Skip to main content
SpringerLink
Log in

What have the FTA and the NAFTA done to the Canadian labor market?

  • Symposium: Labor in a Changing World
  • Published:
Forum for Social Economics

Abstract

A central concern with respect to globalization is its effects on institutions. Institutions are thought to provide protections against the casual damage inflicted by market processes and, in various ways, to contribute toward aggregate economic efficiency. The effects of the Canada-United States Free Trade Agreement and the North American Free Trade Agreement on the Canadian labor market and its institutions provide a useful case study of the effects of globalization because Canadian trade is so heavily concentrated with the United States. In this paper I show that, while the agreements imposed considerable costs on employees in some manufacturing industries, overall, Canadian institutions have not been substantially changed by the agreements. Where those institutions have changed, other factors have been much more important.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Anonymous. (Summer 1999). “Unionization in Canada: A retrospective.”Perspectives in Labour and Income. Statistics Canada, 75-001-XPE 4–35.

  • Anonymous. (Autumn 2000). “Unionization in Canada: An update.”.Perspectives in Labour and Income. Statistics Canada, 75-001-XPE 39–59.

  • Aitken, Norma D. (1973). “The effect of EEC and EFTA on European trade: A Temporal Cross-Section Analysis.”American Economic Review, 63: 881–892.

    Google Scholar 

  • Akyeampong, Ernest B. (Winter 1997). “A statistical portrait of the trade union movement.”Perspectives on Labour and Income. Statistics Canada 75-001-XPE, 45–54.

  • Arthurs, H.W. (1999). “Constitutionalizing neo-conservatism: TINA × 2.” Thomas J. Courchene, ed.Room to Manoeuvre? Globalization and Policy Convergence. Montreal and Kingston: McGill-Queen's University Press.

    Google Scholar 

  • Bayoumi, Tamin, and Barry Eichengreen. (1995). “A provincial view of capital mobility.”IMF Staff Papers, 44: 534–556.

    Google Scholar 

  • Bérubé, Gérard. (2000). “Mosel Vitelic pourrait tomber au combat des fusions.”Le Devior Mardi 12 Décembre: 2.

  • Bikker, Jacob A. (1987). “An international trade flow model with substitution: An extension of the gravity model.”Kyklos, 40: 315–337.

    Google Scholar 

  • Britton. Cited in note 16 of Jackson Jackson, Andrew. (1999). “The free trade agreement—a decade later.”Studies in Political Economy, 58: 141–160.

    Google Scholar 

  • Calmfors, Lars, and John Driffill. (1988). “Bargaining structure, corporatism and macroeconomic performance.”Economic Policy, 2: 14–47.

    Google Scholar 

  • Campbell, Bruce. (1993). “Restructuring the economy: Canada into the free trade era.” Ricardo Grinspun and Maxwell A. Cameron, eds.The Political Economy of North American Free Trade. Montreal and Kingston: McGill-Queen's University Press.

    Google Scholar 

  • Canadian Taxpayers Federation. (2000a). Wasted Effort and Dollars?A 13-Year Quantitative Analysis of Western Economic Diversification. Ottawa: Canadian Taxpayers Federation.

  • -Canadian Taxpayers Federation. (2000b).ACOA: The Lost Decade: A Ten-Year Quantitative Analysis. Ottawa: Canadian Taxpayers Federation.

  • Clement, Wallace, and Daniel Drache. (1985).The New Practical Guide to Canadian Political Economy. Toronto: J. Lorimer.

    Google Scholar 

  • Corporate Watch. (1998). “NAFTA at five: A report card.”Corporate Watch: The Watchdog on the Web. www.corpwatch.org/trac/feature/humanrts/globalization/nafta.html.

  • Drache, Daniel. (1993). “Assessing the benefits of free trade.” Ricardo Grinspun and Maxwell A. Cameron, eds.The Political Economy of North American Free Trade. Montreal and Kingston: McGill-Queen's University Press, 73–87.

