Does Canada need trade adjustment assistance?

2017 ◽  
Vol 72 (1) ◽  
pp. 91-110 ◽  
Author(s):  
Dmitry Lysenko ◽  
Lisa Mills ◽  
Saul Schwartz
Keyword(s):  
Federal Government ◽  
Ad Hoc ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Policy Area ◽  
Trade Adjustment Assistance ◽  
Government Aid ◽  
Canadian Federalism ◽  
Trade Adjustment ◽  
History Of

Trade adjustment assistance (TAA) is government aid to those affected by trade agreements. We review the history of TAA in Canada and ask whether Canada needs to reintroduce it in response to the recent intensification of trade negotiations. In light of the compensation offered by the federal government in connection with the Canada–European Union Comprehensive Economic and Trade Agreement (CETA), we examine how TAA fits in with the evolution of Canadian federalism in the trade policy area. Based in part on interviews with provincial trade negotiators, we conclude, first, that the compensation is an outcome of Canadian federalism. Second, we argue that while there is no reason to reintroduce a federal TAA program for workers, compensation for provinces is necessary to facilitate their cooperation with the implementation of trade treaty provisions. Third, we suggest that a more transparent rationale for such compensation would be superior to the ad hoc compensation observed in CETA.

The challenges of federalism to Canada’s international trade relations: The Canada–European Union Comprehensive Economic and Trade Agreement

2017 ◽  
Vol 72 (1) ◽  
pp. 111-119
Author(s):  
Ali Tejpar
Keyword(s):  
European Union ◽  
International Trade ◽  
Trade Agreement ◽  
Trade Agreements ◽  
International Trade Agreements ◽  
Implementation Processes ◽  
Trade Relations ◽  
International Model ◽  
Canadian Federalism ◽  
Canadian Context

As one of the first “second-generation” free trade agreements that address indirect and non-tariff barriers, the Canada–European Union Comprehensive Economic and Trade Agreement (CETA) is likely to serve as an international model. CETA, however, highlights significant challenges for Canadian federalism in both the negotiation and implementation processes of this and any such future trade agreements. While the inclusion of sub-federal governments allows for provinces/territories to help shape the provisions that fall within their jurisdictions, this paper argues that subsequent challenges arise in conveying a unified Canadian commitment to implement the agreement. Overall, the CETA negotiations demonstrated the significant institutional weaknesses of current federal–provincial/territorial relations with respect to international trade agreements. In the Canadian context, this suggests a need for “summit federalism” to ensure that all federal–provincial/territorial governments align their terms and interests and convey a unified commitment to fulfilling Canada’s current and future international trade agreements.

Reforms of Korea's Trade Adjustment Assistance Program for Its Bilateral Free Trade Agreements with the European Union and the United States

2011 ◽  
Vol 10 (1) ◽  
pp. 32-55 ◽  
Author(s):  
Inkyo Cheong ◽  
Jungran Cho
Keyword(s):  
United States ◽  
Free Trade ◽  
Structural Adjustment ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
The United States ◽  
The European Union ◽  
Trade Adjustment Assistance ◽  
Assistance Program ◽  
Trade Adjustment

The Korean government introduced the trade adjustment assistance (TAA) program to facilitate structural adjustment under the implementation of its free trade agreements (FTAs). One big problem with the TAA program is that its criterion for eligibility for TAA support requires a 25 percent decrease in sales volume, and this does not reflect firms' business realities. The TAA program should be reformed to reflect that the TAA is a quid pro quo for the implementation of FTAs with large economies such as the United States and the EU.

The Politics of Trade Adjustment Versus Trade Protection

2020 ◽  
pp. 001041402095768
Author(s):  
Sung Eun Kim ◽  
Krzysztof J. Pelc
Keyword(s):  
The United States ◽  
Economic Effects ◽  
Trade Protection ◽  
Trade Adjustment Assistance ◽  
Trade Shocks ◽  
Political Effects ◽  
Trade Adjustment ◽  
Antidumping Duties ◽  
History Of ◽  
Trade Remedies

The United States’ Trade Adjustment Assistance (TAA) program seeks to help workers transition away from jobs lost to import competition. By contrast, trade remedies like antidumping seek to directly reduce the effect of competition at the border. Though they have very different economic effects, we show that trade adjustment and protectionism act as substitutes. Using the first geo-coded measure of US trade protectionist demands, we show that controlling for trade shocks, counties with a history of successful TAA petitions see fewer calls for trade protection. This effect holds when we confine our analysis to the steel industry, a heavy user of antidumping duties. And though they are both means of addressing import exposure, the two policy options have distinct political effects: in particular, successful TAA petitions carry a significant electoral benefit for Democratic candidates. Greater recognition of the substitutability of trade compensation and protectionism would improve governments’ response to import exposure.

