WEBVTT

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[sil.]

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[music]

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[music]

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That’s our home that’s where we’ve lived

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our life time, it’s a cold
and difficult country

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in many ways, but it’s beautiful. I… I
think we have a marvelous country here.

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When I get away from Canada any distance

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and I look at what we’ve done up here in
this pretty cold at times fairly forbidding

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very challenging country
okay, but it’s remarkable

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we’ve built remarkable civilization here and
don’t give ourselves enough credit for that.

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I think all Canadians

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are very proud and very aware
of the physical country,

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the look of the country that we live and the beauty of our
country. I think all Canadians take great pride in our…

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the natural resources of our country.

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We’ve always learned that the
greatness of Canada lies

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in the prairie, the tall trees, the water, the
oceans, that’s what we believe in this country

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and of course it is always served us
very well, our resources are plentiful

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they have kept us very wealthy.

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Our home is the second
largest landmass on Earth,

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with our lavish resources we have created

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one of the most affluent societies
in the world, but our grand success

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is facing stubborn obstacles.

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We all want the good life for ourselves and
for our families, but an increasing number

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of us are worried about we’re going to
attain it. Since the beginning of the 1970s,

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people have been concerned about the direction of the Canadian
economy, we’re worried about where the global economy

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is going and whether it’s
transformation is going to hurt us.

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The brutal consequences of the
recession of 1981 and ‘82

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magnified our concerns.
There seems to be a trend

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where people are getting poorer and

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it seems to me that the richer people are getting
richer and the poorer are getting poorer

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and it’s really affecting the children that
I work with. I remember seeing it for years

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and it doesn’t matter how much government mismanagement we have, it
doesn’t matter we have Eleven governments trying to run this country

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into the ground, they can’t run it into the ground.
I was wrong, they did. It’s getting worse.

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I mean it’s not going through that awful
depression we went through before,

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but it… it seems as though we… we
all have this hopeless feeling.

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I have a couple of brothers that
are without work right now.

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You know, everybody in the country pretty well has someone in the
family or know somebody that’s unemployed and so on and it’s…

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it’s nothing seems to be changing.

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We’re at a crossroads an economic reckoning

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and an underlying essential question that is
emerged is how can we become more competitive

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in this fast changing world.
Let’s take stock.

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You know most of us in Canada work in
what is called the service sector,

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we work in big office buildings like
those ones. We push paper around desks,

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we work in education, we work in banking,
we work in finance, we work in government.

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But what we need to remember
is it’s the other 30%

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of our labor force, our resource
industries and manufacturing

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that keep the rest of us in business.

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[music]

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We often forget about this stuff

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because it’s the basis
of the Canadian economy.

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Our wood, our minerals, our agriculture, our fishery,
without them the Canadian economy doesn’t work.

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We wouldn’t have much to sell to other people around
the world that’s what allows us to buy the things

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that we import from abroad and the
difficulty in the late 20th century is,

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that the things that we’re exporting are
getting harder to sell on the world market.

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New technologies and
plastics to fiber optics

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are reducing the demand
for our resources as well

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it turns out that a lot of other countries
around the world have resources too

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and they’re exploiting them
with much lower labor costs.

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As technology has moved across
the globe, first to Japan

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and now to low wage countries
like Taiwan, Malaysia and Brazil

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we have to accept some painful truth.
Canada really faces this…

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a serious competitive
challenge in the 1980s,

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because there are producers in the… in the
developing countries now who can produce resources

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which are used to be the engine of
growth for our country. They can produce

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relatively simple manufactured goods
like textiles and so on at very low cost

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and also they’re getting into
what we call high tech goods

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and they can… they can actually do very sophisticated
products now sometimes with better quality

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technology than we have. Japan
and the developing nations

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aren’t the only countries on the landscape.

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The employees in this Swedish company are learning
how to use the robots their own company has made.

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Sweden is just

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one of a number of European countries that are boldly
tackling many of the same problems we’re struggling with

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and with remarkable results.

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Often they’re outperforming
Canada as well as the US.

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[sil.]

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Too many Canadian factories look like
this, using old tech production methods.

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They’re suffering dwindling profits,
lower levels of investments.

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And while high tech winners

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of open plans, they are often foreign
owned, no other industrialized country

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is so controlled by foreign capital
and multinational corporations.

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One percent of Japan is foreign owned, two
percent of the United States is foreign owned,

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two percent of France is foreign
owned, three percent of Great Britain

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is foreign owned and we Canadians have already
got 30% of our country foreign owned.

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Foreign investment has helped

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to open up this vast country, but branch plans
maximize profits in their home countries

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not in ours, and it has limited
our capacity to solve our

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own economic problems.

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The results of all this, are
dependent, semi industrialized,

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resourced based economy just isn’t
working as well as it should be.

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Too many people are unemployed, poverty
is increasing, the deficit is too high,

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our productivity growth is down,

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our options we can try to somehow muddle
through or we can make some hard choices.

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If we try to stay with a status quo, present economic
policies it’s an extremely dangerous of course for Canada

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or bit like Alice through the Looking Glass. We’re in a country
where if we try to stand still, we’re going to go backwards.

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So the present status quo seems
to me to be really risky.

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And secondly if we come to that conclusion which a lot
of people have, then you say where do we go from here

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and by a process of elimination you get to
the point, that almost the only game in town

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that has a chance of breaking out of the status
quo is a free trade area with United States.

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A lot of people think it make sense

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to come to this place to deal with the problems
of the Canadian economy the Canada-US border,

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this means significant
economic recovery in Canada

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since the severe recession of the early 1980s. But let’s
face it, this country still has serious economic problems

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and what a lot of people are now
saying is that to solve them

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we need a free trade agreement with the United States,
but that’s the course of action that Canadians

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have resisted since confederation.

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We’ve always been debating
free trade in this country.

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Throughout the years it’s
worn a number of labels,

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fair trade, reciprocity, enhance trade,
bilateral trade, continentalism.

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But it’s always been about establishing
freer trader with the United States.

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McDonald,

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Laurier, Borden, Mackenzie King,

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for all their governments free
trade was a central issue.

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Now it’s back on top of the agenda.
People like me spend their careers

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thinking about Canadian economic policy, but
the free trade debate of the 1980s is not like

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that it’s not a debate for the professionals,
it’s an intensely emotional debate

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and it involves the whole country. We thought about
free trade for a very long time as Canadians

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and we’re now reconsidering the issue. We’re reconsidering
because of protectionism in the United States

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which may cut us off from that very
important market we have to reconsider.

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Today, our future trading relationship

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with the United States is at the center of
the debate on how we can best revitalize

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the Canadian economy. Is
free trade the solution?

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Once again, the great
Canadian debate is on.

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I am basically in favor of free trade
because we don’t have any choice.

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It looks like a window of opportunity
that we can pass through to get under

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some of this US protectionism where after
all 70% to 80% of our trade is directed,

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our markets are simply closing down.

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That Atlantic fishery has already
been hit by American protectionism.

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Sharon and Gust (inaudible) and their four
children live in Cape George, Nova Scotia.

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For 200 years the fishery has provided
the economic backbone of this region.

