Page 6 - SpectrumJuly2018_Neat

"The Tariff War Game …

A Publication of
US - 0, Canada - 0"

750 Hespeler Road
Cambridge, ON N3H 5L8 We all knew it might come to this, what by public opinion, it is a dictatorship that
Tel: 519-622-2221 Fax: 519-622-0177
www.cambridgechamber.com were we thinking, if not that? Donald makes its own decisions without public
Trump campaigned for a year and in ev- input, it just controls everything, and the
Executive Committee
eryone of his speeches he said NAFTA was President sees this as America’s card to
Nicole Pereira - Chair
Cambridge Centre Honda the worst trade agreement ever signed play for the win with NAFTA.
chair@cambridgechamber.com and if elected he would tear it up. While
Lorne Wallace - Incoming Chair
Lone Wolf Technologies there was always a question, and rightly Canada and Mexico are the pint size
Stephen Witteveen - Past Chair so, that his opinion changed with the partners in NAFTA, Mexico offers cheap
Pavey Law LLP
Terry Kratz - Treasurer weather, that opinion seemed to never labour costs, Canada offers quality of
Hemmerich, Flanagan, Kratz, McRae & Wilson LLP waver, he was building his support in the life, well educated workforce (the brains)
Muuray Smith - Executive
The Achievement Centre fly-over states, middle America or what and tends to be a better option for R&D
Darren Drouillard - Executive
Powerline Logistics Services Inc. they fondly refer to as the “Rust Belt”. and Technology growth, we have some
People who felt that trade left them job- key elements that make us the envy of
Directors less, transformation through the migra- some. Trade balances are important, but
Kristen Danson - MitoGraphics Inc tion of manufacturing out of the United it appears Mr. Trump is saying trade bal-
Mike Doersam - Vision Travel Solutions States where labour was cheaper, Mexico. ances are most important. If that is the
Rena Hawkins - H-4 Logistics Inc
Sarah Hughes - Energy+ Inc. These people felt it was trade policies case, why then is he going after Canada
Dr. John Tibbits - Conestoga College alone that drove work out of their lives. and Mexico like they are the ones caus-
Jason Warmington - Hallink RSB ing the biggest problem with the overall
While there are examples US trade deficit of 750 billion
of this very issue, not as dollars a year. The fact is,
much of it was to do with China is the largest contribu-
Staff Tariff barriers being low- tor to that, actually China is
Greg Durocher - President & CEO ered as it was about the responsible for half of the
president@cambridgechamber.com
cost of doing business vs United States entire trade
Scott Bridger - V.P. Membership Services and Engagement the consumers willing- deficit, over 350 billion from
Brandi Sinclair - Business Development Manager
Lisa Durocher - V.P. Marketing, Events and Member Enrichment ness to pay for the prod- one country alone. Canada
Melissa Davidson -Event Enrichment Manager uct. NAFTA, as we all know, and Mexico combined may
Hayley Davidson - Member Enrichment Advocate
Jeanette Mahoney - Visitor Services Supervisor doesn’t include China and on some years, contribute to
Donna Gravelle - Physician Recruitment India, where many manu- one tenth of their entire defi-
doctors4cambridge.com
factures fled when overhead became the cit but over the long term, Canada and
stumbling block to profitability. The Chi- the US are basically at even.
nese market was booming for years, a bil-
Spectrum is published four times per year by the Cambridge
Chamber of Commerce and distributed to all Chamber members. lion people, many more consumers in one President Trump announced Tariffs (du-
Opinions expressed in this publication are those of the authors and
do not necessarily reflect the policy of the Cambridge Chamber of country than all of North America, 35 mil- ties) of 25% on Steel and Aluminum
Commerce, Spectrum, its publishers or employees. The Chamber
cannot be held responsible for any errors or omissions that may lion Chinese a year, the entire population coming into the United States. He fails
occur in this publication. The sale of advertising space in Spectrum
does not constitute endorsement by the Chamber. Spectrum reserves of Canada, moving from the rural farming to understand that we have an agree-
the right to edit any material submitted.
life, to the urban manufacturing life style ment, signed, committed to governed
Find us on: and the Chinese Government opening its by the World Trade Organization, there
arms to North American companies to are rules in place to prevent one or the
Cambridge Chamber twitter.com/My_Chamber come, set up shop and supply not only other from arbitrarily imposing changes
of Commerce
China, but the world, with incentives that without proper negotiation. The problem
Design & Layout Printed by: were beyond fantastic. is, by the time the WTO rules on this, the
damage will be done and irreversible.
But because American does not have This move has a zero sum win for anyone,
a trade relationship with China, other in fact, not only will Americans and Ca-
www.cambridgechamber.com www.advanceprinting.ca
than idol threats, the imposition of Tar- nadians not win, they will lose, this move
iffs (duties), which of course the Chinese is probably the most irresponsible move
Printing of the Spectrum complies with:
Government will simply retaliate with its he could have made, but then, maybe we
own, there wasn’t much President Trump didn’t expect him to be responsible. This,
could do. You see, China is powerful, the not unlike most moves by most politi-
leadership is unwavering and not driven cians has nothing to do with making life
6 www.cambridgechamber.com
Summer 2018