The document discusses protectionism and trade issues. It begins with defining protectionism as government policies that restrict trade to protect local businesses from foreign competition, using tariffs and quotas. It then notes issues with protectionism like higher consumer prices. The document outlines that many countries face pressure to create jobs and look inward, threatening global economic integration. It provides statistics on top exporting countries and trade deficits between the US, China, and Canada. The document ends with summarizing blogs on protectionism causes and Canada's trade relationship with the US.

1. IS THE WORLD HEADING TO
MORE PROTECTIONISM?
PAUL YOUNG
APRIL 20, 2017

2. PAUL YOUNG - BIO
• CPA, CGA
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• Former Lecturer – CGA Ontario – Public
Finance, Advance Accounting, Finance and
Advance Information Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. OVERVIEW
• This presentation looks protectionism policies when it comes to merchandise trade.

4. AGENDA
• What is protectionism
• Issues with protectionism
• Top exporting countries
• China and USA Trade
• Canada and Trade Deficits
• Blog – Protectionism
• Blog – Canada and Trade

5. WHAT IS PROTECTIONISM
• Protectionism refers to government actions and policies that
restrict or restrain international trade, often done with the intent
of protecting local businesses and jobs from foreign competition.
Typical methods of protectionism are tariffs and quotas on imports
and subsidies or tax cuts granted to local businesses. The primary
objective of protectionism is to make local businesses or industries
more competitive by increasing the price or restricting the
quantity of imports entering the country.
• Source - http://www.investopedia.com/terms/p/protectionism.asp

6. ISSUES WITH PROTECTIONISM
• Many countries are receiving pressure at home to create jobs. The problem is that
government cannot create jobs directly as that is up to private sector.
Government has a role and that is to do with policies, like taxation or regulations
or trade/investment agreements with various countries around the world.
• Some countries artificially keep their currency low as part of trying secure foreign
direct investment. Many countries feel these countries that are using labor and/or
currency rates to keep their costs down are not acting fairly as such will look at
counter measure through the form of tariffs/duties.
• Some countries artificially control investment by putting restriction on ownership.
Foreign ownership restriction along with business subsidies can lead to companies
within those countries having an unfair advantage over companies in other
countries.
• Consumers can pay higher prices due to import taxes

7. GLOBAL PROTECTIONISM
Source - http://www.cnbc.com/2017/04/18/imf-raises-global-growth-forecasts-warns-against-protectionism.html
"With persistent structural problems—such as low productivity growth and high
income inequality—pressures for inward-looking policies are increasing in advanced
economies. These threaten global economic integration and the cooperative global
economic order that has served the world economy, especially emerging market and
developing economies, well," the International Monetary Fund said in its latest World
Economic Report.
IMF – CNBC – April 18, 2017

8. PROTECTIONISM – GLOBAL CONSUMER
• Source - http://www.jsonline.com/story/opinion/contributors/2017/04/13/roth-donald-trumps-
protectionist-trade-inclinations-hurt-wisconsin/100413028/
In contrast, hiking taxes on imports — as Trump has signaled — is regressive and
serves to hurt consumers, particularly the working class, by forcing American
consumers to pay higher prices. Whether it is a tariff or the BAT tax, consumers
ought to know that the end result will be higher prices on cars, clothes and
Coronas.
Milwaukee Journal-Sentinel – April 13, 2017

9. TOP EXPORTING COUNTRIES
Source - http://www.worldatlas.com/articles/exports-by-country-20-largest-
exporting-countries.html
FORECASTED GDP GROWTH
http://www.gbm.scotiabank.com/English/bns_econ/forecast.p
df

10. USA VS CHINA
TRADE 2016
Exports $116B
Imports $463B
Deficit ($347)B
New Trade 2017
• $43B Alaska LNG
• $37B Aerospace
• $170 Other

