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Free Trade at 3O Renewing NAFTA at 25 www.policymagazine.ca September—October 2017 1 Canadian Politics and Public Policy Free Trade at 3O Renewing NAFTA at 25 $6.95 September/OctoberVolume 5—Issue 2017 5 Moving Canada’s Grain Committed to getting farmers’ grain to market Over 19MMT $500M 70% crop-to-date shipped, investment in Western Canadian of CN’s car supply for western 10% more than the branch line network over grain is under commercial 3-year average the last 6 years contracts with reciprocal penalties www.cn.ca/grain @CNRailway Peerless Clothing is the largest supplier of men’s and boy’s tailored clothing to most major department stores and speciality retail- ers in both the United States and Canada. Proudly Canadian The largest manufacturer of men’s and boy’s tailored clothing in the world. www.peerless-clothing.com 1.800.336.9363 PDF/X-1a:2003 WHY DON’T YOU THINK OUTSIDE THE CAR? When you Maximizes Reduces Better choose your your carbon value for VIA Rail for productivity footprint taxpayers business travel, With Wi-Fi, power outlets, Making the smart choice It’s good for your you unlock a use of your cellphone and today helps contribute bottom line and comfy seats—you might to a greener tomorrow. Canada’s, too. lot of great just like the train more benefits: than the office. Route # of daily Distance Productive Non-productive Cost of Cost of Taxpayer savings departures train time car time* travelling travelling by by choosing by car** train (as low as) train travel*** Ottawa Toronto Up to 18 450 km 4 h 23 min 4 h 34 min $467 $44 $423 Ottawa Montréal Up to 12 198 km 1 h 55 min 2 h 27 min $227 $33 $194 Ottawa Québec City Up to 8 482 km 5 h 23 min 4 h 39 min $488 $44 $444 Toronto Montréal Up to 13 541 km 5 h 25 min 5 h 30 min $562 $44 $518 Government of Canada employees enjoy a 10% discount on personal travel booked directly with VIA Rail. Government of Canada employees can take advantage of specially negotiated rates for business travel available through the Shared Travel Services HRG Portal. The discount does not apply to Prestige class or Escape fares. * 30 minutes was added to the total travel time by car in order to account for traffic and bad weather en route. ** The total cost to the taxpayer of travelling by car is calculated based on the following formula: $ cost of travelling by car (Treasury Board kilometric rate for Ontario of $0.55/km for car travel by a government official X total distance travelled) + $ employee-related cost (average hourly rate of $48/h for a government employee, based on a salary of $100,000 per year including employee benefits X travel time) = $ total cost to taxpayer. *** The value of travelling by train is calculated based on the following formula: $ cost of travelling by car – $ cost of travelling by train = $ taxpayer savings. Fares and conditions are subject to change without notice. TMTrademark owned by VIA Rail Canada Inc. 2100, rue Drummond Cossette Montréal (Québec) H3G 1X1 14/06/17_15:27 client : VIA Rail Canada nº 111146783-1 format pap : 100 % @ 300 dpi description : Magazine Nº VIA 6264-17 trim — : 8,5” x 11” publication : POLICY MAGAZINE – EN safety - - - : 7,5” x 10” (0,5 po) conseillère : Marine F. bleed — : 8,75” x 11,25” (0,125”) infographiste : Eric L. visible : — nom fichier : 111146783-1_VIA_6264-17_GovAd_Policy-En-Rev1.indd Check couleur : C M J N Les sorties laser ne reflètent pas fidèlement les couleurs telles qu’elles paraîtront List sur le produit fini. Cette épreuve est utilisée à des fins de mise en page seulement. 5 In This Issue 6 From the Editor / L. Ian MacDonald Free Trade at 30, Renewing NAFTA at 25 7 Q&A Canadian Politics and Free Trade at 30: A Conversation with Brian Mulroney Public Policy 12 Justin Trudeau Verbatim: The Elephant and the Moose EDITOR 17 Frank Graves L. Ian MacDonald North America at the Crossroads: Inward or Outward? [email protected] 20 Andrew Scheer ASSOCIATE EDITOR The Conservatives on NAFTA: Here to Help Lisa Van Dusen [email protected] 23 Michael Gregory A Fine Balance: Trade Deficits and the New NAFTA CONTRIBUTING WRITERS Thomas S. Axworthy, 26 Paul Frazer Andrew Balfour, Yaroslav Baran, Letter From the Swamp: NAFTA is Dead; Long Live NAFTA Derek H. Burney, Catherine Cano, Meredith Lilly Margaret Clarke, Celine Cooper, 29 The NAFTA Road Ahead: Why Canada Must Be in the Fast Lane Susan Delacourt, Daniel Gagnier, Martin Goldfarb, Patrick Gossage, 32 John Delacourt Frank Graves, Brad Lavigne, Getting to NAFTA: The Strategic Principles Determining Kevin Lynch, Jeremy Kinsman, Canada’s Approach Andrew MacDougall, Jeremy Kinsman Carissima Mathen, Velma McColl, 35 David McLaughlin, David Mitchell, Negotiating With an Elephant: NAFTA’s Not for Sissies Don Newman, Geoff Norquay, 39 Sarah Goldfeder Fen Osler