    Google Scholar 

  • -Drache, Daniel, and Meric S. Gertler, eds. (1991).The New Era of Global Competition: State Policy and Market Power. Montreal and Kingston: McGill-Queen's University Press.

    Google Scholar 

  • Dungan, Peter, and Steve Murphy. (1999).The Changing Industry and Skill of Canada's International Trade. Ottawa: Industry Canada Research Publications.

    Google Scholar 

  • Ebden, Theresa. (November 3, 1999). “Union activists protest EI moves.”St. John's Telegram, 4.

  • Eden, Lorraine, and Maureen Appel Molot. (1993).The NAFTA's Automotive Provisions: The Next Stage of Managed Trade. Toronto: C.D. Howe Institute.

    Google Scholar 

  • Evans, Peter. (1997). “The eclipse of the state? Reflections on stateness in an era of globalization.”World Politics, 50: 62–87.

    Google Scholar 

  • Fife, Robert. (March 23, 1999). “EI surplus to balloon to $26-billion next year: “Highway robbery.”National Post, A1.

  • Grinspun, Ricardo. (1993). “The economics of free trade in Canada.” Ricardo Grinspun and Maxwell A. Cameron, eds.The Political Economy of North American Free Trade. Montreal and Kingston: McGill-Queen's University Press, 105–124.

    Google Scholar 

  • Head, Keith, and John Ries. (1999).Can Small-Country Manufacturing Survive Trade Liberalization? Evidence from the Canada-U.S. Free Trade Agreement. Ottawa: Industry Canada Research Publications.

    Google Scholar 

  • Hejazi, Walid, and A. Edward Safarian. (1999).Modelling Links between Canadian Trade and Foreign Direct Investment. Ottawa: Industry Canada Research Publications.

    Google Scholar 

  • Hibbs, Douglas A. (1978). “On the political economy of long-run trends in strike activity.”British Journal of Political Science 8: 153–175.

    Article  Google Scholar 

  • Hirst, Paul, and Grahame Thompson. (1996).Globalization in Question: The International Economy and the Possibilities for Governance. Cambridge: Polity Press.

    Google Scholar 

  • Hollingsworth, J. Rogers. (1997). “Continuities and changes in social systems of production: The cases of Japan, Germany, and the United States.” J. Rogers Hollingsworth and Robert Boyer, eds.Contemporary Capitalism: the Embeddedness of Institutions. Cambridge: Cambridge University Press, 265–310.

    Google Scholar 

  • -Hollingsworth, J. Rogers, and Robert Boyer, eds.Contemporary Capitalism: The Imbeddedness of Institutions. Cambridge: Cambridge University Press.

  • Jackson, Andrew. (1999). “The free trade agreement—a decade later.”Studies in Political Economy, 58: 141–160.

    Google Scholar 

  • Laxer, Gordon. (1989).Open for Business: The Roots of Foreign Ownership in Canada Toronto: Oxford University Press.

    Google Scholar 

  • Levitt, Kari. (1970).Silent Surrender: The Multinational Corporation in Canada. Toronto: McMillan.

    Google Scholar 

  • Lichfield, Randall. (October 1993). “Wide angle: From $35 billion to zero in a few simple strokes.”Canadian Business, 66: 13.

    Google Scholar 

  • Lipsey, Richard G., Daniel Schwanen, and Ronald J. Wonnacott. (1994).The NAFTA: What's in, What's out, What's next. Toronto: C.D. Howe Institute.

    Google Scholar 

  • -Lipsey, Richard G., and Robert C. York. (1988).Evaluating the Free Trade Deal: A Guided Tour through the Canada-U.S. Agreement. Toronto: C.D. Howe Institute.

    Google Scholar 

  • Marchak, Patricia M. (1979). In Whose Interests: An Essay on Multinational Corporations in a Canadian Context. Toronto: McClelland and Stewart.

    Google Scholar 

  • -Marchak, Patricia M.. (1985). “Canadian political economy.”Canadian Review of Sociology and Anthropology, 22: 673–709.

