Friday, July 15, 2005

Freer trade at a cost

It came out today that Canada is seeking a free trade agreement with South Korea.

While I'm all for securing access to new markets and promoting trade generally, the devil is always in the details when it comes to free trade agreements. As it is, trade minister Jim Peterson is warning that it'll take a couple of years to actually reach an agreement - which leaves a two-year window in which both countries can carve out exceptions (presumably lobbied for by local corporations) which run directly contrary to the purpose of a free trade deal.

As an example of how ridiculously byzantine current trade agreements actually are, here's the actual list of items which Mexico exempted from the NAFTA clause on import restrictions:

8407.34.99 Gasoline engines of more than 1,000 cm3, except for motorcycles.

8413.11.01 Distributors fitted with a measuring device even if it includes a totalizing mechanism.

8413.40.01 Trailer type, from 36 up to 60 m3/hr capacity; without hydraulic elevator for the discharge hose.

8426.12.01 Mobile portals on tires and straddle carriers.

8426.19.01 Other (overhead travelling cranes, bridge cranes and straddle carriers).

8426.30.01 Portal cranes.

8426.41.01 Cranes with structural iron jib (lattice) with mechanical working, self-propelled, with unit weight up to 55 tons.

8426.41.02 Cranes with hydraulically actuated rigid jib, selfpropelled with maximum capacity above 9.9 tons and not exceeding 30 tons.

8426.41.99 Other (machinery and apparatus, self propelled, on tires.)

8426.49.01 Cranes with structural iron jib (lattice) with mechanical working, with unit weight up to 55 tons.

8426.49.02 Cranes with hydraulically actuated rigid jib, selfpropelled, with load capacity above 9.9 tons and not exceeding 30 tons.

8426.91.01 Cranes, other than those provided for in items 8426.91.02, 8426.91.03 and 8426.91.04.

8426.91.02 Cranes with hydraulic working, with articulated or rigid booms, with capacity up to 9.9 tons at 1 meter radius.

8426.91.03 Isolated elevating cranes, basket type, with carrying capacity equal to or less than 1 ton and up to 15 meters lift.

8426.91.99 Other (machinery and apparatus; designed for mounting on road vehicles).

8426.99.01 Cranes, other than those provided for in items 8426.91.02

8426.99.02 Swivel cranes.

8426.99.99 Other (cranes and air cables ("blondines"); overhead
travelling cranes, handling or unloading frames, bridge cranes, straddle carriers and straddle cranes).

8427.10.01 With load capacity up to 3,500 kilograms, measured at 620
millimeters from the frontal surface of the forks, without battery or loader.

8427.20.01 With explosion or internal combustion engine, with carrying capacity up to 7,000 kilograms, measured at 620 millimeters from the frontal surface of the forks.

8428.40.99 Other (escalators and moving walkways).

8428.90.99 Other (machinery and apparatus for lifting, loading, unloading or handling).

8429.11.01 Caterpillar type.

8429.19.01 Other (bulldozers and angledozers).

8429.20.01 Graders.

8429.30.01 Scrapers.

8429.40.01 Tamping machines.

8429.51.02 Frontend loader with hydraulic working, wheeltype, with
capacity equal or less than 335 HP.

8429.51.03 Mechanical shovels, other than those provided for in item

8429.51.01.

8429.51.99 Other (mechanical shovels, excavators, loaders and frontend shovel loaders).

8429.52.02 Draglines or excavators, other than those provided for in item 8429.52.01.

8429.52.99 Other (machinery with a 360 revolving superstructure).

8429.59.01 Trenchers.

8429.59.02 Draglines, with dragging load capacity up to 4,000 kilograms

8429.59.03 Draglines or excavators, other than those provided for in item 8429.59.04.

8429.59.99 Other (selfpropelled bulldozers, angledozers, graders, scrapers, mechanical shovels, excavators, loaders, shovel loaders, tamping machines and road rollers).

8430.31.01 Rotation and/or percussion perforators.

8430.31.99 Other (selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries).

8430.39.01 Boring shields.

8430.39.99 Other (not selfpropelled cutters, pullers or wrenchers and machines to open tunnels or galleries).

8430.41.01 Boring or sinking machinery, other than those provided for in item 8430.41.02.

8430.41.99 Other (selfpropelled probing or boring machinery).

8430.49.99 Other (not selfpropelled probing or boring machinery).

8430.50.01 Excavators, frontal carriers with hydraulic mechanism, with capacity equal to or less than 335 h.p.

8430.50.02 Scrapers.

8430.50.99 Other (selfpropelled machinery and apparatus).

8430.61.01 Graders (pushers).

8430.61.02 Tamping or compacting rollers.

8430.61.99 Other (machinery and apparatus, not selfpropelled).

8430.62.01 Scarification machine (ripping machine).

8430.69.01 Scrapers, not selfpropelled.

8430.69.02 Trencher machine, other than those provided for in item
8430.69.03.

8430.69.99 Other (trenchers, other than those provided for in items
8430.69.01, 8430.69.02 and 8430.69.03).

8452.10.01 Sewing machines of the household type.

8452.21.04 Industrial machines, other than those provided for in items 8452.21.02, 8452.21.03 and 8452.21.05.

8452.21.99 Other (automatic sewing machines).

8452.29.05 Machines or heads for industrial use, with straight seams, straight needle and a rotating and oscillating thread linking device, double backstitching, flat bed and transportation only.