Federalism and Liberalization: Evaluating the Impact of American and Canadian Sub-federal Governments on the Negotiation of International Trade Agreements

2017 ◽  
Vol 22 (2) ◽  
pp. 259-284 ◽  
Author(s):  
Christopher J. Kukucha
Keyword(s):  
International Trade ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Trade Agreements ◽  
The United States ◽  
Policy Area ◽  
International Trade Agreements ◽  
American States ◽  
Canadian Provinces ◽  
The Impact

This article argues that federal systems in Canada and the United States allow for the successful pursuit of sub-federal offensive and defensive priorities in the negotiation of international trade agreements. It is also clear, however, that the coercive American intrastate system limits the relevance of American states in this process, especially when compared to Canada’s relatively cooperative interstate model. Canadian provinces and territories also benefit from ideational considerations, including policy expertise and trust-ties with federal negotiators, which further strengthens sub-federal legitimacy and influence in this policy area. This study evaluates the incremental and significant impact of Canadian and American sub-federal governments across a number of sectors on the negotiations and final legal texts of the Canada-Korea Free Trade Agreement, the Canada-European Union Comprehensive Economic and Trade Agreement, and the Trans-Pacific Partnership.

Government Engineering Aid to Railroads Before the Civil War

1951 ◽  
Vol 11 (3) ◽  
pp. 235-246 ◽  
Author(s):  
Forest G. Hill
Keyword(s):  
Civil War ◽  
Federal Government ◽  
Technical Assistance ◽  
Major Element ◽  
Early Growth ◽  
Engineering Science ◽  
Land Grants ◽  
Government Aid ◽  
History Of ◽  
Government Promotion

American historians have commonly given attention to the manner in which the Federal Government stimulated the early growth of railroads by the remission of tariff duties on railway iron and particularly by land grants after 1850. They have said little about government promotion of railroads before the Civil War through the provision of engineering services. But this engineering aid was a major element in the initial progress of railroading and is an important aspect of the history of government economic policy toward transportation and science. This government aid is here discussed in terms of (1) the technical assistance given to railroads directly by the Army engineers and (2) the indirect stimulus given to railroads by government promotion of engineering science.

AN ANALYSIS OF THE EU’S INVESTMENT POLICY AFTER CETA: EFFECTS ON THE BULGARIAN ECONOMY

2020 ◽  
Author(s):  
Nikolay Marin ◽  
◽  
Mariya Paskaleva ◽  
Keyword(s):  
Bilateral Trade ◽  
Positive Impact ◽  
Value Added ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Investment Policy ◽  
National Parliaments ◽  
Total Employment ◽  
Investment Protection ◽  
New Generation

In this paper we analyze the changes of the EU’s investment policy provoked by the mixed trade agreements. The EU’s investment policy has turned towards attaining bilateral trade agreements. One of these “new-generation” agreements is the Comprehensive Economic and Trade Agreement (CETA). It is in a process of being ratified by the national parliaments of the EU members. This study is focused on the general characteristics of CETA and the eventual problems posed by its regulatory and wide-ranging nature. We prove that the significance of this agreement pertains not only to the economic influence, that it will have on the European and Canadian economies, but CETA is also the first trade agreement to have been negotiated with a focus on investment protection and a change in the EU’s investment policy. The current study reveals the influence arising from the conclusion of CETA on the Bulgarian economy with an emphasis on electronic industry, machinery industry and manufacturing. We estimate both – the direct and indirect effects on Bulgaria’s exports, imports, value added and employment. In order to estimate the influence, we apply the multi-regional input-output model. It is proved that CETA will have a low but positive impact on the Bulgarian economy. After constructing different scenarios of development, we prove that the influence of CETA on the Bulgarian economy will amount to 0.010% GDP. The average total employment will be increased by more than 172 jobs in Bulgaria, which in turn, relative to the labor market, represents less than 0.01% of the total employment.

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