    Article  Google Scholar 

  • Martinello, Felice. (2000). “Mr. Harris, Mr. Rae, and union activity in Ontario.”Canadian Public Policy/Analyse de politiques, 26: 17–33.

    Article  Google Scholar 

  • McCallum, John. (June 1999). “Two cheers for the FTA.”Policy Options/Options Politiques, 20:6–11.

    Google Scholar 

  • Murphy, Kevin M., W. Craig Riddell, and Paul Romer. (1998). “Wages, skills and technology in the United States and Canada.” E. Helpman, ed.General Purpose Technologies and Economic Growth. Cambridge: MIT Press, 283–309.

    Google Scholar 

  • Olewiler, Nancy. (1999). “National tax policy for an international economy: Divergence in a converging world?” Thomas J. Courchene, ed.Room to Manoeuvre? Globalization and Policy Convergence. Montreal and Kingston: McGill-Queen's University Press.

    Google Scholar 

  • Osterman, Paul. (1988).Employment Futures: Reorganization, Dislocation, and Public Policy. New York: Oxford University Press.

    Google Scholar 

  • Prince, Michael J. (1988). “New mandate, new money, new politics: Federal budgeting in the post-deficit era.” Leslie A. Pal, ed.How Ottawa Spends 1998–99: Balancing Act: The Post-Deficit Mandate. Toronto: Oxford University Press, 31–55.

    Google Scholar 

  • Sargent, Timothy C. (1996).An Index of Unemployment Insurance Disincentives. Ottawa: Department of Finance.

    Google Scholar 

  • -Sargent, Timothy C., and Munir Sheikh. (1996).The Natural Rate of Unemployment: Theory, Evidence and Policy Implications. Ottawa: Department of Finance.

    Google Scholar 

  • Smith, Michael R. (1999) “Insecurity in the labour market: The case of Canada since the second world war.”Canadian Journal of Sociology 24: 193–224.

    Google Scholar 

  • -Smith, Michael R.. (2001). “La mondialisation: a-t-elle un effet important sur le marché du travail dans les pays riches?” Forthcoming in Daniel Mercure (ed.),Une société monde? Québec: Presses de l'Université Laval.

    Google Scholar 

  • Snoddon, Tracy R. (1998). “The impact of the CHST on interprovincial redistribution in Canada.”Canada Public Policy 24: 49–70.

    Article  Google Scholar 

  • Standing, Guy. (1999).Global Labour Flexibility: Seeking Distributive Justice. London: Macmillan.

    Google Scholar 

  • Strick, John C. (1999).The Public Sector in Canada: Programs, Finance, and Policy. Toronto: Thompson Educational Publishing.

    Google Scholar 

  • Trefler, Daniel. (1999).The Long and the Short of the Canada-U.S. Free Trade Agreement. Ottawa: Industry Canada Research Publications.

    Google Scholar 

  • Trudeau, Gilles, and Guylaine Vallée. (1994). “Economic integration and labour law policy in Canada.” Maria Lorena Cook and Harry C. Katz, eds.Regional Integration and Industrial Relations in North America. Ithaca, New York: New York School of Industrial and Labor Relations, Cornell University, 66–81.

    Google Scholar 

  • Vastel, Michel. (15 Décembre, 2000). “Mosel Vitelec: Jeux de coulisse.”L'actualité 25: 30–41.

    Google Scholar 

  • Watson, William. (1998).Globalization and the Meaning of Canadian Life. Toronto: University of Toronto Press.

    Google Scholar 

  • Wolfson, Michael C., and Brain B. Murphy. (April 1998). “New views on inequality trends in Canada and the United States.”Monthly Labor Review, 3–23.

Download references

Author information

Authors and Affiliations

  1. McGill University, Montreal, Canada

    Michael R. Smith

Authors
  1. Michael R. Smith
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Smith, M.R. What have the FTA and the NAFTA done to the Canadian labor market?. FSSE 30, 25–50 (2001). https://doi.org/10.1007/BF02828501

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF02828501

Keywords

Search

Navigation