Trade and Tariff Policies key to reversing relations- Keystone doesn’t actually matter.
The Vancouver Sun, 7-16-12 (“Wall rallies for better Canada-U.S. relations, decries policies of Obama administration” http://www.vancouversun.com/business/Wall+rallies+better+Canada+relations+decries+policies+Obama/6942604/story.html)
Premier Brad Wall has criticized U.S. President Barack Obama, saying recent American economic and energy policies are not good for Canada.
“People think in this country, perhaps they do, that the Obama administration is good for Canada,” Wall told reporters Monday at the Pacific Northwest Economic Region’s (PNWER) annual summit in Saskatoon. “The facts say something else.”
Wall used his keynote speech at the conference as a rallying cry for improved U.S. and Canada relations, while decrying U.S. policies he believes are hurting free trade.
“When there is a recession, the sabres of protectionism start rattling and that’s what we’ve seen stateside,” Wall told reporters after the speech.
Wall’s comments come weeks after an article in Foreign Affairs by Derek Burney, Canada’s former ambassador to the U.S., and Fen Hampson, a foreign policy expert at Carleton University, declared the bilateral relationship between the U.S. and Canada has sunk to its worst level in decades.
Wall didn’t go as far as Burney and Hampson, but he did not agree with David Jacobson, the U.S. ambassador to Canada, who responded to the article by saying U.S.-Canada relations have “never been better.”
“I think somewhere in the middle, but I think it should be better,” Wall said.
Like Hampson and Burney, Wall pointed to Buy American rules in the U.S. stimulus package, calling them “frustrating” because of the damage they are doing to trade among provinces, states and municipalities.
Wall also cited a $5.50 tariff on passengers who enter the U.S. by air or sea as an “irritant.”
As for the controversial Keystone XL pipeline, Wall believes it will go ahead regardless of who wins the U.S. presidential election.
Overview Buy American Provision could have serious implications on the economy.
Canadian Manufactures and Exporters, 6-25-12 (“Canada cannot tolerate new 'Buy American' amendment in Congress: CME”
http://www.cme-mec.ca/?action=show&lid=JCKNC-E742G-1W6JA&comaction=show&cid=M9D4U-BK1VE-UI6R6)
The Government of Canada must take immediate action to derail a new Buy American amendment expected to be introduced later this week in the United States Congress, and work towards a joint content rule for all future procurement spending, according to Canadian Manufacturers & Exporters (CME).
The provision will be attached to the 2013 funding bill for the US Environmental Protection Agency and, if passed, would apply to all water and wastewater projects encompassed under the bill, including those at the state level. More than $100 billion is currently available for related infrastructure initiatives; however, the amendment would require all projects use only US-made steel, iron and manufactured goods in the construction or maintenance process.
“This protectionist legislation sets a dangerous precedent at a time when neither country can afford it,” explains CME President & CEO, Jayson Myers. “We’ve been down this road before and know how dire the economic consequences can be on both sides of the border. Ottawa must take prompt and aggressive steps to deter the US from pursuing such harmful policy, and be ready to respond with reciprocal provisions for Canadian procurement opportunities.”
In 2009, US lawmakers passed the American Recovery and Reinvestment Act (ARRA), which contained a similar, sweeping Buy American provision. Although the goal was to spur growth, many US companies actually lost much-needed business, because they were unable to sell component parts to Canadian manufacturers shut out of ARRA-funded projects.
The latest amendment, meanwhile, is being proposed by Congressman Robert Anderholt of Alabama’s Fourth District. By contrast, Canada remains Alabama’s largest buyer of goods – comprised largely of manufacturing components.
“The US is our largest marketplace and business partner, and our relationship is unlike any other two nations in the world,” says Myers. “We don’t simply trade with one another; we build things together. And while our supply chains have created good-paying jobs and high-standard products on both sides of the 49th parallel, this new Buy American provision is putting our integrated economies at serious, unnecessary risk.”
