NAFTA and CAFTA
Trade Balances and Jobs: Canada, the US and China
Americans and Canadians uniting to address the challenge of Chinese competetion
Authors:
E. Weir,
Publisher:
Canadian Centre for Policy Alternatives, 2007
This note examines the effect of trade balances on North American jobs. It argues that the conventional wisdom that Canada’s trade surplus with the US has transferred jobs from Americans to Canadians is misleading, since the majority of the surplus consists of natural resources that the US cannot produce enough of to meet its needs. However, the author argues that China’s trade surplus is based on low-cost manufacturing that undermines North American employment. It therefore suggests that rather than viewing Canada as part of the problem, Americans should work with Canadians to address the challenge of Chinese competition
