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Protestors fight Prime Minister's push for freer trade

Jean Chretien feels that freer trade is

Source: The

Varsity (University of

Toronto)

By Richard

McKergow

necessary in this global world

TORONTO (CUP) - While Prime Minister Jean Chretien was busy singing the benefits of free trade

Taxation Continued from page 6

native” budget update.

According to Jim Stanford - an economist and chair with the Macro and Fiscal Policy Committee and author of the alternative budget update - over the next five years the federal surplus could accumulate to a whop- ping $117 billion.

This could occur in the absence of any tax changes or major new programs.

In Canada, the taxation system is intended to work on the principle of pro- gressive taxation - working to even out incomes over time by taxing high incomes at a relatively higher rate.

However, accord- ing to a report by the Manitoba branch of the CCPA, when all taxes are taken into account Canada has a nearly flat taxation system with everyone paying a similar percentage of their income in taxes.

“This unbal- anced system has made the rich richer and the poor poorer - and the gap keeps growing,” claims the report. —

The alternative budget update, pre- pared using an eco- nomic simulation model similar to the tederal governments, considers the various effects of economic growth, inflation and interest rates on components of the federal budget.

The CCPA’s © simulation confirms Ottawa should be able to announce and fund new investments in human services and public infrastruc- ture in its coming budget without significant tax in- creases.

It is expected Martin will try to implement both tax cuts and increase spending in his upcoming February budget.

with the Americas, demonstrators chanted outside in the cold.

Last week, the Toronto Convention Centre played host to the fifth Americas Business Forum.

The meeting provided discussion on the Free Trade Area of the Americas (FTAA), an agreement that would see free trade between Canada and 34

good neighbours.”

However, a small band of protestors outside the Convention Centre completely disagreed.

“Bullshit, get off it, the enemy is profit!” they chanted. ‘

“It’s an agreement not based in reality,” said Erin Hodge, a volunteer at the On- tario Public Interest

understand that access to the market must be backed up by regimes that are fair and trans- parent. That is why we joined NAFTA with our two other North American Amigos, the United States and Mexico.”

“That is why we hawe’a free trade agree- ment with Chile, and we invest such impor- tance in the launch of a

South American countries by the year

2005.

Both Marc Lalonde,

rights violations ...’

“there have been thousands of deaths

and insane human

b

new run of global nego-

tiations.”

Chretien says Free Trade is not an end in itself, but rather a

means toa

the Forum chairman and a former minister in the Trudeau government, and Federal Minister of Trade Pierre Pettigrew met with approximately 1,000 business delegates from across the Americas.

“Tt has been written that ‘good fences make good neighbours,” said Chretien. “[But] with the rise of a truly

global economy, and the

global village, it is clear that good bridges make

Research Group and organizer of the dem- onstration. “It’s funda- mentally undemocratic. It tries to transform all laws to the approval of supranational agree- ments.”

But Chretien’s hopes remain high for the FTAA.

“Canada is in NAFTA because 40 per cent of Gross Domestic Product depends on trade,” he said. “We

better economy for its participants.

“[We want to work towards] building a better quality of life

for our people,” he said.

“We are also working together to strengthen democratic institutions, and provide for the wellbeing of our fellow citizens, consolidating democracy, improving quality and availability of social services, protecting the environ- ment and ensuring

access to education.”

But much of what Chretien said came under fire from activists.

“In Columbia in the last decade, there have been thousands of deaths, and insane human rights viola- tions,” said Genny Santos, a volunteer for the University of Toronto OPIRG divi- sion.

Santos took aim at Chretien’s claim that Ottawa is only inter- ested in negotiating with peaceful regimes.

“In the results of NAFTA we can see increased sweatshop labour conditions, increased unemploy- ment, increased corpo- rate take-overs over indigenous lands and the only people that benefit from it are the elite,” said Santos.

Chretien, how- ever, would say that opinions like Santos’ are due to a lack of communication be- tween governments and activists.

“The government has to make sure that the benefits of freer trade are better com- municated to those who fear it,” he said.

END