The Ottawa Citizen Thursday 10 April 1997
CHRÉTIEN CALLS FOR GLOBAL FREE TRADE
PM explains radical conversion
Julian Beltrame, The Ottawa Citizen
WASHINGTON -- Prime Minister Jean Chrétien gave his most detailed
explanation to date of his conversion from free trade critic to unabashed
enthusiast yesterday in a free-wheeling discussion of philosophy and policies
that will shape his upcoming re-election bid.
Speaking to about 800 people at the National Press Club, Mr. Chrétien
appeared to be road-testing many of the themes he will flesh out in the
campaign he is expected to launch soon.
"I was skeptical like many others about the free trade agreement,
(particularly) when it was a bilateral one with America. We're afraid of you
guys, you're big and we're small," he said.
But the North American Free Trade Agreement has brought massive
economic benefits for both Canada and the U.S., he said, adding that global
free trade will be the engine of economic growth.
Mr. Chrétien pointed out that two-way trade between Canada and the
U.S. increased 45 per cent during the past four years and many Canadian firms
have become competitive world-wide as a result of the opportunities created
by the global economy.
"Of course, there is some disruption. Some factories were affected in
my own district. It's inevitable, but at the same time others have replaced
them," he continued. "Some go and some come, but the best survive and you
become more competitive."
Mr. Chrétien's comments here appeared designed to anticipate attacks
from Conservative Leader Jean Charest that he and the Liberal party once
opposed the free trade agreement with the U.S.
The Tories issued a list of questions for the prime minister yesterday in
which Mr. Chrétien's flip-flop on the issue is called "opportunistic," though a
"good thing."
Mr. Chrétien told his Washington audience that his trade missions to
Asia taught him to be confident that Canadians will prosper as the country
moves to expand its trading relations in Latin America and the Asia-Pacific.
"I'm not pessimistic about the 21st century because you have one billion
200 million people in China and Š they will develop a middle class; they will
need to buy all sorts of products and both you and I will be there selling.
"We (Canada) can sell them North American technology even in
French."
Mr. Chrétien said establishing trade and political links with Asian
countries is the biggest challenge facing Canada and the U.S. He noted that
already five of Canada's 10 largest trading partners are in Asia.
Mr. Chrétien also had assurances for the 600,000 anglophones living in
Quebec, urging them not to abandon the province in fear, saying their rights
will be protected by the federal government.
"Quebec is their province and they should stay there," he said. "We will
use the Canadian Constitution to protect their rights."
He said the majority of Quebecers will continue to reject the separatist
option if they are asked a direct question -- "Do you want to separate from
Canada?"
Under the guise of underlining the differences between Canada and the
U.S., the prime minister bragged that Canada had gone from having the worst
fiscal record next to Italy prior to his coming to office, to the best with a
deficit of less than two per cent of gross domestic product. Canada would have
a budget balance in 1998-99 fiscal year if it calculated deficits like the U.S., he
said.
But the critical test for governments are what they do with the freed-up
funds that once went to debt servicing, he stressed.
"I believe that governments in Western countries will be judged not only
on their ability to get their fiscal house in order, but also on the priorities they
choose once they have fiscal room to act."
He said his government's priorities are alleviating child poverty,
allocating resources to research and development and infrastructure to create
jobs, and modernizing "our cherished public health-care system."
Asked to comment on his friendly relationship with U.S. President Bill
Clinton in view of his charge that former prime minister Brian Mulroney was
too cozy with past U.S. president's, Chretien gave short shrift to the
suggestion.
"Good and not cozy," he responded. "Good and not cozy."
And in an effort to draw a sharp line of distinction between Canada and
the U.S., the prime minister challenged U.S. politicians who continually bad-
mouth the United Nations.
"I will take the UN in Montreal tomorrow," he said, pointing out the
world body brings more economic benefits to its home base New York than
the $1.4 billion in back dues the U.S. Congress refuses pay. The remark drew
wide applause and laughter.
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The Vancouver Sun Thursday, April 10, 1997
NDP POISED TO ALTER POSITION ON NAFTA
Peter O'Neil, Sun Ottawa Bureau
OTTAWA --The federal New Democratic Party is on the threshold of
abandoning its long-held policy that the North American Free Trade
Agreement should be scrapped, sources say.
The party's election platform committee will unveil proposal Friday that
include a more moderate position on Canada-U.S. free trade than was taken in
the 1988 and 1993 election campaigns. Instead of fighting to kill the deal, the
proposals would have the party call for changes to protect workers, the
environment and social programs.
"We support international trade agreements that benefit Canadian families and
not just corporations," one party official said.
"This may be viewed as a shift as it is not outright opposition to the
agreements."
The proposals say the party should fight for forceful labor and environmental
standards, stricter measures to prevent corporate tax evasion, and new controls
to limit speculative currency trading.
Delegates to the convention will have the opportunity to debate and change the
document before it becomes NDP leader Alexa McDonough's campaign
blueprint, but the new position reflects the views of NDP stalwarts such as
Dave Barrett, the former B.C. premier and ex-federal MP who championed
the anti-free trade campaign. He has now accepted that NAFTA is here to
stay, and is devoting time as an academic to propose progressive changes to
trade deals.
Party officials expect spirited debate over trade as well as the party's policy on
the goods and services tax.
While many prominent party members have advocated an "axe the tax"
position, the platform committee is calling for a go-slow approach that would
begin by phasing out the tax for books, magazines and family essentials like
clothing.
Another major shift in party thinking reflected in the proposals is its modes,
survival-oriented tone. The party says it will play an advocacy role in fighting
for its policies, rather than suggest it could implement is promises as an
elected NDP government.
Former federal leader Ed Broadbent campaigned in 1988 on the basis that the
NDP was fighting to form a government, as did his successor Audrey
McLaughlin -- whose war cry was "AM for PM" -- in the disastrous 1993
campaign.
But McDonough, who doesn't have a seat in Parliament and has a caucus of
only nine MPs, is campaigning only to gain at least 12 seats (required to be an
official party in the Commons). At best, the party hopes for slightly more than
the record of 44.
The party's campaign will therefore focus on pockets of strength in B.C., the
Prairies, parts of Ontario and in McDonough's home province of Nova Scotia.
Friday's platform will reflect the focus on regions like B.C., highlighting
positions such as the demand that government "refuse to allow giant
corporations to dominate the fishing industry" to the detriment of small coastal
communities.
The platform document also suggests the NDP advocate:
-- An excess corporate profit tax that will generate $400 million annually for
a national investment bank that lends to Canadian companies to promote
community economic development;
-- A Community Reinvestment Act that obliges deposit-taking institutions to
reinvest money in the communities where they are located, as is done in the
U.S.
-- A reversal of liberal cuts to health care and post-secondary education,
expanded AIDS research, the replacement of Canada's drug patent law, and
an expansion of Medicare to cover pharmacare
-- A full-employment strategy that sets specific targets and requires the
government and the Bank of Canada to make job creation their top priority.
