From: (Gerry Gryschuk)
Subject: Re: Plan S -- Quebec separation
Organization: University of Saskatchewan
Date: Sun, 8 Nov 1992 08:16:59 GMT

From article <schuck.721092172@sfu.ca>, by schuck@fraser.sfu.ca (Bruce Jonathan Schuck):
> robinson@mdivax1.uucp (Jim Robinson) writes:

>>Bruce Jonathan Schuck (schuck@fraser.sfu.ca) wrote:

>>>Do you think that BC will accept for one second Quebec keeping that
>>>quota? Ha! Not a chance. Quebec will get 0 quota and the rest will be
>>>distributed creating wealth and jobs in the dairy regions of Canada.
> 
>>Preferential treatment is different from free trade. The example above
>>falls into the former camp, and I don't believe anyone was arguing for
>>preferential treatment for Quebec should it separate. What I would argue
>>for is a *mutually* beneficial trade arrangement a la the FTA.
> 
> Ok. How about a *free trade* issue. [This one has little to do with BC]
> 
> Quebec makes auto parts and sells them to Ontario and to the US to be
> used in Cars with no duty because of the FTA.
> Quebec will not automatically become part of the FTA, it may take
> years for such a thing to be negotiated, just as the FTA took years
> and the NAFTA took years.
> 
> 1) Quebec auto parts are now competing with Ontario auto parts which
> get put into US and Canada cars. Do we let this continue or do we
> exclude Quebec with high tariffs and keep the jobs in Ontario.
> 
> 2) Quebec parts in Ontario cars will count as foreign parts. We all
> know that cars made in Ontario with too many foreign parts get big
> duties slapped on [ex. -- Japanese parts] Do we continue to buy parts
> from Quebec and jeopardize duty-free status for Ontario cars or do we
> slap a big duty on Quebec parts to keep duty-free status and keep jobs
> in Ontario.
> 
> The above example is applicable to *all* manufactured items in Ontario
> destined for US markets.
> 

First Bruce let me say that unlike your other posts on the issue this
actually shows some thought went into forming it.

If Quebec does decide to seperate I highly doubt they would become a
sovereign nation the day after the referendum was held. The whole process
of seperation would take years of negotiations to decide who gets what
and why. Until that whole deal was settled it would only make sense to
allow Quebec to stay as part of the country, in that way all treaties,
agreements and what not signed onto by Canada would be applicable to them as
well as the rest of us.

Furthermore when it came to negotiations of trade amongst the new sovereign
nations I highly suspect that both the US and Mexico would have to have
representatives present in order that NAFTA be acknowledged as the main
rules of trade amongst countries in North America otherwise Quebec would
end up being in a very poor position.

In fact it seems to me that trade issues would be the least of the problems
to be worked out compared to things like what parts of the current province
of Quebec remain Quebec's, how much of the national debt they should assume
etc. etc.

>>But this is a separate
>>issue from a free trade agreement. Unless I am mistaken, Bruce has been
>>arguing for little or *no* trade with a separate Quebec, and it is that
>>notion that I think is not in either Quebec's or CSQ's best interests.
> 
> Since our biggest trading partner is the US, it would be insane to
> allow Quebec free access to our markets, thereby jeopardizing
> *Canadian* jobs. Why should Canadians buy Quebec products when
> buying Canadian products would produce new jobs in Canada.

Oh maybe because they're produced cheaper and better maybe? As long as
free trade goes both ways the results would be advantages to everyone
in the long run.

> 
> Why give a *competitor* free access into our markets?
> 
> What's in it for us? 
> 

Greater innovation. More jobs producing products in areas where we truely are
better. Generally cheaper commondities due to more competition.

Protectionism generally breeds an industry which is stagnate, less willing
to innovate simply because they don't have to, higher prices for the really
good quality equipement that comes in from out of the country.

Simply put I can only see good things coming from freer trade and bad
things coming from protectionism.
--
Gerald Gryschuk            Saskatoon,Saskatchewan = a place with 9 months
gerry@sask.usask.ca           of hockey and 3 months of poor skating.
Go Habs!!!		              (The Bum rules!!!)
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