THE CADRE‘.‘ Nov.~ -5'.‘«:..»'.page B n 
     
    
   
   
    
     # @flmma - Elms 
     
    
   
   
    
     Americian President Richard 
     
     Nixon,it seems,does not like the 
     
     winds of economic nationalism 
     
     currently circulating in this 
     
     country.and would like to be ' 
     
     guaranteed a greater Canadian 
     
     financial dependency on the U.S. 
     
    

    
     When Nixon introduced his 
     
     10% import surcharge as phase one 
     
     of his new economic policies 
     
     last month,many observors fore- 
     
     cast a trade war between the U.S. 
     
     and Canada,each of whom is the 
     
    

    
     other's largest international 
     
     trading partner. 
     
    

    
     ‘ The end result of this may 
     
    

    
     be that the new-international 
     
     trade policies will lessen our' 
     
     financial dependance on the U.S. 
     
     Most nations that have struggled 
     
     for their financial independence 
     
     from the U.S.in recent history 
     
     (Japan.Mexico,Chile,ect.)have 
     
     used domestic policies to 
     
     achieve their goals (i.e.-nation- 
     
     alization of banks,industry.)but 
     
     Canada has reached into the realm 
     
     of international economics to 
     
     .strengthen her world position 
     
     as producer and exporter. 
     
    

    
     In his courtships of the 
     
     Soviet Union,China,and the Europe 
     
     ean Common Market.Trudeau is 
     
     finding ready markets for Can- 
     
     adian produce. And using the new 
     
     Americian economic policies as a 
     
     timely politicial lever,he is 
     
     gradually intensifying the dip— 
     
     lomatic flirtations. ‘ 
     
    

    
     New markets and new trade 
     
     agreements will not make Canada 
     
     economically independent. But 
     
     they will set up a more reason- 
     
    

    
     able and less restricted supply 
     
     and demand framework in which 
     
     Canada can manoueverrmore freely 
     
     on the international economic 
     
     front. 
     
    
   
   
    
     If these new trade partner- 
     
     ships work out,it will probably 
     
     -mean an independent capitalist 
     
     society for Canada,given time, 
     
     rather than the all-encompassing 
     
     North Americian market that econ» 
     
     omists talk about today. 
     
    

    
     While international markets 
     
     may change,the domestic system of 
     
     production shows no sign of doing 
     
     likewise. After all.it is native 
     
     rCanadian capitalists that the 
     
     government‘s new policy is 
     
     designed to help,and it is. 
     
     because of the hardships they are 
     
     now facinggthat it is seeking new 
     
     market places. ' 
     
    

    
     What steps has Canada taken? 
     
     Consider these examples: 
     
    

    
     *China is Providing Canada 
     
     with an advance list of its im- 
     
     port requirements for 1972. This 
     
     list will arrive in Ottawa in 
     
     December,and will include for the 
     
     first time a-request for manufac- 
     
     tured goods. 
     
    

    
     This year exports to China 
     
     could reach 200 million dollars, 
     
     a 40% increase over 1970, with 
     
     Canadian textile goods supple- 
     
     menting the massive wheat trade. 
     
     And,since China will not impert 
     
     Americian manufactured goods, 
     
     this trend toward industrial 
     
     trade will be a shot in the arm 
     
     to Canadian-owned business. 
     
    
   
   
    
       
     
    
   
   
    
       
     
    
   
   
    
       
     
    
   
   
    
       
     
    
   
   
    
       
     
    
   
   
    
       
     
    
   
   
    
     UU 
     
    
   
   
    
       
     
    
   
   
    
     Um LJ z'mmmgzg 5% 
     
    
   
   
    
     *There is a growing aware- 
     
     ness of Canada's economic posit- 
     
     ion (and vulnerability) among 
     
     officials in the European Econ- ‘ 
     
    

    
     omic Community (EEC). In the 
     
     past Canada has been considered 
     
     part of the North Americian 
     
     market accessible through the 
     
     U.S.,but the recent Americian 
     
     surcharge has shown quite clear- 
     
     ly the differences between 
     
     Canadian and Americian markets. 
     
    

    
     The president of the EEC, 
     
     Mario Malfatti, visited Trudeau 
     
     and senior cabinet officials 
     
     recently to discuss methods of 
     
     protesting the Nixon measures. 
     
     At this meeting (ignored by the 
     
     daily press) the possibility of a 
     
     non-preferential economic agree— 
     
     ment was considered. 
     
    

    
     The EEC has only two similar 
     
     trade agreements at presentaone 
     
     with Yugoslavia, the other with 
     
     Argentina. 
     
    

    
     The Kosygin visit to Canada 
     
     was also well-timed within the 
     
     economic crisis. Kosygin said 
     
     publicly that Soviet-Canadian 
     
     trade will increase and prosper 
     
     and indirectlyvattacked U.S. 
     
     economic policies,whtle Trudeau 
     
     forsees a new relationship with 
     
     the U.S.S.R.”as friendly as 
     
     Canada has traditionly had with 
     
     the U.S? 
     
    

    
     _ The Soviets are interested 
     
     in exchanges of technological 
     
     information and in sharply 
     
     increasing trade in textiles and 
     
     machinery.Canada now exports 
     
    

    
     about $120 million of 
     
     goods a year to the Soviet Union, 
     
     again mostly wheat, while im- 
     
     porting(1n{1970)only $8 million. 
     
    

    
     So, through international 
     
     trade and foreign relations pol- 
     
     icies, Canada is burying the 
     
     hatchet that Louis St. Laurent 
     
     and John Diefenbaker wielded 
     
     figa%nst the Communist bloc back 
     
    
   
   
    
     n he cold war da 
     
     1950.8. YS of the 
     
    
   
   
    
     There is no doubt that the 
     
     biggest winner is going to be 
     
    
   
   
    
     -intustry.But for a change, it's 
     
    
   
   
    
     going to be Canadian industry 
     
    

    
     and not Americian controlled 
     
     industry that is going to benefit 
     
     by the addition of_more foreign 
     
     markets. 
     
    

    
     The U.S.,long Canada's major 
     
     trading partner,is going to lose. 
     
     And it will lose,ironically, 
     
     because of its own recent econ- 
     
     omic policies which started the 
     
     international trade snowball. 
     
    

    
     excerpts from 
     
     Ian Wiseman.