11. CANADA TRADE DEFICIT
Source - Stats Canada
Issues:
• More taxes (Carbon Taxes)
• Tax hikes (Payroll Taxes, Income Taxes, Small
Business Taxes
• High hydro costs
• Pipelines approved, but not built
• Lack of capacity to expand exports (Ports,
pipelines, roads, bridges)
• No new trade deals (Emerging Markets)
• Pushing social agenda (Agenda 2030)

12. BLOG - PROTECTIONISM
• What is Protectionism?
• Protectionism refers to government actions and policies that restrict or restrain international trade, often done with the intent of
protecting local businesses and jobs from foreign competition. Typical methods of protectionism are tariffs and quotas on imports
and subsidies or tax cuts granted to local businesses. The primary objective of protectionism is to make local businesses or industries
more competitive by increasing the price or restricting the quantity of imports entering the country.
• Source - http://www.investopedia.com/terms/p/protectionism.asp
•
• What causes protectionism?
• Many countries are receiving pressure at home to create jobs. The problem is that government cannot create jobs directly as that is up to
private sector. Government has a role and that is to do with policies, like taxation or regulations or trade/investment agreements with
various countries around the world.
• Some countries artificially keep their currency low as part of trying secure foreign direct investment. Many countries feel these countries
that are using labor and/or currency rates to keep their costs down are not acting fairly as such will look at counter measure through the
form of tariffs/duties.
• Some countries artificially control investment by putting restriction on ownership. Foreign ownership restriction along with business
subsidies can lead to companies within those countries having an unfair advantage over companies in other countries.
•
• Why is the world heading to more protectionism?
• Slow growth globally which is impacting both exports and the domestic markets for various countries.
• New government leadership like Trump in the United States ran on platform to create jobs. New government can lead to change in
policies, like reducing taxation or reducing red tape or tariffs/duties on imports.

13. BLOG - TRADE
• http://www.canadianmanufacturing.com/exporting-and-importing/canada-u-s-trade-not-broken-no-need-trump-fix-freeland-says-
181024/?custnum=11196356799&title=&utm_source=CMO&utm_medium=email&utm_campaign=161222B
•
• Key Quote “I think the reality is the trading relationship with Canada is the farthest possible thing from being broken. It is very balanced and
mutually beneficial”
•
• Fact:
• Mexico has leapfrog Canada in terms on trade with the United States - http://www.huffingtonpost.ca/2016/12/07/mexico-us-trade-
canada_n_13487730.html . “According to data from the U.S. Commerce Department, trade in goods between the U.S. and Mexico amounted to
US$245.3 billion this year through October, while U.S.-Canada trade totaled $230.4 billion”
• Canada is imposing carbon taxation and United States is not - http://www.cme-mec.ca/download.php?file=58ju7z2st.pdf – Canada needs to be
competitive in terms of taxation as well as regulations. Business investment by companies will go to various jurisdictions that maximize return on
investment (ROI)
• http://www.huffingtonpost.ca/2016/11/18/alberta-texas_n_13075844.html “Texas is right now in much better fiscal condition than Alberta.”
• Softwood Lumber - http://www.forestbusinessnetwork.com/66288/softwood-goes-deeper-than-just-lumber/ “The fact remains that Canadian
lumber companies continue to enjoy a supply of logs from government sources, while US counterparts that are in areas with a high density of
federally owned timberland continue to die off. This has far-reaching consequences for the US Forest Service and other land managers that no
longer have markets to sell their logs. That brings me to a question, why can’t mills positioned near the Canadian border compete for logs that
are in Canada? Now that the Canadian system is more market-based, shouldn’t logs be free to cross the border like lumber?”
• Canada has dropped out of the top 10 for FDI - https://www.slideshare.net/paulyoungcga/fdi-foreign-direct-investment-the-importance-of-
capital-inflow
• Ontario has fallen in terms of mining investment - http://www.mining.com/canadas-saskatchewan-manitoba-worlds-new-top-mining-
destinations/