Which do you love most, your party or your country? The Canadian Action Party is the only party that would immediately give the six months notice required to abrogate (cancel) both the FTA and NAFTA, as well as refuse to sign any more agreements like the FTAA if the "national treatment" clause was included.

October 4, 2000

FTA, NAFTA AND THE BIRTH OF THE 51st STATE

Canadians have been duped!

We were led to believe that the Canada-U.S. Free Trade Agreement (FTA) and the North American Free Trade Agreement (NAFTA) were "free trade" agreements. They were not! They were primarily investment agreements. The Americans wanted "free access" to our industries, and our resources including our oil and gas and, soon, our water.

Of course, the FTA reduced tariffs over a period of ten years but this was happening anyway under the General Agreement on Tariffs and Trade (GATT). In fact, we gave up more than we gained on tariff reductions. But that is nothing compared to what we lost on the investment front. The Americans wanted to buy us out for 68 cents on the dollar. And they are!!

The day the FTA was signed on October 3, 1987, U.S. trade representative Clayton Yeutter, let slip this observation. "We ve signed a stunning new trade pact with Canada. The Canadians don t understand what they ve signed. In twenty years, they will be sucked into the U.S. economy."1

Yeutter was telling the truth! But our political leaders have never told us the truth. They still pretend that the two fatal agreements are about trade. They still won't admit that the two agreements are licences to buy Canada lock, stock and barrel.

When Ronald Reagan signed the Free Trade Agreement, he accomplished what American generals and American armies were unable to do in 1776 and again in 1812-14 he conquered Canada. As of now we have about two years to take back control of our country or the occupation will become permanent and annexation will become inevitable. That is the reason the election is so important.

If either the Liberals or the Alliance form a majority, or stable minority, government, Canada is a dead duck. Both are committed to policies that constitute Canada's death warrant, i.e. an "open border and the substitution of corporate rule for democracy. These "values" are not Canadian values.

Both the Liberals and the Alliance are staunch defenders of the policies of Brian Mulroney, the American "mole" who sold us down the river. When the former prime minister told us at the time the FTA was signed that "Canada is open for business again," he should have been honest with us and said: "Canada is now up for sale to the highest bidder."

We are not anti-American we are pro-Canadian. We think it is best for Canada, the U.S. and the world if each country retains its identity and its sovereignty.

The "National Treatment" Clause

Most Canadians, probably 98 percent, have never heard of the "national treatment" clause which is the one that guarantees our demise as a nation state. When the FTA was signed, national treatment was a relatively new concept in international law that gave American investors equal rights in Canada as Canadian citizens.

We consider this to be morally wrong in principle. Ask yourself, "What is the advantage of citizenship if non-citizens have equal rights?" In the real world it gives foreign investors, mainly American, the unrestricted right to invest in Canada: (a) without conditions and, (b) without limits. We have lost the right to say that only foreign investment that is beneficial to Canada is welcome. And we have lost the right to say that they can't buy more than 50 percent of our forest industries or 80 percent of oil and gas reserves because the treaty says they can buy and own them all.

NAFTA Worse than the FTA

NAFTA is worse than the FTA because Chapter 11, the disputes settlement clause, allows U.S. and Mexican investors the right to sue us if any of our governments, federal, provincial or municipal, passes or amends a law that affects their profits or future profits.

When Canada passed a law banning the importation into Canada and distribution within Canada of the manganese-based gasoline additive, MMT, the Ethyl corporation sued us! After lawyers advised that we might lose the case, the government settled for C$20 million to cover legal costs. And worse, it agreed to repeal the law.

As if that's not bad enough, two cabinet ministers had to read statements to the effect that MMT isn't harmful to the health or the environment even though the latest scientific evidence suggests that MMT may indeed be harmful to health, especially of children.

What kind of a democracy do we have when a foreign corporation can tell the parliament of Canada what laws it can or cannot pass? This is little more than corporate blackmail.

There are other suits pending. Sun Belt Water Corporation of California is suing us for US$1.5 to $10.5 billion because we won't let it sell our water for export. United Parcel Service is suing for C$230 million claiming that Canada Post has an unfair advantage with its Purolater courier service. And we taxpayers will have to pay if they win! At this rate, Chapter 11 could cost us more than many social services.

It s Now or Never

Since the FTA was signed, about 13,000 Canadian companies have been sold to foreigners about 10,000 to Americans. These include the forest giant MacMillan Bloedel, Le Groupe Forex, Club Monaco, Tim Hortons, Laura Secord and the list goes on and on. Needless to say, when ownership leaves the country the best decision-making jobs leave with them a major contributor to the brain drain.

According to Crosbie & Co., a Toronto investment bank, foreign take-overs of Canadian companies reached a record in 1999, more than doubling the previous record set in 1998. "You've got to be concerned that you're losing control of your own destiny," said Ian Macdonell, a partner in the company.

The pace of the sell-out is definitely quickening. Liberal Industry Minister John Manley told the Financial Post in March, 1999, that foreign ownership restrictions will come off transportation, telecommunications, "and even the banks."

You don't need to be a rocket scientist to know that it's only a matter of time until Air Canada will be bought by an American airline; Shaw and Rogers cable companies will go to U.S. interests; Bell Canada, with both CTV and the Globe and Mail in tow, will be bought by AT&T; and all of the Canadian banks, whether merged or not, will be controlled by international banks such as Citibank and Chase Manhattan.

Indeed, news reports indicate that Citibank has already bought almost 10 percent of Royal Bank's shares and is just waiting for Finance Minister Paul Martin's new legislation to be passed which will increase the ownership limit to 20 percent. The government must be defeated before parliament approves or the loss of control of the banks will come sooner rather than later.

CAP Coalition to the Rescue

The Canadian Action Party coalition of concerned Canadians is the only hope to save Canada. People from all political parties must get together under one political umbrella to reverse the course of history.

We are unlikely to get another chance! Long before the 2004 election is held so many Canadian corporations will have been taken over that there will be nothing left to save. Canada will be little more than an empty shell.

Worse, the Liberals, egged on by Reform (Alliance), have been trying to entrench the "national treatment" clause so that not even Houdini could escape. They tried to entrench it in the Multilateral Agreement on Investment (MAI) for 5 years plus 15 years grandfather rights for a total of 20 years. Had they succeeded, our fate would have been sealed. Now they are trying to do the same thing through the Free Trade Area of the Americas (FTAA), which both parties are vigorously promoting. Should they succeed, which they will if either party should win the election, it will be "game over" for Canada.

Which do you love most, your party or your country? The Canadian Action Party is the only party that would immediately give the six months notice required to abrogate (cancel) both the FTA and NAFTA, as well as refuse to sign any more agreements like the FTAA if the "national treatment" clause was included.

We would then negotiate genuine "fair trade" agreements because Canada can compete in trade. We have proven that. But we cannot compete in investment. We are just too small compared to the elephant.

The Critical Choice

This election is unquestionably the most important since confederation in 1867 because it is the one that will end, or restore, all that we have achieved. If you care about your country and want to see it regain its sovereignty, you only have one choice CAP.

"Candidates are needed immediately. Cutoff date for applications is about two or three days after the election is called." Fax your resume and reference to: (416) 535-6325

Or contact: The Canadian Action Party "Canadian Action Party"