Free Trade: Neither Free Nor About Trade

Edelgard E. Mahant is a professor of political science at York
University, and co-author of An Introduction to Canadian–American
Relations.

Of the many left-wing critiques of the Canada–U.S. Free Trade
Agreement (FTA), this is one of the best. Merrett has studied his topic
thoroughly and does not just spout unsupported dogma. He begins with an
intellectual critique of the idea of free trade, pointing out that it is
an intellectual construct that leads to specific policy choices. “Free
trade,” he writes, “is not a universal economic theory” that is
necessarily neutral or rational.

In the next chapter, in gauging the FTA’s effects on Canada’s
economy, he makes a compelling case that the Canadian economy has fared
worse than that of the U.S. since the FTA came into force. A later
chapter develops his central thesis—that the FTA was meant not to
“free” trade, but instead to discipline the Canadian labor force
into accepting lower wages and less-generous social programs. Merrett is
careful not to overstate his case; he makes no claims, for example,
involving a conspiracy between the American and the Canadian
bourgeoisie.

The book has shortcomings. The author deplores the loss of Canadian
sovereignty as though sovereignty were an ethical principle on the same
level as the social justice and regional equality whose passing he
mourns in the same paragraph; neither sovereignty nor free trade are
neutral, universal principles. There are also some factual errors. John
Crispo has never been the president of the CBC, and the FTA does not
obligate Canadian cable companies to carry all the American commercials
that come with the programs they pick up. All in all, however, Free
Trade is an informative and carefully researched assessment of the
economic impact of the FTA, both at the micro level of the individual
firm and at the macro level of the overall economy.