Justin Trudeau appears to believe that the protectionist sentiments being seen in the US and Europe are unlikely to spill over into Canada. Really? The media regularly run columns from the likes of Linda McQuaig and the self-appointed Council of Canadians (aka Maude Barlow) pointing out the failings of the NAFTA agreement and warning of catastrophe in the event that the either the TransPacific Partnership (TPP) or the Canada-Europe Trade Accord (CETA) ever comes into effect.
For the most part, commentators like McQuaig and Barlow are worried about the investor protection aspects of deals like TPP or CETA, rather than the trade aspects per se. Still, there's plenty of evidence that NAFTA played a major role in accelerating the decline of Canada's manufacturing sector, a decline which shows no sign of slowing even with the Canadian dollar way below its cyclical highs. Either TPP or NAFTA would inevitably mean more of the same.
The UK's Brexit vote has put the CETA deal in doubt, and TPP seems to be dead on arrival, with both US presidential candidates seemingly opposed to it. Blind faith in the benefits of globalization is in short supply these days, except, it seems, in Justin Trudeau's government. But if the rest of the world is about to start playing hardball, Trudeau would be well advised to start thinking hard about just what that means for a country as trade-reliant as Canada.
UPDATE, September 6: This breathless scare story by George Moonbat in the Guardian shows clearly why Justin Trudeau should not be counting his chickens just yet.
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