Solves Relations Their 1ac evidence concludes that repealing the Buy America provision solves relations
Burney and Hampson, 12 (Derek H., and Fen Olser, Burney was Senior Strategic Advisor of Norton Rose, former Chief of Staff in the Office of the Prime Minister, and Canadian Ambassador to the US, Fen is the Chancellor’s Professor & Director of NPSIA, Professor of International Affairs , “How Obama Lost Canada,” Foreign Affairs, 6-21, http://www.foreignaffairs.com/articles/137744/derek-h-burney-and-fen-osler-hampson/how-obama-lost-canada)
Permitting the construction of the Keystone XL pipeline should have been an easy diplomatic and economic decisionfor U.S. President Barack Obama. The completed project would have shipped more than 700,000 barrels a day of Albertan oil to refineries in the Gulf Coast, generated tens of thousands of jobs for U.S. workers, and met the needs of refineries in Texas that are desperately seeking oil from Canada, a more reliable supplier than Venezuela or countries in the Middle East. The project posed little risk to the landscape it traversed. But instead of acting on economic logic, the Obama administration caved to environmental activists in November 2011, postponing until 2013 the decision on whether to allow the pipeline.¶ Obama’s choice marked a triumph of campaign posturing over pragmatism and diplomacy, and it brought U.S.-Canadian relations to their lowest point in decades. It was hardly the first time that the administration has fumbled issues with Ottawa. Although relations have been civil, they have rarely been productive. Whether on trade, the environment, or Canada’s shared contribution in places such as Afghanistan, time and again the United States has jilted its northern neighbor. If the pattern of neglect continues, Ottawa will get less interested in cooperating with Washington. Already, Canada has reacted by turning elsewhere -- namely, toward Asia -- for more reliable economic partners.¶ The United States' mistreatment of Canada extends beyond economic issues.¶ Economically, Canada and the United States are joined at the hip. Each country is the other’s number-one trading partner -- in 2011, the two-way trade in goods and services totaled $681 billion, more than U.S. trade with Mexico or China -- and trade with Canada supports more than eight million U.S. jobs. Yet the Obama administration has recently jeopardized this important relationship. It failed to combat the Buy American provision in Congress’ stimulus bill, which inefficiently excluded Canadian participation in infrastructure spending.
Ext. Hurts the Economy Buy American provision has the potential to destroy eight million jobs and MAJOR trade between the US and Canada.
The Canadian Press, 6-26-12 (“Obama jilting Canada, says influential U.S. policy journal”http://www.cbc.ca/news/politics/story/2012/06/26/pol-cp-obama-canada-jilted.html)
Two-way trade between Canada and the U.S. totalled $681 billion last year, and supports eight million U.S. jobs.
"Yet the Obama administration has recently jeopardized this relationship," the essay says, through the Buy American provision in its stimulus bill that prevented Canadian companies from bidding on infrastructure projects in the U.S.
Canadian economy key to global economy- multiple warrants
The Council of the federation 11(It is a new institution for a new era in collaborative intergovernmental relations. The Council of the Federation was created by Premiers because they believe it is important for provinces and territories to play a leadership role in revitalizing the Canadian federation and building a more constructive and cooperative federal system. “Canada in the global economy” http://www.councilofthefederation.ca/pdfs/COF_Canada_Global_Economy_Eng_final.pdf AB)
Premiers are working to build on Canada’s strong relative position coming out of the global recession. Provinces and territories are an integral part of Canada’s presence, activities and public image on the global stage, and Premiers are committed to advancing Canada’s trade and global interests through their international activities. Provinces and territories bring numerous strengths to the table. Premiers, Ministers, officials, businesses, and citizens from all provinces and territories are plugged into extensive global networks of decision-makers, business leaders, and innovators. These connections are crucial to developing partnerships for the future. Provinces and territories work closely with their business communities to help them compete effectively in global markets and build partnerships abroad through trade assistance and development programs, international offices, and international business missions. Provinces and territories also have a strong record of working bilaterally and multilaterally with sub-national governments, national governments, and international organizations around the world. This strategy is the latest example of the active role Premiers are taking through the Council of the Federation to promote Canada on the world stage. The Council of the Federation has consistently advocated free and fair global market access and improved trade opportunities in key markets for Canadian goods and services. Premiers have also worked to develop partnerships with the National Governors’ Association, the Council for the Australian Federation and through trade missions such as the Council of the Federation mission to