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Now Sharon and Gust see their future being
threatened by American imposed duties

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on their fish. Understandably,

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they’re ardent free traders. you are talking
about a way of life and a livelihood

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and your whole way of supporting a family.

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You start putting a duty on the
fish going into the States

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then our fishermen would have to take a lower price
for the fish and they can’t afford to do that.

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[music]

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Essentially, the US market is shutting
down more and more every weak.

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People who worry about what will
happen with free trade seem to ignore

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the things that are happening without it.
We are under tremendous pressure

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and we have to try to defend ourselves
from some of that pressure.

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What about (inaudible)

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rain farmers in Bagotville, Alberta. They see
free trade as a threat to their livelihood.

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With free trade, the market place
sometimes called the level playing field

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meaning a fair and equal
chance for all competitors

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would determine our economies winners and losers,
but many sectors of the Canadian economy

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just couldn’t survive without
some form of protection.

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As a farmer, free trade is not
going to do me a whole lot of good

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because like grain production we produce one crop
a year, some parts of the world produce two.

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We maybe can’t compete against Australia
for instance in wheat production,

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maybe we can’t compete against the United States and
some of the warmer climates in livestock production,

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but we also have to recognize that if we aren’t producing
that food we are going to be at the mercy of these countries.

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And if that’s the decision of
our people in this country

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that they don’t want to produce
food then let’s go for free trade.

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Drummondville, Quebec, since
1918, this town has flourished

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because of it’s textile mills. Textiles
and clothing are amongst Canada’s

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largest manufacturing sector employers,
but it’s becoming increasing difficult

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to compete with low wage
producers like Korea

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for the southern United States.

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Phillip Longshed has worked in the
same textile mill for over 30 years.

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He is worried about the future competitiveness
of the textile industry in Canada,

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but he doesn’t think the sinkers
swim approach of the market place

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is a solution. Free trade,
well, it’s scary right now

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we don’t know what the outcome
would be and to a lot of people

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it is disquieting and it is to me,
because textile has always been my life.

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I don’t know the real… the exact figures, but
I’ve been told it’s over 400,000 jobs that are

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involved in this textile industry or
whatever it’s direct or indirectly,

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and I don’t think any government right now

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has anyway of replacing
that amount of jobs.

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The problem with free trade of the United States
today I think you can list the problems out.

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I like somebody list me
the advantages of it.

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People making the argument in favor of free trade say jobs and
nobody yet has told us where the jobs are going to come from.

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But certainly people are saying on the other side of the
question of lots of jobs they can point to the textile industry,

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they can point probably the auto industry. They can point
the service industry, they can point the wine industry,

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they can point the food industry, food processing industry
and say there is going to be a lots of jobs in those.

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So, nobody has told us and the question of jobs
where they’re going to come from. Everybody can see

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where we’re going to have some problems. We’re
going to have problems in fact across the board

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in matured manufacturing in particular.
And a lot of that mature manufacturing

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is foreign owned and controlled. So
a lot of it will have an incentive

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to shrink even further in the Canadian
market than it would otherwise have had,

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but nobody can tell the future, nobody can say
that there is this little company in Scarborough

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that’s going to be 500 employees in
10 years time because of free trade.

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Nobody can… can describe the opportunities
that exist because it’s in the future,

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it’s in seeds all over
the Canadian economy.

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There are no guarantees where jobs
would be located under free trade.

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But small businesses all across the country like
this children software producer in Montreal

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or this high tech Hacketts
Cove, Nova Scotia

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are creating more new jobs than any
other sector of the Canadian economy.

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Two-thirds of all small
businesses back free trade,

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and often not because they
would directly benefit.

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After all 80% of our exports to the
United States now enter duty free.

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Companies like these graphic arts

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firm in Toronto export work to the
US and paying no tariffs at all.

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Free trade wouldn’t give them any wider access
to the US because it’s already wide open.

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[sil.]

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Barbara (inaudible) wouldn’t directly benefit from
free trade either, she sells her disposable clothing

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only to a very specific market in Canada.

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But there is much more at stake in the free trade
debate than increased access to US markets.

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It will encourage Canadian companies

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to be more productive to find better ways of
doing things. It gives us a tremendous window

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on the world and I think the
feeling is among people

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who my lesson to on the subject that, if
we can compete with the United States

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we really can’t compete globally at
all, so it maybe a necessary evil.

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It would seem that much of business

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is convinced that the American market system
is the highest expression of what is possible

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in an economy, but Canadian
banks as well as big business

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have never operated entirely by
the rules of the market place.

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They’ve always worked along side the public or government
sector. Sometimes through public sector investment

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and privately owned operations, sometimes
through the creation of crown corporations.

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That is how we have built the country.
Now business is saying

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get government out, open up the
flood gates of competition.

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They want to operate in an
unfettered free market,

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and they think a trade deal with the United States will
give them the chance to compete on that broader world stage

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to give the Canadian economy the
vibrancy that it now lacks.

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[music]

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No one would disagree that our country’s
economy needs a boost of something,

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but is an unfettered market
place the boost it needs.

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Not much being sold in this
shopping mall was made in Canada.

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We export our raw resources and then buy back
the finished goods. We are exporting jobs.

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We must diversify our economy.
Simply tuning

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into the radar of the market
place may not be an answer.

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The only thing that the free traders like, they
like the idea of free trade because it’s so simple.

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In fact I think it’s absolutely simple minded idea.
I mean the only thing that it really means is that

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we just leave everything to chance, we leave everything to market
forces and just hope that those big multinational corporations

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are going to do all right by us. Now
I think we can’t leave it to that.

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I mean it’s… it’s much too serious a
problem, we just have to be careful that

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our people are employed and then our resources are used
responsibly in a use in a way that is useful to people.

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I think as an engine for growth, free
trade is a particularly weak point.

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[music]

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When people think about trade,

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they think about tariffs. When
they think about free trade,

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they think about taking down tariffs, but actually the center of the
trade debate between Canada and the United States is what are called

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non-tariff barriers. Non-tariff barriers

00:20:45.000 --> 00:20:49.999
are programs that the government puts
into place to help domestic industry.

00:20:50.000 --> 00:20:54.999
They affect all our lives. The Autopact

00:20:55.000 --> 00:20:59.999
with its safeguards for Canadian production,
Buy Canadian Programs for Canadian producers,

00:21:00.000 --> 00:21:04.999
Marketing Boards for farmers. The
Canadianization of certain industries,

00:21:05.000 --> 00:21:09.999
support for our cultural industries,

00:21:10.000 --> 00:21:14.999
regional and center programs to
encourage the development of industries

00:21:15.000 --> 00:21:19.999
in economically disadvantaged areas.
All these programs

00:21:20.000 --> 00:21:24.999
give preferred treatment to Canadian
production, and when they do that

00:21:25.000 --> 00:21:29.999
they make it harder for the US
to export products to Canada.

00:21:30.000 --> 00:21:34.999
The United States is understandably
concerned about this whole range of issues

00:21:35.000 --> 00:21:39.999
which are at the heart of the talks
between Canada and the United States.