8452.29.06 Industrial machines, other than those provided for in items 8452.29.01, 8452.29.03 and 8452.29.05.

8452.29.99 Other (non-automatic sewing machines).

8452.90.99 Other (parts of sewing machines).

8471.10.01 Analogue or hybrid automatic data processing machines.

8471.20.01 Digital or numerical automatic data processing machines,
containing in the same housing at least a central processing unit and an input and output unit.

8471.91.01 Numerical or digital processing units, even if presented with the rest of the system, including one or two of the following types of units contained in the same housing: storage units, input units, output unit.

8471.92.99 Other (input or output units whether or not entered with the rest of a system and whether or not containing storage units in the same housing).

8471.93.01 Storage units, including the rest of the system.

8471.99.01 Other (automatic data processing machines and units thereof).

8474.20.01 Crushing and grinding with two or more cylinders.

8474.20.02 Crushing jawbone and grinding millstone.

8474.20.03 Blade crushing machines.

8474.20.04 Crushing machines of balls or bars.

8474.20.05 Drawer cone crushing, with diameter no more than 1200
millimeters.

8474.20.06 Grinding hammer percussion.

8474.20.99 Other (machines and apparatus to break, crush or grind
or pulverize dirt, stones and other solid mineral materials).

8474.39.99 Other (mixing machines).

8474.80.99 Other (machines and apparatus to classify, sieve, separate, break, crush, grind, mix, or knead dirt, stones and other mineral materials).

8475.10.01 Machines for assembling lamps.

8477.10.01 Injectionmolding machines for thermoplastic materials,
up to 5 kg capacity for one molding model.

8701.30.01 Caterpillar tractors with an engine power at the flywheel
equal to or above 105 h.p., but less than 380 h.p. measured at 1,900 rpm, including pushing blade.

8701.90.02 Railroad tractors, on tires with mechanical mechanism
for pavement.

8711.10.01 Motorcycles fitted with an auxiliary motor with reciprocating piston engine not exceeding 50 cm3.

8711.20.01 Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 50 cm3 but not over 250 cm3.

8711.30.01 Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 250 cm3 but not over 500 cm3.

8711.40.01 Motorcycles fitted with an auxiliary motor with reciprocating piston engine over 500 cm3 but less than 550 cm3.

8711.90.99 Other (motorcycles, cycles fitted with an auxiliary motor
and sidecars without a reciprocating piston engine, and that are not
sidecars for motorcycles and velocipedes of any kind presented
separately).

8712.00.02 Bicycles, other than of the type for racing.

8712.00.99 Other (cycles, not motorized, except bicycles, and
tricycles for the transport of merchandise).

8716.10.01 Trailers and semitrailers for housing and camping,
of the caravan type.

8716.31.02 Steeltank type tankers, including cryogenic or hoppers.

8716.31.99 Other (tankers except of the steeltank type, and of the
thermal type for the transportation of milk).

8716.39.01 Trailers or semitrailers of the platform type, with or without stakes, including those accepted for the transport of boxes or metal baskets for cans and bottles or container carriers, or low beds, except those with hydraulic or pneumatic suspension and collapsible gooseneck.

8716.39.02 Trailers or semitrailers for the transport of vehicles.

8716.39.04 Trailers of the modularplatform type with directional axis, including transporter bridge section, hydraulic couplings or gooseneck or motor for hydraulic conditioning of the equipment.

8716.39.05 Semitrailers of the lowbed type, with pneumatic or hydraulic suspension and collapsible gooseneck.

8716.39.06 Trailers and semitrailers of the closedbox type, including refrigerated.

8716.39.07 Trailers and semitrailers of the steeltank type, including cryogenic and hoppers.

8716.39.99 Other (trailers and semitrailers for the transportation of goods, other than those provided for in items 8716.39.01, 8716.39.02, 8716.39.04, 8716.39.05, 8716.39.06 and 8716.39.07, and that are not vehicles for the transport of goods, with solid rubber wheels, nor doubledecker trailers or semitrailers of the type recognized as used exclusively for hauling cattle.

8716.40.01 Other trailers and semitrailers not used for transporting goods.

8716.80.99 Other (non-automotive vehicles except trailers or semitrailers, wheel barrows and handcarts, or wheel barrows of hydraulic operation).

Recognizing that there are prisoner's dilemma-type issues at play, wouldn't we still be better off generally trying to remove trade barriers to Canada now and agreeing with other states to do the same, rather than spending years haggling over whether separate clauses are necessary for "scrapers" and "scrapers, not self-propelled"?

Just asking.

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