From: speednut@werple.apana.org.au (Mark Jose)
Newsgroups: soc.culture.japan
Subject: Re: Honda: America's choice!
Date: 25 Jan 1993 11:01:49 +1100
Organization: werple public-access unix, Melbourne
NNTP-Posting-Host: werple.apana.org.au

Original Message From: keis@psy.uwa.oz.au (Keis Ohtsuka)
 
>k3amichi@student.business.uwo.ca (Kentaro Nakamichi) writes:
 .
 .
>to foreign trade as it decreases GNP. I am delighted, however, to know that
>there is at least one Canadian who has an optimistic view of NAFTA
>which equally benefits trade interests of all signatory nations.
 
Won't they all benefit, at least economically? About the only real
problem would be the loss of employment and some industry to the less
"environmentally conscious" Mexico.
 
>What happend to the dispute of Canadian-made Honda passenger cars?
 
Didn't Canada originally pay huge amounts to get Honda to go there?
Don't Honda get tax breaks, subsidies etc to produce there? Not to
say that GM doesn't get the same thing in the USA but at least GM
isn't just an assembly line - they do produce parts in the USA.
 
>Did Ottawa and Washington agree on what criteria they should use
>to determine the "domesticity" of automobile?
 
How many parts from the Honda are manufactured in the USA, compared
to say, the Taurus? Surely this is a sign of "domesticity". Do the
USA enforce "local content" rules for their motor vehicles - I think
not.
 
>In my opinion, the formation of a regional trade block or bilateral
>trade agreements in principle goes against the sprit of free trade.
 
"Free trade" is a furphy. It is a goal all members of GATT aspire to
but how many practice it? In fact, what countries do?
 
"Free trade" cannot come about because of the various mechanisms
countries use to stop imports. Some countries use dumping regulations,
others use tariffs, others use excise duties and some even slow the
despatch of goods through customs or wharves. Then other countries
form blocs and sell between themselves - robbing Peter to pay Paul.
 
To believe that this will occur is idealogical clap-trap, something
that Australian politicians seem to be engrossed in at the moment.
 
Point in case: Japan. When is it going to lift the barriers it places
on other countries selling them rice? When are they opening their
markets to "real" competition in automobiles? When are they going to
lower the prices of imported white-goods (refrigerators, dish-washers)
to their correct price? Now this situation is not unique to Japan, it
occurs all around the world. These are all impediments to "free trade"
- most will never be lifted.
 
>subsidies. Australian farmers are very upset about unfair American
>subsidies that keeps its price artifically low. I am just curious
>how Canadian farmers compete with American farmers in agricultural
>trades. Do they ask for equally heavy government subsidies?
 
Australian farmers are also "secretly" subsidised by the Rural
Adjustments Scheme, but certainly not to the extent of the USA or
Canada or any EC country.
 
Can't you remember 2 years ago (around Christmas time) when pork was
extremely cheap. This was Canadian pork practically dumped on us.
Apparently every aspect of "Farm to Freezer" was subsidised in one
form or another by their Government. This is how they "compete" with
America.
 
I don't believe "free trade" is necessary - it only seems necessary
so that big economic countries like the USA, Japan, EC can swallow up
competition in other countries.