00:21:40.000 --> 00:21:44.999
The Americans want to remove
a lot of these programs

00:21:45.000 --> 00:21:49.999
before they sign a free
trade deal with Canada.

00:21:50.000 --> 00:21:54.999
The trouble is, we have always used
these programs or non-tariff barriers

00:21:55.000 --> 00:21:59.999
to shape the economic
performance of our country.

00:22:00.000 --> 00:22:04.999
We haven’t always been successful.
But our goal has been to guarantee

00:22:05.000 --> 00:22:09.999
a certain quality of
life for all Canadians.

00:22:10.000 --> 00:22:14.999
Yeah, (inaudible) reducing tariffs, but when you start getting into
the world of non-tariff barriers and say that you want to eliminate

00:22:15.000 --> 00:22:19.999
all of these things, well a non-tariff
barrier is not an economic barrier,

00:22:20.000 --> 00:22:24.999
and a non tariff barrier is a
political barrier. It is something

00:22:25.000 --> 00:22:29.999
that a province or a nation has decided, you know, that
it wants to do in order a project a certain segment

00:22:30.000 --> 00:22:34.999
of the economy that it considers vital.

00:22:35.000 --> 00:22:39.999
It’s not that the United States doesn’t use non
tariff barriers to protect it’s own industries,

00:22:40.000 --> 00:22:44.999
of course it does, and lots of them.
But Americans have always relied

00:22:45.000 --> 00:22:49.999
less in the public sector and more on
the market place for job creation.

00:22:50.000 --> 00:22:54.999
Everything wouldn’t go in a free trade deal,
but if same marketing boards were retained

00:22:55.000 --> 00:22:59.999
we would probably lose something else.
The thing that

00:23:00.000 --> 00:23:04.999
would bother me in a free trade
sandbox, you know, we have to operate

00:23:05.000 --> 00:23:09.999
by what are the rules of the game, the pattern of the playing
field in that sort of thing. They have a difficult time coming

00:23:10.000 --> 00:23:14.999
to grip with the fact that we spend so much money and then
indeed use crown corporation for transportation systems,

00:23:15.000 --> 00:23:19.999
for communication systems like the
CBC, for all of these things.

00:23:20.000 --> 00:23:24.999
Well these are the… this is the nature of
the country, 4000 miles long and wide and…

00:23:25.000 --> 00:23:29.999
and with 25 million people.
This is the nature.

00:23:30.000 --> 00:23:34.999
[sil.]

00:23:35.000 --> 00:23:39.999
I think we have to protect

00:23:40.000 --> 00:23:44.999
our own production to a certain extent
because we need our production here.

00:23:45.000 --> 00:23:49.999
And it’s the farms and the factories working in
this country that are going to keep people at work.

00:23:50.000 --> 00:23:54.999
For instance, we raise a calf and there are many
people that want that calf to go to the United States

00:23:55.000 --> 00:23:59.999
to be fattened. Well whose grain is used, who
feeds the calf and then we buy the beef back

00:24:00.000 --> 00:24:04.999
from the United States and it’s happening everyday
and that’s what free trade is going to be all about

00:24:05.000 --> 00:24:09.999
that’s what will happen, the products will move
the labor will move, and it just won’t work.

00:24:10.000 --> 00:24:14.999
You know, when I was a kid

00:24:15.000 --> 00:24:19.999
I would love to play this game right
here at the international border.

00:24:20.000 --> 00:24:24.999
Now I am in Canada, now I
am in the United States,

00:24:25.000 --> 00:24:29.999
and now I am standing in both countries. And that little
game tells us something about Canada and the United States,

00:24:30.000 --> 00:24:34.999
because the border between the two countries for
most of the distance is just an imaginary line

00:24:35.000 --> 00:24:39.999
on a map. We’ve already seen that there
are serious commercial issues at stake

00:24:40.000 --> 00:24:44.999
in a free trade agreement, but is there more. Would
there be an impact on the Canadian way of life,

00:24:45.000 --> 00:24:49.999
do we have a different way of life over here in Canada than a
way of life in the United States, and with that be at stake

00:24:50.000 --> 00:24:58.000
in a free trade agreement. Well, I remember that
Robert Borden the former Canadian prime minister

00:25:00.000 --> 00:25:04.999
back in 1911 said, that
it wasn’t a discussion

00:25:05.000 --> 00:25:09.999
in terms of free trade about markets alone.

00:25:10.000 --> 00:25:14.999
He said the very destiny of
our country is at stake.

00:25:15.000 --> 00:25:19.999
All right, and thus today that’s even more
so the case, I think if we go this route

00:25:20.000 --> 00:25:24.999
it will be going a route that we
have resisted for a 118 years

00:25:25.000 --> 00:25:29.999
and we resisted it for many good reasons.

00:25:30.000 --> 00:25:34.999
Despite our similarities, Canada and the
United States have evolved very differently.

00:25:35.000 --> 00:25:39.999
United States constitution is based on a
revolution, Canadian constitution is based

00:25:40.000 --> 00:25:44.999
on a will of reconciliation.
The great revolutionary ideals

00:25:45.000 --> 00:25:49.999
of the 18th century are at the heart
of the American constitution,

00:25:50.000 --> 00:25:58.000
for Canada it’s order,
community, and good government.

00:26:00.000 --> 00:26:04.999
The difference is when you see
Canada and you hear Canada,

00:26:05.000 --> 00:26:09.999
then you know it’s not a country like the
United States. Are we about to lose it?

00:26:10.000 --> 00:26:14.999
Now one of the things thinks I am very scared of
is that this treaty will be negotiated by people

00:26:15.000 --> 00:26:19.999
on the top, not by the Canadian people and the
Canadian people should be very much informed

00:26:20.000 --> 00:26:24.999
if they are not. And if we lose our Canadian
identity because we were not vigilant enough

00:26:25.000 --> 00:26:29.999
to know what the wording of the
treaty then what will happen.

00:26:30.000 --> 00:26:34.999
[music]

00:26:35.000 --> 00:26:39.999
[sil.]

00:26:40.000 --> 00:26:44.999
You guys try to collect that, okay? Yeah, I’m
okay. We are about to start (inaudible).

00:26:45.000 --> 00:26:49.999
I am proud to be a Canadian

00:26:50.000 --> 00:26:54.999
and there are certain things that I am really proud of
and that is the way we as a people look after our own.

00:26:55.000 --> 00:26:59.999
If I happen to have a bad year and…

00:27:00.000 --> 00:27:04.999
and remember my family gets ill I would hate
to think that I would have to go through what

00:27:05.000 --> 00:27:09.999
some friends of mine I know in the US go through
with private insurance and all this that

00:27:10.000 --> 00:27:14.999
they can’t afford to be sick.

00:27:15.000 --> 00:27:19.999
Is it possible, that if
we go for free trade

00:27:20.000 --> 00:27:24.999
the quality of our social programs such
as Medicare could be eroded. After all,

00:27:25.000 --> 00:27:29.999
Unemployment Insurance benefits for East Coast
fishermen have already been challenged.

00:27:30.000 --> 00:27:34.999
It seems to me that every single social program we
have is in jeopardy with… with regard to free trade.

