On October 13, 1999, the WTO issued an interim ruling against the Auto Pact, the historic managed trade agreement on which we have built and continue to support a productive and competitive manufacturing sector. On October 4, 2000, the WTO gave Canada eight months to comply with that ruling.

Statement from the House of Commons, October 14, 1999:

Mr. Bill Blaikie (Winnipeg—Transcona, NDP): Mr. Speaker, yesterday the World Trade Organization issued an interim ruling ordering Canada to scrap the auto pact, the latest casualty of the Liberal government's liberalization at any cost trade policy.

The auto pact is a model of fair managed trade providing auto manufacturers with duty free access to Canadian markets on the condition that they make significant investments in Canadian jobs and communities.

The auto pact has played a key role in the creation of family supporting jobs in the manufacturing sector. Auto companies working within the rules of the auto pact employ eight times as many workers in Canada as those who do not.

The Liberals say they care about the auto pact but it was these same Liberals who negotiated the rules which the WTO is now using to kill the auto pact. It was these same Liberals who assured Canadians that the auto pact would be safeguarded.

It is incumbent on the Liberals now to find a way to uphold the principles of the auto pact and support Canadian jobs. It must appeal the WTO ruling, rethink its uncritical and simplistic commitment to free trade, and failing all this, develop equivalent policies that reward auto manufacturers for investing in Canadian jobs and communities.

MEDIA RELEASE - October 14, 1999:

LIBERALS MUST UPHOLD AUTO PACT PRINCIPLES: NDP

OTTAWA – In light of yesterday’s interim WTO ruling against the auto pact, NDP Trade Critic Bill Blaikie has written an open letter to International Trade Minister Pierre Pettigrew urging him to uphold the principles of the auto pact.

“The auto pact enshrines the principle that access to Canadian markets should be conditional on a serious commitment to invest in Canadian jobs and communities. As a proven example of fair managed trade, it should be a model for all Canadian trade policy. Instead it is the latest casualty of the Liberals’ ‘liberalisation-at-any-cost’ trade policy,” said Mr. Blaikie.

Auto companies working within the rules of the auto pact employ eight times as many workers as those that do not. Auto manufacturing remains the heart of Canada’s manufacturing sector. The Big Three auto manufacturers support, directly and indirectly, nearly one million jobs, including 30% of jobs in the steel industry.

“Although the Liberals say they support the auto pact, it was those same Liberals who negotiated the rules the World Trade Organisation is now using to attack the auto pact. It is incumbent on the Liberals to find a way to uphold the principles of the auto pact and support Canadian jobs,” said Mr. Blaikie.

Mr. Blaikie called on Minister Pettigrew to appeal this WTO ruling, and to work with auto workers and their employers to develop equivalent policies that reward auto manufacturers for investing in Canadian jobs and communities.

A copy of Mr. Blaikie’s letter is attached.

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OPEN LETTER TO THE MINISTER OF INTERNATIONAL TRADE:

October 14, 1999

The Honourable Pierre Pettigrew Minister of International Trade House of Commons Ottawa, ON K1A 0A6

Dear Mr. Pettigrew,

It is with great concern that I read media reports of yesterday’s interim World Trade Organisation ruling against the Auto Pact.

Auto companies working within the rules of the Auto Pact employ eight times as many workers as those that do not. Auto manufacturing remains the heart of Canada’s manufacturing sector. The Big Three auto manufacturers support, directly and indirectly, nearly one million jobs, including 30% of jobs in the steel industry.

The Auto Pact is a model of fair managed trade. It enshrines the principle that access to Canadian markets should be conditional on a significant commitment to invest in Canadian jobs and communities. This principle should be the basis for all Canadian trade policy. Instead it is the latest casualty of your “liberalisation-at-any-cost” trade policy.

Despite the Liberal Party’s longstanding promise to protect the Auto Pact, your government negotiated these rules that the World Trade Organisation is using to attack the Auto Pact. It is therefore incumbent on you to find a way to uphold the principles of the Auto Pact and support Canadian jobs.

I implore you to mount a credible appeal of this WTO ruling, and to work with auto workers and their employers to develop equivalent policies that reward auto manufacturers for investing in Canadian jobs and communities.

It is also worth pointing out that the Auto Pact is only the latest victim of your trade policy. The growing list of Canadian public policies that have fallen to international trade disputes includes access to affordable generic drugs, fisheries conservation, support for Canadian publishing, toxic fuel additive standards, and research and development support for Canada’s high technology sectors. Surely, it is time to rethink your government’s failed trade policy.

Yours sincerely,

Bill Blaikie, MP NDP International Trade Critic

Question Period - October 15, 1999:

Mr. Bill Blaikie (Winnipeg—Transcona, NDP): Mr. Speaker, my question is for the Deputy Prime Minister who is one of the few members of parliament today who was here when the auto pact came into being. He was probably here as well when parliament and Canadians were assured that the auto pact would not be endangered by the WTO. Given the number of jobs that are threatened by the WTO decision, many in his home city of Windsor, what does the government plan to do to safeguard the auto pact and the tens of thousands of jobs that are associated with that managed trade?

Hon. Herb Gray (Deputy Prime Minister, Lib.): Mr. Speaker, I am pleased the hon. member has recognized what Liberal governments have done over the years to build the auto industry. This endorsement by the NDP will be listened to carefully by people in Windsor and other automotive cities. I assure the hon. member that we are looking very carefully at the interim ruling which has been received in confidence. We will be making our representations to the WTO with respect to what should be in any final ruling and we will act in our responsibilities as we always have to protect the interests of Canadian workers—

Question Period - October 4, 2000:

Mr. Bill Blaikie (Winnipeg—Transcona, NDP): Mr. Speaker, my question is for the Minister for International Trade.

Despite many assurances that free trade agreements like the WTO and the Canada-U.S. Free Trade Agreement would not affect managed trade like the Auto Pact, we are now in a situation where the WTO has ruled against the Auto Pact and will be making further regulations as to how Canada can comply with that ruling.

What does the government intend to do to protect the jobs of all those auto workers who have a right to expect that security which they have become accustomed to and which was the backbone of the Ontario economy? What is the minister going to do to protect those jobs in the auto industry?

Hon. Pierre S. Pettigrew (Minister for International Trade, Lib.): Mr. Speaker, we are of course extremely pleased with the health of the auto industry in Canada. It is extremely dynamic. It is doing very well.

I can tell the House that we are absolutely confident that the industry will continue on its very healthy progress of the last few years.

As for the WTO decision, we had asked for ten and a half months to implement the decision. We were very pleased that we were given eight months. We will respect that international commitment to the WTO that protects Canadian interests around the world all the time because we need a rules based system.