The Oncoming Era of the Globalized Free Trade

              Frank  July 30 2013

 http://frank-waterloo.blog.163.com/blog/static/205239029201363123424261/

    The Financial Crisis 2008 has caused global economic recession, but also, as side effect, it has been playing a role of pushing governments to actively seek new way out. In which process, the significant one should be the transcontinental promotion of free trade. Since that governors of world's major economies, such as, that of Canada, U.S., EU, China, etc. are actively promoting the trade liberalization in coincidentally working toward a same goal, a unprecedented Era of Globalized Free Trade is taking shape quickly.

    I think that the effect of the Globalized Free Trade is not inferior to that of industrial revolution.

    Currently, for the progress of globalization of free trade, the most important step should be the TPP negotiations. As a role of embryo of a new market, TPP is most likely to grow into the basic platform of globalized free trade with continuing to attract or force the market of other countries joining together.

When people's attention is being attracted by the performances of the two economic powers taking himself as the protagonist in TPP negotiations with the positions of late comers in an act play of the Great Drama - free trade globalization, I think that people seem to have ignored a more noteworthy state – Canada that has been playing the role of leadership on the world stage at the forefront of trade liberalization.

Canada is far ahead in the movement of free trade globalization 

As a multi-party democratic Country, the Government of Canada is most rational in many aspects. As that, when many other countries' politicians in meaningless-endless bickering for the interest of small group of individuals with ignoring even harming the interest of their country or even the world, the politicians of Canada has been in rational action with practical accomplishments already for exploring the international market.   

February 13, 2012, the website of Foreign Affairs and International Trade Canada published <Canada’s TPP Engagement Continues with Minister Fast-led Visits to Malaysia, Singapore and Brunei> said that: 

“Following Prime Minister Stephen Harper’s successful trade mission to China, where several agreements were reached that will deepen the trade and investment ties between Canada and China, the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, and Canadian officials continue to indicate Canada’s interest in joining the negotiations for the Trans-Pacific Partnership (TPP).”  

“Since Prime Minister Harper announced Canada’s formal interest in joining the TPP negotiations at the meeting of the Asia-Pacific Economic Cooperation (APEC) forum in November 2011, Minister Fast has held meetings with his counterparts from all nine TPP countries.” 

“In less than six years, Canada has concluded new free trade agreements with nine countries: Colombia, Jordan, Panama, Peru, the European Free Trade Association member states of Iceland, Liechtenstein, Norway and Switzerland, and, most recently, with Honduras. Canada has also launched trade negotiations with India, which is one of the largest markets in the world.”   

According to <Canada–European Union relations> of Wikipedia that modified on 9 June 2013: Since as early as June 2007, the Government of Canada have been pressuring the EU and its member countries to negotiate a Canada-EU free trade agreement. In June 2009, EU and Canada released a joint statement regarding the start of negotiations for a Comprehensive Economic and Trade Agreement (CETA). 

Based on the information that I collected from public media in recent years, the government of Canada has been ongoing and finished free trade negotiations with the transcontinental nations of European Union 27 member countries, Trans-Pacific Partnership (TPP) 12 member countries and India, Colombia, Jordan, Panama, Honduras, Liechtenstein, Norway, Switzerland, about 47 nations in total.  

If all the negotiations are successful, Canada will establish a global free trade market that covers most of the developed and emerging markets in about 75% world GDP. The GDP data was from CIA World Fact book in 2011 and World Economic Outlook in 2012. Since the data of some countries was estimated, so the above results were not accurate, too.

According to above information, we may calculate the achievements of the Government of Canada for free trade in less than seven years as following: 

Populations & GDPs of European Union under negotiations

Populations & GDPs of TPP under negotiations

Populations & GDPs of some countries under negotiations and finished

Populations and GDPs of World

The volume of free trade market of Canada under negotiations and finished    

Population: http://en.wikipedia.org/wiki/Demographics_of_the_European_Union

                http://en.wikipedia.org/wiki/List_of_countries_by_population

GDP:         http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

From above calculations, we may find two interesting results: the firstly is that 38% of the world people made 76% of world wealth, and the secondly is that in the last seven years the governors of Canada were like smart and cunning foxes eagerly wandering in the rich countries or region to exploring new market.  

