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Question 9: ProsperityShould Canada focus on cultivating new economic partnerships with emerging
powers such as China, India, Mexico and Brazil?
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| Contributor: | CCIC |
| Date: |
2003-05-01 21:16:51 |
| Answer: |
Whatever partnerships Canada pursues should be governed by the overriding principles outlined in CCIC’s response to question 1. Though growth may be needed to reduce poverty, there are no guaranteed gains in poverty reduction from increased market access or even from increased export growth in developing countries. Indeed, expanded trade can mean rising inequality and poverty, where export growth:
§produces gains that are captured by industry or wealthy exporting elites;
§increases industry damaging to the environment or livelihoods of the poor; or
§comes at the expense of larger more important domestic sectors.
The Mexican experience under the North American Free Trade Agreement (NAFTA) has been linked to the suffering of small-scale basic grains producers due to lower prices and the import of subsidized crops, the proliferation of the low-paying, non-unionized jobs in the maquila industry, and the failure of the Mexican government to protect the communal land-holdings of indigenous peoples. In terms of increased economic partnership with Mexico and Brazil, CCIC is concerned about the potential of the Free Trade Area of the Americas (FTAA) to aggravate poverty as a result of the lack of democracy surrounding FTAA negotiations as well as the omnibus nature of the proposed FTAA agreement. In some instances sectoral trade agreements may be less damaging to the economies of poor countries. However, in all cases, fundamental human, social and environmental rights need to be upheld.
As a precondition to any negotiations involving international trade, the governments involved must recognize and enforce the protection of human rights, international health, safety, environment and labour standards (including the right to organize and join unions). Moreover, trade agreements such as the FTAA must preserve the scope for governments to pursue public services such as health care, education and access to clean water.
Recommendations in response to Question 9
1. Govern partnerships (including with Mexico, Brazil, China, India) by the overriding principles outlined in CCIC’s response to question 1.
2. Enforce the protection of human rights, international health, safety, environment and labour standards (including the right to organize and join unions) as a precondition to any negotiations involving international trade.
3. Preserve the scope for governments, in entering into agreements such as the FTAA, to pursue public services such as health care, education and access to clean water. |
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