00:27:35.000 --> 00:27:39.999
We can say, \"Oh this is a scare tactic,\" as some
people who are in favor to free trade would say.

00:27:40.000 --> 00:27:44.999
But we can’t know that once
we have a wedge in the door,

00:27:45.000 --> 00:27:49.999
once that they have established that something isn’t unfair trade… a trade
practice, we can’t be sure that this isn’t a wedge that won’t go further

00:27:50.000 --> 00:27:54.999
and further into all of our social policies. If it
works with unemployment insurance, the principle

00:27:55.000 --> 00:27:59.999
is there and it will work with everything
else and can’t work with everything else.

00:28:00.000 --> 00:28:04.999
The scare talk, if we do this we can’t
have our own social security system,

00:28:05.000 --> 00:28:09.999
I think it’s a bunch of a (inaudible). If we want to
have a Medicare system a universal Medicare system

00:28:10.000 --> 00:28:14.999
I wouldn’t negotiate that I don’t think the Americans
will ask us to negotiate it. I think the Americans maybe

00:28:15.000 --> 00:28:19.999
at some point looking with some envy
on our… our Social Security System.

00:28:20.000 --> 00:28:24.999
Because their private way of handling that particular business is costing them
more per capita than our public system is, but I wouldn’t I wouldn’t negotiate

00:28:25.000 --> 00:28:29.999
those sort of things and I don’t think they will they will be negotiable.
I think we’re more likely to lose our Social Security system

00:28:30.000 --> 00:28:34.999
without free trade with the United States because
our economic well being is going to suffer

00:28:35.000 --> 00:28:39.999
and we won’t be able to
afford these systems.

00:28:40.000 --> 00:28:44.999
I feel very proud most of the time

00:28:45.000 --> 00:28:49.999
of the work that’s being done in this
country in the arts and communications.

00:28:50.000 --> 00:28:54.999
I think, you know, because
I am surrounded by

00:28:55.000 --> 00:28:59.999
evidence of talent and
energy and future potential

00:29:00.000 --> 00:29:04.999
in… in Canada, I am prepared to live my life
here, do my work here, have my ideas here,

00:29:05.000 --> 00:29:09.999
invest in this country in my way.

00:29:10.000 --> 00:29:14.999
I think what’s happening now in the Canadian culture
industries is something that’s quite good and quite positive.

00:29:15.000 --> 00:29:19.999
I think we’re getting confident about telling
our own stories the way we want to tell them

00:29:20.000 --> 00:29:24.999
and the reason we’ve been able to do
that is that we’ve had some protection.

00:29:25.000 --> 00:29:29.999
This is seen by the American culture
industries as an unfair subsidy system.

00:29:30.000 --> 00:29:34.999
A whole range of cultural policies

00:29:35.000 --> 00:29:39.999
that protect everything from the music recording, film and
television industries to magazine and book publishing

00:29:40.000 --> 00:29:44.999
are seen by the US as non-tariff barriers.

00:29:45.000 --> 00:29:49.999
No one is going to intentionally
bargain away our Canadian identity,

00:29:50.000 --> 00:29:54.999
but what happens, it’s the cultural
industries that have helped to create

00:29:55.000 --> 00:29:59.999
our identity are tampered with. The idea, the
trading a little bit more with United States

00:30:00.000 --> 00:30:04.999
or reading one more American magazine or watching
one more TV set would destroy our culture,

00:30:05.000 --> 00:30:09.999
is just to sell Canadian
uniqueness down the drain.

00:30:10.000 --> 00:30:14.999
It isn’t like that, it’s deeper, it’ll stand up
to whether we do a little bit more trade or not.

00:30:15.000 --> 00:30:19.999
So I don’t see that we’re going
to lose politically or culturally

00:30:20.000 --> 00:30:24.999
by just doing a little more trade. If I
think of something like Time magazine

00:30:25.000 --> 00:30:29.999
or Newsweek or People magazine,
where is Canada in those magazines

00:30:30.000 --> 00:30:34.999
where is a Canadian point
of view a Canadian idea

00:30:35.000 --> 00:30:39.999
about the world in American television
on American news for example.

00:30:40.000 --> 00:30:44.999
I… I just don’t see that
that our point of view

00:30:45.000 --> 00:30:50.000
is going to survive if we just become
part of a huge trading partnership.

00:30:55.000 --> 00:30:59.999
Films like My American Cousin for example, would
never get made without government support.

00:31:00.000 --> 00:31:04.999
Sandy, aren’t you going to introduce us?

00:31:05.000 --> 00:31:09.999
Sandy?

00:31:10.000 --> 00:31:14.999
Shirley, this is my American cousin Butch

00:31:15.000 --> 00:31:19.999
and that’s Rosie Hardman, I am going to go jump in the
river. Good idea. We want to tell our own stories

00:31:20.000 --> 00:31:24.999
in our own way with metaphors
that are familiar to us.

00:31:25.000 --> 00:31:29.999
I mean the thing about My American
Cousin (inaudible) great Canadian movie,

00:31:30.000 --> 00:31:34.999
it started out as an idea, as a dream that
somebody had, as a memory of childhood.

00:31:35.000 --> 00:31:39.999
And from that sort of spark

00:31:40.000 --> 00:31:44.999
comes a wonderful piece
of Canadian culture.

00:31:45.000 --> 00:31:49.999
And we have to create a… an
environment in which those sparks

00:31:50.000 --> 00:31:54.999
can slowly be fanned into something
that’s actually fabulous.

00:31:55.000 --> 00:31:59.999
I like to see us resolve
our economic problems

00:32:00.000 --> 00:32:04.999
on our own terms and in the context of
our own traditions and our own history.

00:32:05.000 --> 00:32:09.999
I think it’s a great credit to our country

00:32:10.000 --> 00:32:14.999
that we share a border with one of the giants
of the world and yet we have really kept it

00:32:15.000 --> 00:32:19.999
for our distinct culture in many ways. I think
in terms of how it’s seen around the world

00:32:20.000 --> 00:32:24.999
it’s seen as a reasonably peaceful society.
Now imagine if we become

00:32:25.000 --> 00:32:29.999
economically dependent under a free trade arrangement
that we want to do something about water,

00:32:30.000 --> 00:32:34.999
we want to do something foreign
policy on the cruise missile,

00:32:35.000 --> 00:32:39.999
do we have the ability as a sovereign state to make those
decisions, I don’t think we do. We’re not talking about free trade

00:32:40.000 --> 00:32:44.999
between two countries of equal size, we’re not talking
about anything like the European common market arrangement

00:32:45.000 --> 00:32:49.999
where you have countries of
similar sizes joining together,

00:32:50.000 --> 00:32:54.999
you’re talking about a nation much smaller
in size against the giant of the world.

00:32:55.000 --> 00:32:59.999
[sil.]

00:33:00.000 --> 00:33:04.999
Free trade could mean turning Canadian society
inside out in an attempt to solve a few thorny trade

00:33:05.000 --> 00:33:09.999
irritants, and to top it off

00:33:10.000 --> 00:33:14.999
there is no guarantee that the US wouldn’t
continue to impose countervailing duties

00:33:15.000 --> 00:33:19.999
whenever they felt we were unfairly subsidizing our own industries.
For decades, you know, not just for the last two or three years,

00:33:20.000 --> 00:33:24.999
but we have competed fairly for decades.
(inaudible), it’s unbelievable.

