, critics tell Harper

"A coalition of major Canadian organizations yesterday urged Prime Minister Stephen Harper to signal Canada's willingness to renegotiate NAFTA in talks next week with President Barack Obama..."

"... claiming the deal damages working people in all three signatory nations (Canada, the U.S. and Mexico), it specifically calls for the elimination of the energy clause requiring Canada to continue to export non-renewable resources to the U.S., even in times of crisis... The letter also calls for an end to the ultrasecret Security and Prosperity Partnership of North America."

"... report, titled The Obama Effect, urges Ottawa to, among other things, work to exclude water from NAFTA and ban bulk water exports, as well as putting more emphasis on ensuring basic public services like medicare and education can be expanded without risk of NAFTA challenges from foreign investors."

Just a lot of blustering, or is there something to this? Defacits and fwd outlook certainly impacted by suggested moves. Looks like the nationalist rhetoric is growing, in more places than just the US of A.

[GRG55]

Re: Canada records its first trade deficit since 1976

It's time to renegotiate NAFTA, critics tell Harper

"A coalition of major Canadian organizations yesterday urged Prime Minister Stephen Harper to signal Canada's willingness to renegotiate NAFTA in talks next week with President Barack Obama..."

"... claiming the deal damages working people in all three signatory nations (Canada, the U.S. and Mexico), it specifically calls for the elimination of the energy clause requiring Canada to continue to export non-renewable resources to the U.S., even in times of crisis... The letter also calls for an end to the ultrasecret Security and Prosperity Partnership of North America."

"... report, titled The Obama Effect, urges Ottawa to, among other things, work to exclude water from NAFTA and ban bulk water exports, as well as putting more emphasis on ensuring basic public services like medicare and education can be expanded without risk of NAFTA challenges from foreign investors."

Just a lot of blustering, or is there something to this? Defacits and fwd outlook certainly impacted by suggested moves. Looks like the nationalist rhetoric is growing, in more places than just the US of A.

Can't understand why all this "coalition of the willing" isn't advocating an exclusion of exports of softwood lumber while they are at it...:rolleyes:

[metalman]

Re: Canada records its first trade deficit since 1976

Looks like the nationalist rhetoric is growing, in more places than just the US of A.

oh, it's just getting warmed up!

[mr_fibuli]

Re: Canada records its first trade deficit since 1976

Can't understand why all this "coalition of the willing" isn't advocating an exclusion of exports of softwood lumber while they are at it...:rolleyes:

True, it must be an oversight. It's easy to be "willing" when you don't have a direct interest in the position you're advocating. Don't see anyone here with a job in energy or transportation that might be negatively affected:

"Among the signatories to the letter to Harper are the Ontario Federation of Labour, the Ontario Secondary School Teachers Federation, the Coalition of Black Trade Unionists (Ontario Chapter), OXFAM Canada, the Council of Canadians, Sierra Club of Canada and the Canadian Federation of Students"

[GRG55]

Re: Canada records its first trade deficit since 1976

True, it must be an oversight. It's easy to be "willing" when you don't have a direct interest in the position you're advocating. Don't see anyone here with a job in energy or transportation that might be negatively affected:

"Among the signatories to the letter to Harper are the Ontario Federation of Labour, the Ontario Secondary School Teachers Federation, the Coalition of Black Trade Unionists (Ontario Chapter), OXFAM Canada, the Council of Canadians, Sierra Club of Canada and the Canadian Federation of Students"

Hey, we could really start a movement here. Let's ban the export of:

• Wheat [because it takes a lot of petroleum to plant, fertilize, herbicide, harvest and ship grain from prairie to market, so selling it must be adding tons to global warming ];
• The full-size Chevy Impala sedans, GM pick up trucks, and the new Camaro, all made in Oshawa [not socially responsible to drive a big car, a big truck, or heaven forbid a muscle car...what are you thinking Canada? Shame on you :eek:];
• Ditto for the Ford Crown Vic, Mercury Grand Marquis, and Lincoln Town Car, all made in St Thomas [All contrary to good global citizen reputation desired by Canadians; screw the CAW];
• Fish [We know the Grand Banks are being overfished, so if Canada stops maybe we set a good environmental example, eh. Take that Danny Williams :p];
• Beef and beef cattle [Global warming rears its ugly head again, this time in the form of methane rich cow flatulence . No cattle, no problem...class dismissed];
• All mine output [How can we call ourselves good Canadians while raping the earth?];
• Petrochemicals [Reasons intuitively obvious];
• Uranium [Reasons even more intuitively obvious].

When we throw in the aforementioned timber, that should pretty well shut down most of the Canadian economy from coast to coast. Of course aluminum and hydro-power exports would be untouchable [to avert another constitutional crisis].

Owe Canada...:rolleyes:

[LargoWinch]

Re: Canada records its first trade deficit since 1976

Hey, we could really start a movement here. Let's ban the export of:

• Wheat [because it takes a lot of petroleum to plant, fertilize, herbicide, harvest and ship grain from prairie to market, so selling it must be adding tons to global warming ];
• The full-size Chevy Impala sedans, GM pick up trucks, and the new Camaro, all made in Oshawa [not socially responsible to drive a big car, a big truck, or heaven forbid a muscle car...what are you thinking Canada? Shame on you :eek:];
• Ditto for the Ford Crown Vic, Mercury Grand Marquis, and Lincoln Town Car, all made in St Thomas [All contrary to good global citizen reputation desired by Canadians; screw the CAW];
• Fish [We know the Grand Banks are being overfished, so if Canada stops maybe we set a good environmental example, eh. Take that Danny Williams :p];
• Beef and beef cattle [Global warming rears its ugly head again, this time in the form of methane rich cow flatulence . No cattle, no problem...class dismissed];
• All mine output [How can we call ourselves good Canadians while raping the earth?];
• Petrochemicals [Reasons intuitively obvious];
• Uranium [Reasons even more intuitively obvious].

When we throw in the aforementioned timber, that should pretty well shut down most of the Canadian economy from coast to coast. Of course aluminum and hydro-power exports would be untouchable [to avert another constitutional crisis].

Owe Canada...:rolleyes:

We have already stopped the export of Celine Dion and look at the utter devastation in Vegas!