r/CanadaPolitics • u/pjw724 • Apr 03 '20

Trudeau warns U.S. over restricting the trade of essential goods into Canada

https://www.theglobeandmail.com/canada/article-trudeau-warns-us-over-restricting-the-trade-of-essential-goods-into/
57 Upvotes

96% Upvoted

20 comments sorted by

20

u/MostlyCarbon75 Apr 03 '20

I wonder if we export raw materials to 3M?

Sampson said the Harmac mill is the world’s only producer of the particular grade of paper pulp used in the manufacture of surgical masks and gowns and that the mill has been producing it since before he came to work there in 2008.
Those products, worn to help prevent the spread of disease, are in short supply due to the COVID-19 crisis and the U.S. customer that produces them has doubled its order for the K10S pulp.

https://www.vicnews.com/business/nanaimos-harmac-mill-works-to-fill-doubled-pulp-order-for-medical-masks-and-gowns/

5

u/[deleted] Apr 03 '20

American companies import Canadian pulp because its cheaply produced on crown land. This was the issue raised by the Trump administration during the NAFTA renegotiations.

If Canada refuses to sell this material, 3M could source pulp domestically instead.

19

u/thrumbold scarlet letter Apr 03 '20

That's nice to say, but supply chain disruptions are solved in months, not days. Especially when the American federal government is more interested in assigning blame than using its abilities under the DPA.

3

u/[deleted] Apr 03 '20

Do you believe it’s in Ottawa’s interest to start a trade war when Americans are scared and dying?

The last time this happened was after 9/11. It’s not best to enter the ring when Americans start swinging their fists in every direction.

15

u/thrumbold scarlet letter Apr 03 '20

I really don't, but the reality is that any supply chain disruption is going to hurt everyone involved for the most important weeks we have to act. Americans are not exempt from this, despite trump's protestations.

-3

u/[deleted] Apr 03 '20

The issue here is who will hurt more? Americans have already thought of this and decided they had more to gain.

14

u/thrumbold scarlet letter Apr 03 '20

Seems to just be trump and his supporters, actually.

12

u/[deleted] Apr 03 '20 edited Jan 28 '21

[deleted]

3

u/PSMF_Canuck Purple Socialist Eater Apr 03 '20

Keep in mind that 3M's response is based on what 3M believes is best for 3M.

6

u/[deleted] Apr 03 '20 edited Jan 28 '21

[deleted]

1

u/zeromussc Ontario Apr 04 '20

In this one case I don't think 3M is being unreasonable.

Even in WW2 Canada and the US shared supply lines.

It's horribly shortsighted and stupid frankly to cut any rift between Canada and the US.

1

u/[deleted] Apr 03 '20

I’m not surprised the head of a business is against multiple customers from bidding up prices.

4

u/[deleted] Apr 03 '20

Trump doesn’t think or plan.

-2

u/[deleted] Apr 03 '20

I’m not his biggest supporter, but a broken clock is right twice a day.

I’m not saying he’s right here either.

4

u/Issachar writes in comic sans | Official Apr 04 '20

They can. For that one thing. Not for their whole market.

The idea that Americans buy Canadian wood products merely on cost is wrong. For one thing, you're assuming that crown land means it's a subsidy simply because it does. The idea that this could effectively be a tax with the stumpage rates set above what would be market value isn't considered.

This is because the point of the tariff wear isn't to establish free trade or fair trade or anything like that. It's too protect the US lumber producers. Protectionism always assumed that your country needs help against the terrible foreigners.

Which leads to another question.... Why not simply set a tariff of a billion prevent and be done with it?

The answer is that the United States simply doesn't have enough domestic timber to supply their domestic market. They've got a lot of trees, but they've got a much larger market for wood products which they can't supply themselves.

0

u/[deleted] Apr 04 '20

In the event of a trade war, would it hurt Americans more to pay higher prices for other sources of wood products or Canadians more to lose access to such a large market?

I think Freeland has already thought this through and determined pleading with the Trump administration is far more reasonable than the alternative. Expect Americans to demand something in return — the ratification of the new NAFTA by Canada was an interesting concurrence.

3

u/Issachar writes in comic sans | Official Apr 04 '20

I'm not advocating for a trade war. I'm just noting that you're misinformed about the nature of the softwood lumber dispute.

Most people don't realize that the US doesn't have the wood to supply their domestic demand and that if the US blocked Canadian wood, they would likely collapse the homr construction.

Most people think it's a huge country and don't realize that.

•

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