00:33:25.000 --> 00:33:29.999
What I’ve been arguing is
we have problems in lumber,

00:33:30.000 --> 00:33:34.999
you got to talk about those and try and work those out
as best you can. You have problems in the fisheries,

00:33:35.000 --> 00:33:39.999
you have problems in hogs (inaudible)
you’ve got to try and work those out.

00:33:40.000 --> 00:33:44.999
The way not to work and what it seems to me I say,
but we’re going to trade lumber off for potash

00:33:45.000 --> 00:33:49.999
and we’re going to trade this off for something
else and become more economically integrated

00:33:50.000 --> 00:33:54.999
with United States. I don’t think it makes any sense and
I think we’re really are going down the wrong road here.

00:33:55.000 --> 00:33:59.999
[music]

00:34:00.000 --> 00:34:04.999
For over 40 years,

00:34:05.000 --> 00:34:09.999
Canada has tried to balance it’s close
relationship with United States

00:34:10.000 --> 00:34:14.999
with solid trading relationships with
many other countries around the world.

00:34:15.000 --> 00:34:19.999
We have bargained for the trade liberalization we have
needed through a multilateral negotiating form GATT,

00:34:20.000 --> 00:34:24.999
or the General Agreement
on Tariffs and Trade.

00:34:25.000 --> 00:34:29.999
The chairperson of the
Economic Council of Canada

00:34:30.000 --> 00:34:34.999
believes in multilateral rather
than a bilateral approach

00:34:35.000 --> 00:34:39.999
is the still the route to take.
Not only because you gain…

00:34:40.000 --> 00:34:44.999
you can gain more in the economic sense
from that wider access to other markets,

00:34:45.000 --> 00:34:49.999
but also because there are fewer
concerns that arise from that

00:34:50.000 --> 00:34:54.999
with respect to our sovereignty and our culture
and these other arguments that are made

00:34:55.000 --> 00:34:59.999
against trade liberalization.
I think that the

00:35:00.000 --> 00:35:04.999
whole trend in the world economy is toward
interdependence, the sort of globalization of production

00:35:05.000 --> 00:35:09.999
and the multilateral approach is… is the…

00:35:10.000 --> 00:35:14.999
the natural response to this.
Unfortunately, it’s also the most

00:35:15.000 --> 00:35:19.999
difficult change to negotiate because you have
hundreds literally, a hundred countries participating

00:35:20.000 --> 00:35:24.999
in the negotiations, that’s more
difficult than a one-on-one

00:35:25.000 --> 00:35:29.999
with the United states. You
can debate the pros and cons

00:35:30.000 --> 00:35:34.999
of free trade forever. We can
never really know the answer

00:35:35.000 --> 00:35:39.999
to this question. But what we can know
is that it’s very difficult for us

00:35:40.000 --> 00:35:44.999
to survive on this continent beside the
dynamism and great power of the United States

00:35:45.000 --> 00:35:49.999
it always has been. And we’ve
always had an instinct about that

00:35:50.000 --> 00:35:54.999
and understand that it’s very, very difficult
to get into bed with that huge elephant,

00:35:55.000 --> 00:35:59.999
the Americans terribly
difficult thing for Canada.

00:36:00.000 --> 00:36:04.999
And if we want to survive as a distinct society,
we’ve always had to know what are the limits,

00:36:05.000 --> 00:36:09.999
to what extension we go for the opportunities,
but to what extent should we draw the line.

00:36:10.000 --> 00:36:14.999
[music]

00:36:15.000 --> 00:36:19.999
We could be betting on the wrong horse.

00:36:20.000 --> 00:36:24.999
We’re considering tying ourselves to the US right
at the time when America isn’t doing so well.

00:36:25.000 --> 00:36:29.999
American industry is lagging behind.

00:36:30.000 --> 00:36:34.999
We’re talking about free trade
with the United States today

00:36:35.000 --> 00:36:39.999
because we’re afraid of their protectionism. We are
afraid of their protectionism which is arising

00:36:40.000 --> 00:36:44.999
because they have such a huge trade deficit with
the rest of the world including a very large trade

00:36:45.000 --> 00:36:49.999
deficit with Canada. So we want to be
assured access to the American market.

00:36:50.000 --> 00:36:54.999
The reason the Americans have
such a large trade deficit

00:36:55.000 --> 00:36:59.999
is because their industrial strategies in
the 1970s and 80s haven’t worked as well

00:37:00.000 --> 00:37:04.999
as those in the number of western
European countries and in Japan.

00:37:05.000 --> 00:37:09.999
We usually look south of the border for
solutions to our economic problems,

00:37:10.000 --> 00:37:14.999
but how are some of these other
countries staying on course.

00:37:15.000 --> 00:37:19.999
If free trade isn’t the
answer what are our options.

00:37:20.000 --> 00:37:24.999
I believe the United States it
has something to offer to us,

00:37:25.000 --> 00:37:29.999
but not as much as we can learn
from other parts of the world.

00:37:30.000 --> 00:37:34.999
Certain countries like Japan, Germany,
England, and France are in some aspects

00:37:35.000 --> 00:37:39.999
are far ahead of us in respect to not only
technologies, but people involvement programs,

00:37:40.000 --> 00:37:44.999
there is whole world out there. I
think it’s too narrow to just say

00:37:45.000 --> 00:37:49.999
the States is the end of the all.

00:37:50.000 --> 00:37:58.000
[music]

00:38:05.000 --> 00:38:09.999
People in the English speaking world
tend to underestimate France,

00:38:10.000 --> 00:38:14.999
regarding the country as the romantic home of
wine drinkers and bureaucrats, but the fact is

00:38:15.000 --> 00:38:19.999
for the past 25 years France’s economy has
growing faster than the economies of Canada,

00:38:20.000 --> 00:38:24.999
the United States and West Germany.

00:38:25.000 --> 00:38:29.999
Since France was liberated
at the end of World War II

00:38:30.000 --> 00:38:34.999
the French Government has attempted to elevate
economic planning above party warfare

00:38:35.000 --> 00:38:39.999
rather than a series of stop go strategies

00:38:40.000 --> 00:38:44.999
depending on who is in power. France has had
a tradition of designing long-term plans

00:38:45.000 --> 00:38:49.999
that have become the bedrock
on which the economy is built.

00:38:50.000 --> 00:38:54.999
The early 80s were time of
economic crisis for many countries

00:38:55.000 --> 00:38:59.999
and France was no exception, it
responded with the new program.

00:39:00.000 --> 00:39:04.999
The new theme of the government was modernization.
What the government wanted to do now

00:39:05.000 --> 00:39:09.999
was to open up new industries,
modernize the country

00:39:10.000 --> 00:39:14.999
and make France competitive
in the late 20th century.

00:39:15.000 --> 00:39:23.000
[music]

00:39:25.000 --> 00:39:29.999
France is not Japan, is
not the United States,

00:39:30.000 --> 00:39:34.999
but it is competitive and
very good in many areas.