Hampson, Robin V. Sears, Getting to Yes: Why Fast Track Matters Gil Troy, Jaime Watt, Anthony Paul Moen Wilson-Smith 42 Trade Remedies Under NAFTA: Still Time for Canada to WEB DESIGN Pivot to Offence Nicolas Landry [email protected] 45 Robin V. Sears What a Difference a Decade Makes: Free Trade at 30 SOCIAL MEDIA EDITOR Grace MacDonald 49 Thomas d’Aquino [email protected] NAFTA 2.0: Carpe Diem GRAPHIC DESIGN & PRODUCTION 52 Perrin Beatty Monica Thomas Talking With Americans [email protected] 54 Jean-Jacques Ruest Policy Rail as the Transportation Hub of NAFTA: A Compelling Case Study Policy is published six times annually 57 Book Excerpt: Alvin Cramer Segal by LPAC Ltd. The contents are Winning Canadian Apparel in the FTA copyrighted, but may be reproduced Column / Don Newman with permission and attribution in 60 print, and viewed free of charge at Can NAFTA Survive Trump? the Policy home page at www.policymagazine.ca. Canada and the World Printed and distributed by St. Joseph 61 Donald K. Johnson Communications, 1165 Kenaston The Fiscal Update: A Golden Opportunity to Help Canada’s Charities Street, Ottawa, Ontario, K1A 1A4 63 Thomas S. Axworthy Available in Air Canada Maple Leaf We vs. Them: The Politics of Inclusion Versus the Lounges across Canada, as well Politics of Resentment as VIA Rail Lounges in Montreal, Ottawa and Toronto. 67 David Mitchell Now available on PressReader. Hanging by a Thread: British Columbia’s NDP Minority Government Special thanks to our sponsors and advertisers. Cover photo: PMO, G7 Summit in Toronto, facebook.com/ Connect with us: @policy_mag June 1988. policymagazine September/October 2017 6 From the Editor / L. Ian MacDonald Free Trade at 30 Renewing NAFTA at 25 elcome to our special is- but with China, with whom the U.S. an optimist on the NAFTA talks, for sue marking 30 years since has a deficit of nearly $350 billion. which he writes that Canada is very W the negotiation of the well prepared. Canadian Chamber of Canada-U.S. Free Trade Agreement, n a letter from Washington, for- Commerce President Perrin Beatty and 25 years since a trilateral deal mer Canadian diplomat Paul shares the views of the business com- was struck to include Mexico, pro- I Frazer wonders about the poten- munity, while CN Chief Marketing ducing the NAFTA. tial impact of Trump tweeting on the Officer Jean-Jacques Ruest writes that talks. “Presidential tweets,” he notes, We begin with a Q&A with Brian Mul- railways are the transportation hub “can put every aspect of the NAFTA roney, the architect of the Canada- of NAFTA. negotiation to the test of public scru- U.S. FTA in 1987 and NAFTA in 1992. tiny.” Carleton University’s Meredith In an excerpt from his new memoir, We met at the former prime minister’s Lilly looks at the politics and time- My Peerless Story, Alvin Cramer Segal Montreal law office as the NAFTA lines for getting a new deal done, shares the inside story of how the Ca- talks were underway in August. Mul- notably the Mexican elections next nadian apparel industry, and particu- roney has been advising Prime Min- July, and the U.S. mid-terms next larly Peerless Clothing, became big ister Justin Trudeau, Foreign Affairs November. Ensight Canada’s John winners under the Canada-U.S. FTA Minister Chrystia Freeland and senior Delacourt, former director of com- and, later, the NAFTA. Finally, colum- Canadian officials on NAFTA, and munications for the Liberal Research nist Don Newman offers his take on he’s been impressed by their focus Donald Trump and the NAFTA talks. and management of the file, particu- Bureau, looks at how Team Canada larly the relationship with mercurial has prepared for the talks. n Canada and the World, phi- U.S. President Donald Trump. Veteran foreign affairs hand Jeremy lanthropist and former invest- In a Verbatim, we offer Prime Minister Kinsman has been dealing with the I ment banker Donald K. Johnson Trudeau’s speech to the U.S. National Americans for decades, and reminds writes that the fall fiscal update of- Governors Association in mid-July, in us of the checks and balances in the fers the Trudeau government and Fi- which he reminded them that Canada U.S. system. “The division of pow- nance Minister Bill Morneau “a gold- is the largest customer of two-thirds ers means that American negotiators en opportunity” to “tweak the rules of American states, and that “Canada aren’t free agents,” he writes. “They for charitable donations” by exempt- buys more from the U.S. than China, need to answer to Congress as well as ing the sale of private companies and Japan and the UK combined.” to the president.” Earnscliffe’s Sarah real estate from the capital gains tax Goldfeder, a former adviser to two if the proceeds are donated to a regis- Pollster Frank Graves provides in- U.S.
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