China in 2008. Ongoing collaboration between provinces, territories, and the federal government on a shared strategic approach to the global economy is critical, and provinces and territories have numerous international strengths that can facilitate development of international trade and investment linkages. Provinces and territories are also taking on a more direct role with the federal government in negotiating international agreements, including a prominent position in the ongoing Canada-European Union negotiations towards a Comprehensive Economic and Trade Agreement (Canada-EU CETA) and in helping Canada conclude a Canada-United States Procurement Agreement. These developments are positive and strengthen Canada’s global economic competitiveness. Canada’s Premiers intend to build on this positive development by modernizing the intergovernmental cooperation process and establishing mechanisms that will strengthen the voice of the Canadian federation on the international scene. Premiers have committed to develop a framework agreement with the federal government concerning the role of provinces and territories in the negotiation of international trade agreements that concern matters under their jurisdiction. This framework would describe the opportunities for full provincial and territorial participation and include provisions concerning their involvement in the negotiation, implementation and governance of international trade agreements, as well as the conditions related to provincial and territorial commitment to support those agreements prior to their signing. Provinces and territories are willing to continue to do their part to create an environment that facilitates further development of trade and investment linkages around the world. With a large proportion of Canada’s gross domestic product linked to trade, international trade and investment are critical to the continued growth and success of the Canadian economy. Canada is fortunate to have strong connections and relationships throughout the world on which to build: • The United States and Canada share one of the most extensive bilateral relationships in the world and have successfully negotiated and implemented comprehensive trade and intergovernmental agreements to facilitate the movement of goods, services, investment, and people. Canada and the US have a number of highly integrated sectors and move over $1.3 billion worth of goods across the border daily. Canada’s exports to the US are equivalent to approximately one-quarter of Canadian GDP and the US receives roughly 75% of our exports and supplies more than 50% of our imports. It is estimated that one in seven Canadian jobs is related to trade with the US1. Direct investment flows between Canada and the US are also extensive. However, trade and direct investment figures do not fully capture the integrated nature of supply chains between Canada and the United States as it is estimated that over one half of manufactured products imported from Canada by the US are intermediate inputs used by US companies to produce other goods and provide services. Canada also has long-established and growing relationship with Mexico and with emerging economies throughout the Americas • Canadians have deep historical connections with Europe, and the ongoing federal, provincial and territorial work to develop a Canada-EU CETA paves the way to an expanded relationship in the future. A successful agreement would be the first of its kind, as it encompasses more sectors than a traditional free trade accord, and could greatly enhance the relationship. The EU is currently the largest single market in the world, with just over 500 million consumers. It is also the second largest source of foreign direct investment (FDI) in Canada, with the stock of FDI from the EU amounting to $164 billion at the end of 2009. In 2009, the stock of Canada’s direct investment in the EU totalled $149 billion. The EU is the destination of 25% of Canadian direct investment abroad. A joint Canada-EU study estimates that by 2014 there will be a $12 billion positive economic impact for Canada and $18 billion for the EU. • Canada and Asia also have strong and growing connections to build upon. These include expanding economic connections reflected by trade and investment flows and vibrant and diversified gateway infrastructure building out from world-class airports, ports and transportation networks with the capacity to move people and goods to and from Asian markets. Canada has strong “people connections” through Canada’s extensive student, skilled-worker and immigration flows from Asia and through its diverse, globallyconnected population, including up to a half million Canadians living, studying and working in Asia. For a trade- and investment-dependent country like Canada, Asia represents an enormous opportunity to enhance its future prosperity. There is a significant shift in the global economic “centre of gravity.” China has now surpassed Japan as the second-largest economy in the world. The International Monetary Fund has projected that within five years China may overtake the US in real purchasing power. Underlying this economic shift are changing trends in population growth. Europe and North America had 17% of the world’s population in 2000, but are projected to have only 13% in 20502 due to slower population growth
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