00:39:35.000 --> 00:39:39.999
Where they’re good in electronic, where
they’re good in the space industry,

00:39:40.000 --> 00:39:44.999
we’re also doing a lot of interesting research in new
biology, new chemistry, but we’re very, very good,

00:39:45.000 --> 00:39:49.999
we’re even excellent I am not
being chauvinistic, in metros

00:39:50.000 --> 00:39:54.999
and tubes and trains.

00:39:55.000 --> 00:39:59.999
[sil.]

00:40:00.000 --> 00:40:04.999
If you’re like me and you love train travel,
but you’re not crazy about plane travel

00:40:05.000 --> 00:40:09.999
then this is the train for you. It’s a train from Paris
to the South of France. It goes 260 kilometers an hour.

00:40:10.000 --> 00:40:14.999
This train system is an interesting example

00:40:15.000 --> 00:40:19.999
of public sector, private sector corporation and
management. France is not an economic super power

00:40:20.000 --> 00:40:24.999
so what it’s done is to choose
areas of specialization

00:40:25.000 --> 00:40:29.999
and transportation is one of those areas.
Like Canada,

00:40:30.000 --> 00:40:34.999
France is still struggling to find it’s
way. In the 80s a fierce political debate

00:40:35.000 --> 00:40:39.999
is raged in France about the direction
of the economy, but it is undeniable

00:40:40.000 --> 00:40:44.999
that private sector, public sector planning has
effectively sphere headed new areas of growth.

00:40:45.000 --> 00:40:49.999
In Canada, our approach is quite different,

00:40:50.000 --> 00:40:54.999
sure we’ve developed our
areas of excellence.

00:40:55.000 --> 00:40:59.999
(inaudible) is a mathematician
and a computer programmer.

00:41:00.000 --> 00:41:04.999
Her early learning program meme is
delighting children throughout the world.

00:41:05.000 --> 00:41:09.999
[music]

00:41:10.000 --> 00:41:14.999
Canadians excel

00:41:15.000 --> 00:41:19.999
at producing software, we have more
computer programmers per capita

00:41:20.000 --> 00:41:24.999
than any other country.

00:41:25.000 --> 00:41:29.999
The same goes for telecommunications
and synthetic fuel technologies.

00:41:30.000 --> 00:41:34.999
We’re world class.

00:41:35.000 --> 00:41:39.999
There is absolutely no doubt that telecommunication and
electronics have been standing and they’ve driven by the fact

00:41:40.000 --> 00:41:44.999
that we needed that for the country, in the same sense that
the railway road went across the country in the last century

00:41:45.000 --> 00:41:49.999
to pull the country together. Electronic telecommunications
has played that kind of a role in this century.

00:41:50.000 --> 00:41:54.999
[sil.]

00:41:55.000 --> 00:41:59.999
We’re anywhere from five to 10 years ahead of the
Americans in developing synthetic fuel technology.

00:42:00.000 --> 00:42:04.999
This is one of the few industries in Canada in which
we can honestly see we are the world leaders,

00:42:05.000 --> 00:42:09.999
we are not a… we are not a nation of losers.
We… we have some… some parts of our economy

00:42:10.000 --> 00:42:14.999
that are losers in the world sense that
may essentially have to go by the boards,

00:42:15.000 --> 00:42:19.999
but we have some other things, some emerging
sectors in the economy in which we’re leaders.

00:42:20.000 --> 00:42:24.999
We can afford to stand up and be
kind of with the best of them.

00:42:25.000 --> 00:42:29.999
Canada is not a nation of slouches,
but our approach to targeting

00:42:30.000 --> 00:42:34.999
and then developing potential areas for
growth has been rather really willy-nilly.

00:42:35.000 --> 00:42:39.999
We’ve lacked a central vision. Federal provincial attentions
have weakened us. We simply can’t agree on the economic goals.

00:42:40.000 --> 00:42:44.999
This lack of a coherent direction has
weakened our ability to compete.

00:42:45.000 --> 00:42:49.999
Countries like France which are pursued
deliberate national economic strategies

00:42:50.000 --> 00:42:58.000
to promote economic
growth have had the edge.

00:43:00.000 --> 00:43:08.000
[music]

00:43:10.000 --> 00:43:14.999
Stockholm, Sweden is acquaint
almost ancient city,

00:43:15.000 --> 00:43:19.999
so there is nothing acquaint about Sweden
as an industrial power, this small country

00:43:20.000 --> 00:43:24.999
with a population and size that’s smaller than
that of Ontario’s is a real industrial dynamo.

00:43:25.000 --> 00:43:29.999
And an interesting question for
Canadians is, how did the Swedes do it?

00:43:30.000 --> 00:43:34.999
Throughout the world, Sweden is known
as the home of Volvo, Electrolux,

00:43:35.000 --> 00:43:39.999
IKEA, (inaudible) Pippi Longstocking
and great hockey players.

00:43:40.000 --> 00:43:44.999
But 100 years ago,

00:43:45.000 --> 00:43:49.999
Sweden was one of the most
backward countries in Europe,

00:43:50.000 --> 00:43:54.999
mainly dependent on agriculture and forestry
Swedish farmers were desperately poor

00:43:55.000 --> 00:43:59.999
and the forests had nearly disappeared.
They had been recklessly eluded.

00:44:00.000 --> 00:44:04.999
[sil.]

00:44:05.000 --> 00:44:09.999
With the coming of the
industrial revolution,

00:44:10.000 --> 00:44:14.999
Sweden realized how valuable it’s forests
could be. So it moved from an exploitative

00:44:15.000 --> 00:44:19.999
to a sustained yield forest policy.

00:44:20.000 --> 00:44:24.999
Through a program of strict government regulations,
generous grants for Silver Culture Programs

00:44:25.000 --> 00:44:29.999
an extensive research and development,
Sweden rebuilt it’s forests.

00:44:30.000 --> 00:44:34.999
The forestry is very important for Sweden.

00:44:35.000 --> 00:44:39.999
We are always trying to… to get better and
better forest, more and more forests.

00:44:40.000 --> 00:44:44.999
And I think today we have more
forests in Sweden than we had before

00:44:45.000 --> 00:44:49.999
and more than we ever had.
The lesson Sweden learned

00:44:50.000 --> 00:44:54.999
100 years ago was to
think in the long-term,

00:44:55.000 --> 00:44:59.999
to plan for the future.

00:45:00.000 --> 00:45:04.999
I think we have a good balance in people’s
expectations, management expectations,

00:45:05.000 --> 00:45:09.999
and government expectations. We
go for long-term development

00:45:10.000 --> 00:45:14.999
long-term profits and I think

00:45:15.000 --> 00:45:19.999
in comparison with North America,

00:45:20.000 --> 00:45:24.999
Canada and the United States

00:45:25.000 --> 00:45:29.999
you tend to go for a short-term profits and

00:45:30.000 --> 00:45:34.999
I don’t think it’s good.
People live for long time

00:45:35.000 --> 00:45:39.999
and we want generations to stay.
Swedes will usually complain

00:45:40.000 --> 00:45:44.999
about high taxes as well as the deficit,

00:45:45.000 --> 00:45:49.999
but they are also proud of their country’s
efforts to build the just society

00:45:50.000 --> 00:45:54.999
and they realized that maintaining
their high standard of living requires

00:45:55.000 --> 00:45:59.999
a competitive manufacturing
sector with high profits.

