more warrlece By KEN SMITH CP Economics Writer Two items, One: A couple of recent studies have concluded that Canada would be better off moving toward international free trade or, at least, toward a limited version of that goal. Two: The federal government has decided to extend on lamperted shane, or ears from Jepan, at'tp eet of the Canadian consumer. One of the latest studies on free trade — a subject that has been kicked around in Canada since before Confed- eration — coneludes that it would yield substantial benefits * for the Canadian economy, Prepared for the Ontario Economie Council by Richard quotas limiting the inporting of to protect industries. What does it all mean? Although the federal govern ment was not involved in the two studies which looked favorably on freer trade, it has been actively engaged in negotiations with the United States for bilateral concessions in selected areas. Why, then, would it impose continued quotas on footwear, especially since these products are important exports from countries such as Brazil and Poland? Both these countries desperately need to increase their exports to overcome their huge international debts, and the sale of even a pair of shoes helps. But Ottawa, which officially supports the need to help these so-called developing economies, says in effect: Thanks, but no.thanks. You ship those shoes to some other country to earn the foreign currency you need. We've got to look after our own. - CONSUMERS PAY Meanwhile, Canadian consumers pay higher prices for their shoes. If supporting freer trade with developing countries, and then slapping quotas on their exports, sounds hypocritical — it is. Unfortunately, it’s also universal. Almost every country in the trading world today officially favors freer international exchange. This has been shown by moves toward easier regulations under the General Agreement on Tariffs and Trade. But the international hypocrisy comes in the imaginative way countries have come up with trade barriers which aren't covered by GATT — such as imposing quotas Harris, professor at Queen's University in King- ston, Ont., and David Cox, an economics professor at the University of Western Ontario in London, Ont., it concludes that easing international trade restrictions would boost the manufacturing industry generally and so help most Can. adians. SOME PROBLEMS Although there would be serious problems in such industries as leather and textiles, there would be a substantial rise in average real income. “Under free trade, Canada would have a vigorous manufacturing sector with a significant export profile. The major effect of free trade would be higher real incomes for Canadian labor and lower prices for many imported and domestically produced goods.” A brief from the Canadian Chamber of Commerce to the federal government also supports a freer-trade environ- ment. The chamber said Canada has far more (o lose from putting up harriers to free trade than it can gain from hiding behind- artificial obstacles. Canada would have to ensure that its industries could compete internationally, and that other countries didn't hide behind their own artificial barriers. Some manufacturers, the chamber said, will need aid while workers are helped to relocate but “under no cir- cumstances should assistance be given in perpetuity to sus- tain activities for which there is only political rationale.” In the case of Canada's footwear industry, it’s true that Ottawa's extension of the quotas is for only 16 months. And during that period there's to be a study to see if the quotas are justified. Businesses at i t VANCOUVER (CP) — gry business tenants at Van- couver International Airport say sales are down but they can't get any rent relief from Transport Canada even though the airport made a profit of $24 million last year on revenues of just under $60 million. “The airport may be reces- sion-proof but we are not,” says Carol Fisher, co-owner of Jet Set Sam Inc., which packages smoked salmon and other specialities. “We are hurting. We have suffered tremendously be- cause of the recession and yet they will give us no relief. Their answer is ‘Pay up or get out.’ ” Fisher said business at the airport has dropped 20 per cent in the last year because of declining traffic. Jet Set Sam pays Trans- port Canada $125,000 a year for 300 square feet at the air- port. Comparable space downtown would cost about $16,000. The business also pays municipal taxes of $15 a square foot. “People think our prices (for fish) are high at the air- port,” said Fisher. ‘We are maybe a dollar a pound over Woodward's. If people only knew what is happening to us they would realize that twice the price wouldn't be enough.” Like other concessions, Jet Set Sam pays a minimum hurting guaranteed rent at the air- port plus a percentage of reached the point where we're paying only the guar- antee, which means we were making no money at all.” Lorne Howell, Transport Canada deputy regional ad- ministrator and a former air- port manager, confirmed that some concessionaires have gone bankrupt. “There have been requests for relief from rents but none was given,” he said. “It's a national issue. If you give rent relief on contracts gined with concessionaires there are a lot of legal ramifications involved.” There are about 700 leases and contracts at the airport, covering everything from the major airlines to bookstores and car rental outlets. Tom Coulson, general man- ager of Cara Operations Ltd. which has all the food and beverage concessions and most of the retail stores, said the company is locked into a 20-year agreement that still has four years to run. “Over the last year our company had discussions with Transport Canada and some of our operations, that are suffering a loss have asked for relief from the minimum rents that we are locked into, but it has not been accepted. Seventh-day Adventist wins WINNIPEG (CP) — A judge has ruled that Inco Ltd. discriminated against a man who was fired by the mining company because his religion prevented him from working certain shifts. In his decision Mr. Justice Guy Kroft of Manitoba Court of Queen's Bench said Wayne Osborne, an underground miner and Seventh-day Ad ventist, should be compen- sated or reinstated. The decision may have broad implications because even though Inco said it would suffer decreased safe ty, efficiency and increased costs by accommodating Os- borne, the judge found those factors were outweighed by the discrimination principle. Roger Hansell, Inco’s law- yer, said he was astounded by the decision which he said ignores business realities and creates a dangerous prece- dent. But that particular question has been studied into the ground. And surely the basic question is: how far do you study a basic principle? Especially when you're supposed to support it. Ottawa introduces mortgage bill OTTAWA (CP) — Legis- lation to put the govern- ment's proposed mortgage rate protection program into effect was introduced in the Commons by Housing Min- ister Romeo LeBlanc. The program, announced in the Feb. 15 budget speech, is designed to cushion home- owners against major jumps in monthly housing payments if mortgage rates jump sharply at renewal time. People renewing mortgag- es or those buying homes on or after March 1 of this year will be eligible for the pro- tection once the bill becomes - law. The cost of the program will be a one-time fee of 1% per cent of the value of the mortgage to a maximum of $1,050. The program is designed to take effect when mortgage rates at renewal time are up more than two percentage points. The government would pay three-quarters of any additional costs for the next 10 points. For example, a person who bought a house on March 1 and took out a five-year mortgage at 12 per cent would be protected through the end of a second five-year term. 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