Supply Management on Canadian Steel, Canada to impose quotas and tariffs to Steel

This is where tariffs make sense, many of you know I’m not against tariffs, what I am against is trilateral trade agreements, because in this instance it’s Mexico that is taking issue with Canada because under our trade trilateral trade deal with Mexico what Canada is doing is breaking the rules. Canada has always broken and bent the rules when we’ve done trade deals with other countries, it’s something we do because other countries do it too.

 

Canada to impose steel safeguards, including quotas and tariffs, starting Oct. 25

A lot of people forget that a lot of the policies Donald Trump is implementing for America already exists in abundance in other countries namely Canada. Trump’s immigration changes mirror Canada’s current immigration policies, Canadian protections and our tariffs on other countries have served our country well, the real problem and actually the only problem in Canada economically stems from Pierre Elliot Trudeau. Pierre Trudeau’s socialist Canada is a sinking ship, there are a bunch of little holes in the Canadian ship and what’s been happening since Pierre Trudeau left office is all the other Prime Ministers have been trying to keep Pierre Trudeau’s socialist dream afloat.

So when smart economic moves are made, other sectors suffer, you have to understand that once you socialize an entire industry it’s only natural that other industries will want similar protections. So in this instance, the problem Canada has is that other countries want to use Canada as a port of entry into the United States, Canada has to put up a barrier, however, Canada wouldn’t have to put up a barrier if Canada had already put tariffs on currency manipulators. The reason Canada can’t put tariffs on Currency manipulators is that Canada is a currency manipulator.

Interest rates in Canada shouldn’t be at 1.5% (as of October 1, 2018,) but they are because our current economy is designed to benefit off of the United States, so because we as Canadians have lost the moral high ground we have to invent ways to keep our corporations and unions happy while making the United States happy as well. The reality is a lot of this Steel that would be heading to Canada wouldn’t be heading to Canada if we hadn’t been manipulating our currency. We now have to add supply management to our Steel industry, so the price of Steel in Canada could potentially go up and up for the foreseeable future.

What is a moral tariff?

A tariff means that you have to compete fairly, the moral tariff means that you build up your own country before you come and invade mine. If as an example Canada and Brazil were selling the exact same “computer widget” however because Brazil’s currency was lower than Canada’s in order for Brazil to sell into the Canadian market the purchaser would have to pay a tariff based on the Global Market Demand, that would be calculated in Canadian dollars. So if the price for the Computer widget was $1 – $2 the tariff charged would be somewhere in the middle, it’s hard to imagine now but, there would be an entire portion of Government specialized to particular countries, this would also be a little bit easier now with automation but you get the gist of it.

Now, in my Canada, Minimum wages don’t exist, which why you could price raw materials by their actual market value, how a country prices their labor is up to them, but their currency would be based on how open their market was to the world. This is why bilateral trade deals work a lot better than trilateral or multilateral trade deals because when you designated individuals who specialize in bilateral trade with other nations, these dumping problems are solved before their started. A country couldn’t use Canada has a dumping ground for U.S bound shipments because they would have already known that would have had to have a bilateral trade deal with us in place.

If their trade with Canada was based on barter transactions as opposed to a currency valuation, it wouldn’t be profitable for any company or country to use Canada as a dumping ground. Bilateral trade deals with clauses in them prevent dumping from happening. It will take an economic collapse for the world to learn this stuff the hard way.

Interesting times ahead.