00:46:00.000 --> 00:46:04.999
Thirty years ago, Sweden launched
a long-term industrial strategy

00:46:05.000 --> 00:46:09.999
that could be described
in one word, automation.

00:46:10.000 --> 00:46:14.999
Yeah, I think it’s quite
clear that the (inaudible)

00:46:15.000 --> 00:46:19.999
they have big markets, whole markets and they
can manufacture in higher production scales

00:46:20.000 --> 00:46:24.999
and we can in Sweden and perhaps
you in Canada. And therefore

00:46:25.000 --> 00:46:29.999
I think that these new technology is very valuable
for the small countries and small industries

00:46:30.000 --> 00:46:34.999
which can with this new technology
automize and be competitive

00:46:35.000 --> 00:46:39.999
with the big companies
and the big companies.

00:46:40.000 --> 00:46:44.999
Swedish workers have generally
welcomed automation,

00:46:45.000 --> 00:46:49.999
whether it’s data processing
in Volvo’s general offices,

00:46:50.000 --> 00:46:54.999
or on the floor one of it’s plants.

00:46:55.000 --> 00:46:59.999
In robotics, we think taking away bad
jobs, the productivity in the company

00:47:00.000 --> 00:47:04.999
will be higher. Volvo
and Sweden are smaller.

00:47:05.000 --> 00:47:09.999
We have to be like our boss says

00:47:10.000 --> 00:47:14.999
best in the world and new technology means

00:47:15.000 --> 00:47:19.999
for us employment.

00:47:20.000 --> 00:47:24.999
Can you really love a robot? In Canada,

00:47:25.000 --> 00:47:29.999
many of us are not sure about high tech. To a
very large extent, it really is a beneficial

00:47:30.000 --> 00:47:34.999
contribution to our lives,
we can do things now

00:47:35.000 --> 00:47:39.999
that we couldn’t do before,
but at the same time

00:47:40.000 --> 00:47:44.999
high tech does disrupt people’s lives.
It’s… by it’s very pervasiveness

00:47:45.000 --> 00:47:49.999
it’s changing the way the workplace operates,
it’s changing the way offices are structured.

00:47:50.000 --> 00:47:54.999
Right now, over one in three
women work in clerical jobs,

00:47:55.000 --> 00:47:59.999
technology will really change the
whole way clerical work is organized.

00:48:00.000 --> 00:48:04.999
And some women will do better, but the vast majority of women are going
to either lose their jobs or be in jobs that are more regimented,

00:48:05.000 --> 00:48:09.999
more factory light, best interesting.
So you have a real polarization

00:48:10.000 --> 00:48:14.999
with some women doing well
and other women doing worse.

00:48:15.000 --> 00:48:19.999
I think first of all the key question is job security,
these companies are bringing in all kinds of technology

00:48:20.000 --> 00:48:24.999
and so on, it’s just throwing thousands
more people out of work almost everyday.

00:48:25.000 --> 00:48:29.999
The reason to automate and put robotics
in is to reduce labor, right, obviously,

00:48:30.000 --> 00:48:34.999
so when you do that that means you could get it to
such an extent that you hardly use any labor right.

00:48:35.000 --> 00:48:39.999
What next? What do we do about this that there
are not going to be more jobs available,

00:48:40.000 --> 00:48:44.999
and how do we resolve it and how
do we share them. Our business,

00:48:45.000 --> 00:48:49.999
labor, and government have got to
get together and stay together.

00:48:50.000 --> 00:48:54.999
This is what has happened in Sweden,
to a system of codetermination

00:48:55.000 --> 00:48:59.999
labor, business, and government
worked together. They’ve been able

00:49:00.000 --> 00:49:04.999
to allocate the burdens of
economic adjustment cooperatively.

00:49:05.000 --> 00:49:09.999
Codetermination in Sweden is based on
a very long tradition of negotiating

00:49:10.000 --> 00:49:14.999
between equally strong bodies.

00:49:15.000 --> 00:49:19.999
You have to have real negotiations with the…
with the unions before we make any major changes

00:49:20.000 --> 00:49:24.999
in the workplace, in the
production, in the planning

00:49:25.000 --> 00:49:29.999
that’s what it is and if the union says no
then you have to start it all over again.

00:49:30.000 --> 00:49:34.999
[sil.]

00:49:35.000 --> 00:49:39.999
There is not always labor management
harmony, but Swedish workers

00:49:40.000 --> 00:49:44.999
have had a powerful voice in determining how
new technologies affect people’s lives.

00:49:45.000 --> 00:49:49.999
And ensuring generous support for workers
moving out of unproductive areas

00:49:50.000 --> 00:49:54.999
of the economy into new expanding ones,

00:49:55.000 --> 00:49:59.999
and in democratizing the workplace.

00:50:00.000 --> 00:50:04.999
This is included providing
more opportunities for women.

00:50:05.000 --> 00:50:09.999
Karen is head of her work team.
I have quite a lot of

00:50:10.000 --> 00:50:14.999
responsibility. I have
to know a lot of things

00:50:15.000 --> 00:50:19.999
about the machines and I get quite a
lot of education from the company.

00:50:20.000 --> 00:50:24.999
Volvo has make big efforts

00:50:25.000 --> 00:50:29.999
in getting women to get the tougher
jobs the more difficult jobs

00:50:30.000 --> 00:50:34.999
and they have classes for
women only for women.

00:50:35.000 --> 00:50:39.999
[sil.]

00:50:40.000 --> 00:50:44.999
These days the inventiveness and the creativity of
a country’s population count like never before.

00:50:45.000 --> 00:50:49.999
Education from retraining or
upgrading programs for adults

00:50:50.000 --> 00:50:54.999
to the public school system
lays the foundation. In Canada,

00:50:55.000 --> 00:50:59.999
our educational institutions are
suffering from fiscal belt tightening.

00:51:00.000 --> 00:51:04.999
State of our education right now
unfortunately is not what it should be.

00:51:05.000 --> 00:51:09.999
The percentage of our
gross national product

00:51:10.000 --> 00:51:14.999
that government spent on
education is not good in Canada

00:51:15.000 --> 00:51:19.999
it runs about half of what some of the
leading countries spend in the world,

00:51:20.000 --> 00:51:24.999
but more significantly it’s declining.

00:51:25.000 --> 00:51:29.999
Well, I would say our priorities are all wrong. You know, everything, our highways
and everything they spend all the money on all the flashy right now things,

00:51:30.000 --> 00:51:34.999
but they don’t think about education
is, you know, a long-term thing.

00:51:35.000 --> 00:51:39.999
They don’t think about the kids that are in school
right now are going to be running the country,

00:51:40.000 --> 00:51:44.999
you know, in the years to come.
They don’t think about that.