Canada is seizing the advantage of ASEAN  

In the official website of Foreign Affairs and International Trade Canada that Date Modified in 2012-12-12, there is an article <Seizing Global Advantage> introduces the prospective of the market of the Association of Southeast Asian Nations with a Global Commerce Strategy Priority Market Reports PDF (321 KB)  

“The Association of Southeast Asian Nations (ASEAN) —Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam—makes up one of the world’s fastest growing economic regions.”  

“In December 2008, ASEAN’s Charter came into force, granting ASEAN status as an international legal entity. With an estimated combined gross domestic product (GDP) of $2.1 trillion and a combined population of about 609 million people, ASEAN is a regional economic force that is quickly becoming the free trade hub of Asia. It has concluded free trade agreements with China, India, Japan, Korea, and Australia/New Zealand, has completed a Trade and Investment Framework Arrangement with the United States, and is in the process of pursuing several other trade and investment agreements. The ASEAN-China FTA, which came into force in 2010, represents one of the largest free-trade zones in the world, with an estimated 2.0 billion consumers. ASEAN is also pursuing further internal integration with the establishment an Economic Community (target date 2015), which would harmonize trade laws and permit the free movement of goods, services, labour, and capital to create a single market and production base.” 

The article also gave ASEAN Market Access:  

Canada has a number of bilateral trade and investment policy instruments in place that are helping to facilitate and support Canadian commercial engagement in the region:

1996 Canada-Malaysia Air Transport Agreement

1996 Canada-Philippines Foreign Investment Promotion and Protection Agreement (FIPA)

1997 Canada-Philippines Air Transport Agreement

1998 Canada-Thailand FIPA

2000 Canada-Thailand Air Transport Agreement

2007 Canada-Singapore Air Transport Agreement

2011 Canada-Vietnam Air Transport Agreement 

In progress of the ASEAN Market Access: 

Canada-Vietnam FIPA

Canada-Indonesia FIPA

Exploratory discussions for a Canada-Thailand FTA 

Thanks Mr. Stephen Harper and his chief of staff have been doing right things.  

Now we can assert that, after the success of all free trade negotiations, Canada will become a hub or center in the largest free-trade-market chain world widely across the America, EU, Asia and Oceania. It will greatly promote the economic development of all countries on the chain. And Canada will become the world's economic hot spot. It is a very attractive prospect.  

U.S. - EU Transatlantic Trade and Investment Partnership  

Feb. 20, 2013, report <EU-US Free Trade Agreement: End of the Asian Century? > said: “U.S. President Barack Obama declared his key goals for trade policy in his second term as leader of the world’s biggest economy. “To boost American exports, support American jobs, and level the playing field in the growing markets of Asia, we intend to complete negotiations on a Trans-Pacific Partnership (TPP),” Obama also said: “And tonight, I am announcing that we will launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union – because trade that is free and fair across the Atlantic supports millions of good-paying American jobs.” 

European Union is expanding in ASEAN  

The report of <Association of South East Asian Nations (ASEAN)> from European Commission in 06 Mar 2013 said:

“The final negotiations for a Free Trade Agreement between Singapore and the EU were completed in December 2012.”

“The EU is negotiating Free Trade Agreements with Malaysia, Vietnam and Thailand.”

“The EU's door remains open to start negotiations with other partners in the region and hopes one day to complete these agreements with a region-to-regional trade agreement.”

There is a report in Mandarin said that EU has established an official office in China to provide full service for EU enterprises entering the market of China, which cost 5 Millions yearly.

Important notes:

We must seriously consider the bad effect that is under the name of free trade and justice: 

1. Forcing member countries to allow free flow of huge amount international hot money to legally plunder on real economy. The manmade tragedy of 1997 Asian financial crisis may be easily repeated. Its bad effect would be not inferior to that of the weapons of mass destruction.

2. Forcing member countries to remove subsidies of government  for some industries that are vital for human survival but running in difficulty, such as, agriculture. It is other bad effect that would be not inferior to that of the weapons of mass destruction. 

                   ---  Frank  in Waterloo, Ontario, Canada,  July 30 2013