With respect, I would argue that both sides are missing the point in focusing on the concept of free trade. The real issues are the nature of the international agreements that have been approved in the name of free trade and the failure of governments to take action when the uneven impact of these flawed agreements has become all too apparent.
The flaws in these so-called free trade agreements have been pinpointed in some recent writings. Nobel laureate in economics, Joseph Stiglitz, recently issued a call for a change in the rules so that we can tame globalization. He makes a convincing case that large segments of the population in advanced countries have not been doing well under the prevailing free trade regime. He notes that the bottom 90% of the population in the United States has endured economic stagnation for a third of a century and that the median income for full time male workers is lower now in real (inflation-adjusted) terms than it was 42 years ago. In light of that sobering reality, why should we be surprised that so many Americans seem willing to overlook the ravings of Donald Trump, given his declaration that he is prepared to tear up NAFTA.
Closer to home, a timely article in in Policy Options magazine posits the view that countries such as the US (and the UK with its unexpected pro-Brexit vote) have experienced much greater inequality than Canada and may have reached a “tipping point” in terms of political stability. We have been spared – so far – at least in part because of our income redistributive policies that have helped to ameliorate the very uneven consequences of our free trade agreements. But the article notes that Canada has lost its “safety valve” in the form of the resource boom in Western Canada and is now likely to face increased inequality in income redistribution.
If Canada is to avoid the increased social tensions evident in other developed economies, it needs to come up with a comprehensive strategy that will more fairly distribute the benefits of economic growth. That is the issue that should be the focus of public debate, not the misplaced issue of free trade.