00:51:45.000 --> 00:51:49.999
We’ve really believed in the
intellect of… of a human being

00:51:50.000 --> 00:51:54.999
as being the chief natural resource of a
country. At the same, we are lucky the good news

00:51:55.000 --> 00:51:59.999
is that we have natural resources
and we don’t have to be the best

00:52:00.000 --> 00:52:04.999
in all the intellectual areas. The bad
news that we have natural resources

00:52:05.000 --> 00:52:09.999
and therefore we’re not even trying in the other
areas and that’s… that’s Canada’s dilemma.

00:52:10.000 --> 00:52:14.999
[music]

00:52:15.000 --> 00:52:19.999
We’re all being forced to adapt,
even Japan the wiz kid on the block.

00:52:20.000 --> 00:52:24.999
No one thought the Japanese car
industry could be contested,

00:52:25.000 --> 00:52:29.999
but now countries like South Korea are turning
out cars more cheaply than anyone else,

00:52:30.000 --> 00:52:34.999
and Japan is looking at Sweden and West
Germany with specializing precision

00:52:35.000 --> 00:52:39.999
made luxury automobiles. They’re
leaving the economy cars

00:52:40.000 --> 00:52:44.999
to the newly industrializing countries.

00:52:45.000 --> 00:52:49.999
The competitive ways of the advanced
industrialized countries is to move

00:52:50.000 --> 00:52:54.999
from high volume standardized production
which other countries excel at

00:52:55.000 --> 00:52:59.999
to more flexible specialized
systems of production.

00:53:00.000 --> 00:53:04.999
Industries of the future will have
more research and development

00:53:05.000 --> 00:53:09.999
and human skills and technology
invested in them. Northern Telecom,

00:53:10.000 --> 00:53:14.999
Canada’s telecommunication giant
has built the largest research

00:53:15.000 --> 00:53:19.999
and development facility in the country.
We set out to

00:53:20.000 --> 00:53:24.999
commit to significant investments
in R&D every year,

00:53:25.000 --> 00:53:29.999
and we have built a center of excellence

00:53:30.000 --> 00:53:34.999
in high technology in telecommunications
in that center that really has proved

00:53:35.000 --> 00:53:39.999
a tremendous value to
Canada and of course to us.

00:53:40.000 --> 00:53:44.999
We have invested totally
and adequately in research

00:53:45.000 --> 00:53:49.999
and development as a country. If you look at some
of the leading technology countries in the world

00:53:50.000 --> 00:53:54.999
whether it’s Japan, West Germany,
they generally fund research

00:53:55.000 --> 00:53:59.999
and development to the extent of about
two and a half or three percent

00:54:00.000 --> 00:54:04.999
of their gross national product.
Canada consistently runs at one-third

00:54:05.000 --> 00:54:09.999
to one half of that and if we’re going
to be competing on a world scale

00:54:10.000 --> 00:54:14.999
in current technologies to establish
ourselves as competitive,

00:54:15.000 --> 00:54:19.999
we’re going to have to make the same kind of investment
and we’re just not doing that. We’re lazy fair type of

00:54:20.000 --> 00:54:24.999
people in the sense that we wait too
long to see everybody else is doing.

00:54:25.000 --> 00:54:29.999
I think it’s time we get off our butts and get
out there and basically get more innovative,

00:54:30.000 --> 00:54:34.999
more progressive and take on the people in… in the other
countries and the United States, Japan or Germany.

00:54:35.000 --> 00:54:43.000
[music]

00:54:55.000 --> 00:54:59.999
Western Europeans as well as the Japanese
have developed very distinctive countries

00:55:00.000 --> 00:55:04.999
each with it’s own history, it’s
own culture and traditions.

00:55:05.000 --> 00:55:09.999
Yet there are striking similarities
in the way they run their economies.

00:55:10.000 --> 00:55:14.999
What they’ve done is combined
long-term strategic planning

00:55:15.000 --> 00:55:19.999
with entrepreneurship
and private initiative.

00:55:20.000 --> 00:55:24.999
They’ve gone after special market niches
which makes sense for their countries

00:55:25.000 --> 00:55:29.999
and each of these countries have succeeded in making
itself very competitive these over the United states.

00:55:30.000 --> 00:55:34.999
There is an irony in Canada
negotiating a free trade agreement

00:55:35.000 --> 00:55:39.999
with the United States at this moment in our
history. If we negotiate such an agreement,

00:55:40.000 --> 00:55:44.999
it means that we’ll have a more market
driven economy less ability to carry out

00:55:45.000 --> 00:55:49.999
long-term strategic
planning of the economy.

00:55:50.000 --> 00:55:54.999
The irony is that we’re forgetting how we
built this country. We built this country

00:55:55.000 --> 00:55:59.999
through a combination of public planning and
private initiative, that’s what made it possible

00:56:00.000 --> 00:56:04.999
for us to create a country here from
sea to sea and those principles

00:56:05.000 --> 00:56:09.999
are the same as those being used in the successful
industrial economies we’ve been looking

00:56:10.000 --> 00:56:14.999
at like Sweden and Japan and France.

00:56:15.000 --> 00:56:19.999
Free trade would mean moving over to the American system and
exactly the moment in history when that system is revealing

00:56:20.000 --> 00:56:24.999
fundamental weaknesses.
There are economic policies

00:56:25.000 --> 00:56:29.999
that will enable us to do
better than we’re doing

00:56:30.000 --> 00:56:34.999
unless address them first before we begin to depend on
somebody else pulling all of our irons out of the fire

00:56:35.000 --> 00:56:39.999
because they’re not going to. So our
best relations with the United States

00:56:40.000 --> 00:56:44.999
would be as a nation that is itself independent
and has something of it’s own to offer.

00:56:45.000 --> 00:56:49.999
When this Nova Scotia farm

00:56:50.000 --> 00:56:54.999
was established in 1816, Canada
was a colony of Great Britain,

00:56:55.000 --> 00:56:59.999
today we’re very much an economic
dependency of the United States.

00:57:00.000 --> 00:57:04.999
Three and a half centuries of making our living
be independent on outside more powerful countries

00:57:05.000 --> 00:57:09.999
has left a deep mark on us.
Yet if we want to

00:57:10.000 --> 00:57:14.999
avoid being the victims of the economic transformation
that’s underway between now and the end of the century

00:57:15.000 --> 00:57:19.999
we got to make a lot of changes, and
the first thing we have to change

00:57:20.000 --> 00:57:24.999
is the way we think about ourselves.

00:57:25.000 --> 00:57:28.999
The difference is when you see
Canada and you hear Canada

00:57:29.000 --> 00:57:31.999
then you know it’s not a country like the United States. It’s remarkable,
we have remarkable civilization here, we’re not a nation of losers.

00:57:32.000 --> 00:57:34.999
We just have to be careful that our people are employed and then our resources are used responsibly. We have really believed in
the intellect of a human being has been the chief natural resource of the country. The very destiny of our country is at stake.

00:57:35.000 --> 00:57:43.000
I think it’s time we get of our butts and basically get more innovative, more progressive and take on the people in other countries.
I like to it’s resolved, our economic problems on our own terms and in the context of our own traditions and our own history.