Presented by Ken Georgetti on Friday, 7 May 2010

(Check Against Delivery)

Thanks Paul and on behalf of the 3.2 million members of the Canadian Labour Congress (CLC), I want to also thank the Canadian Bar Association for this opportunity to present our views on cross-border issues – and to such an impressive panel of experts.

The CLC brings together national and international unions along with the provincial and territorial federations of labour and 130 district labour councils whose members work in virtually all sectors of the Canadian economy.

Your conference is important, because our labour movement knows that the Canada-U.S. relationship bears directly on the lives of working people in this country, for better or for worse.

One of America’s founding fathers, Benjamin Franklin, once said, and I quote: “No nation was ever ruined by trade.”

Very wise – and very true.

But for Canadian workers, how that trade is conducted is critical – to their jobs and our nation’s economy.

The extent to which trade agreements affect investment controls and the ability of federal, provincial and municipal governments to implement policies to create jobs and protect our communities and the environment is also a concern to us.

Unions want trade – and trade agreements – that create and protect good paying jobs in this country, that value our public services and social programs and that stimulate sustainable growth for our communities.

We make no apologies for that – unions exist to help protect workers’ and the community's interests.

After all, it’s about creating a better future for our children.

And while no one would argue that Canada has been “ruined by trade”, unfortunately we can testify that Canadian workers have been punished by several trade agreements our country has signed.

American President John F. Kennedy said: “A rising tide, lifts all boats.”

True again, but for Canadian workers the tide went out many years ago with the North American Free Trade Agreement between the U.S., Mexico and Canada.

And that tide never came back to lift our boats one inch!

Canadian workers have suffered from stagnating wages for the past two decades – nearly a quarter century where there were no real wage increases after inflation.

So pardon me for not being enthusiastic about so- called free trade – because my members – and indeed all Canadian workers – have not benefited.

In fact, trade deals like NAFTA – and I’m sure Barry Appleton will have something to say on this – aren’t worth the paper they’re printed on when it comes to guaranteeing workers anything.

Look at NAFTA – there is a quote “side deal” on labour rights to protect workers’ interests.

But today the Mexican government is repressing several of that country’s largest and democratic unions.

The leader of Los Mineros – the Mexican mineworkers union – has been in exile in Canada for over three years because of the Mexican government persecution.

Some partner Mexico has turned out to be on labour rights!

And now Canada is pressing to sign a free trade deal with Colombia – the most dangerous country in the world to be a union member!

Last year 45 trade unionists were murdered in Colombia – and that was an improvement – hundreds have been killed in the past seven years.

So forgive Canadian labour for being cynical about these deals – because the free trade we see doesn’t help our members – or our workers around the world.

Let’s look at our central topic where labour believes Canadian business made a major error by putting all its eggs in one basket – trade with the U.S.
Because when the market crashed and the recession began, Canada was hurt as the United States turned inwards to bolster its own businesses.

We were cut out of key sectors where billions in U.S. public funds were invested.

“Buy America” was quickly leading to “Bye-bye Canada”!

So Canada was forced to negotiate our way out of trouble – but the federal government actually panicked and gave away the whole store.

Lee Richardson may well disagree, but unfortunately we are now faced with The Canada-U.S. Agreement on Government Procurement – for which we will pay dearly – and long into the future.

There are many problems in our view:

Canada, for the first time, has bound its provinces and territories to permanent commitments under the World Trade Organization’s Government Procurement Agreement.

In the midst of an economic crisis, provinces and territories are forced to give up the right to hire local workers and local companies, in both the public and private sectors.

Secondly, governments have signaled their willingness to relinquish even more control over Canada’s economic development in future negotiations with the United States, and in ongoing negotiations with the European Union.

Thirdly, by connecting this new Agreement to the fight against “rising protectionism” – the legitimacy of our own “Buy Canadian” policies has been undermined.

Fourth, we are astonished that the federal government has given us no indication of the harm actually suffered by Canadian suppliers that prompted accepting this unprecedented Agreement.

There have been no studies carried out by the government to determine the amount of harm that may be caused to Canadian business through these policies and agreements.

Information on the damages caused to Canadian suppliers because of the Buy-American preferences is purely anecdotal and from media reports, not actual studies.

Fifth, it is indeed true that there are lots of exceptions and reservations to the Agreement on both sides.

However, the government is unable to provide us with an accounting of costs and benefits.

There have been no studies of the potential damages to the Canadian economy as a result of the presence of larger U.S. suppliers of goods and services to the public sector.

So we truly have a lot of problems – and no solutions.

What’s more, the strength of the Canadian dollar against American currency is hurting our manufacturing industries.

But let me end on a positive note – there are solutions that would benefit both Canadian workers and employers.

With Canada’s high dollar and record low interest rates, it’s time for industry to invest – invest in technology and equipment, in worker training and skills development, in research and innovation.

This is a perfect opportunity to deal with our lagging productivity.

Business in Canada had its way with our governments – they convinced elected leaders that corporate tax cuts were mandatory in order to compete with America and the world.

Business got everything it wanted in our view – but then it didn’t deliver the goods.

But now’s the time – this is their chance to step up to the plate and do what they promised.

And with over one and a half million men and women unemployed, now is the time for business to create jobs in Canada – because we desperately need them.

Thank you for listening.