Path: utzoo!mnetor!tmsoft!ead
From: ead@tmsoft.uucp (Elizabeth Doucette)
Newsgroups: can.general
Subject: Re: What does it mean to be a Canadian?
Message-ID: <1989Aug7.192704.26849@tmsoft.uucp>
Date: 7 Aug 89 19:27:04 GMT
References: <615662921.9256@myrias.uucp> <568@UALTAVM.BITNET> <609@philmtl.philips.ca> <1458@apss.apss.ab.ca> <1989Jul27.235845.24886@tmsoft.uucp> <1034@jtsv16.UUCP> <6713@cognos.UUCP> <1042@jtsv16.UUCP> <6742@heraclitus.UUCP>
Reply-To: ead@tmsoft.UUCP (Elizabeth Doucette)
Followup-To: can.general
Distribution: can
Organization: EAD MoneyHealth Inc, Toronto, Canada
Lines: 57

In article <6742@heraclitus.UUCP> rayt@cognos.UUCP (R.) writes:
>In article <1042@jtsv16.UUCP> Brian A. Jarvis writes in response to my
>contention that advocating a laissez-faire market to decide the survival
>of national industries (Canadian versus American, in this case) is
>idealistic,
>
> [...]							R.
>-- 
>Ray Tigg                          |  Cognos Incorporated
>                                  |  P.O. Box 9707
>(613) 738-1338 x5013              |  3755 Riverside Dr.
>UUCP: rayt@cognos.uucp            |  Ottawa, Ontario CANADA K1G 3Z4

Before the last federal election free-trade was discussed a lot, as
everyone knows.  One of the agruements against, was that the U.S. has
plants (100% owned by U.S. companies) in northern Mexico, along the
U.S. border.  Products manufactured there and shipped into the U.S.,
are allowed to be labelled "made in U.S.A.", therefore, fall under the
free trade agreement.  The products are allowed to be labelled this
way because raw materials and components are imported into Mexico
duty-free.  Labour is so cheap, it might add only 15% to the value
of the product.  The result of this makes it very hard for Canadians
to compete.  Mexicans are paid U.S. $8.00 per day. 

Well, I was very much against this.  However, in Thursdays (July
31/89) Financial Post page 9, there is an article on this.  It
mentions that more and more U.S. AND Canadian companies are doing
this.  Everytime a company closes and moves to Mexico, jobs are lost
at home.  

Many of these companies are Fortune 500 companies (~57, including
Chrysler and General Motors).  The article mentions that electronic
parts are made for Polaroid cameras and Control Data computers.
"Every household in the U.S. and Canada owns products at least
partially made in Mexico, from consumer electronics and car parts to
vacuum cleaners and water heaters.  Artificial Christmas trees and
electric outboard trolling motors are manufactured here.  So is dental
floss for your dog and weed-eaters for your lawn."

In Canada, Bendix Safety Restraints Ltd. announced it was moving
production to Mexico putting 400 Canadians (Collingwood) out of work.
Last fall Fleck Manufacturing Co. put 238 members of the Canadian Auto
Workers union out of work, by moving to Mexico.  Dicon Systems Ltd. of
Toronto (makes smoke detectors), Custom Trim Ltd. of Waterloo (car
components) and Ideal Equipment Co. of Montreal (industrial packaging)
have also moved.

Another reason that companies are moving is that in Mexico they do not
have to adhere to strict environmental controls.  According to the
article, environmentalists say the companies can pollute at will.

Another point that is made is that "the Mexican government is not
reinvesting in the industry.  Therefore, foreign companies can't
attract workers to the region.  With jobs chasing workers, wages will
inevitably go up." 
 
I'm ambivalent about this situation.  Any comments?