"We've signed a stunning new trade pact with Canada.  The Canadians don't know what they have signed.  In twenty years, they will be sucked into the U.S. economy."

TORONTO, ON;(06/04/00) --- Canadians must choose between the North American Free Trade Agreement (NAFTA) and Medicare, Canadian Action Party leader, Paul Hellyer, stated. "In spite of the rhetoric we've been hearing lately, Canadians can't have both -- because certain clauses in NAFTA threaten the very existence of our present health-care system. It's time we recognized that the free trade agreement gives the American government and health-care corporations so much power that Medicare simply can't survive under its influence."

Mr. Hellyer said that, after years of relative silence about the connection between NAFTA and Medicare, evidence is mounting that the trade deal is the real reason our health-care system is being dismantled.

"Until now, those who wished to destroy our public, universally-accessible medical system and bring in a private, American-style system have preferred a kind of rear-guard attack to a frontal assault. They have deprived the system of more than $30 billion -- and now claim it doesn't work and needs to be semi- or fully-privatized.

"This was a clever tactic because the anti-Medicare lobby didn't have to use free trade directly --- it could hide behind the deficit. But more and more Canadians realize what is going on," the CAP leader noted.

 Mr. Hellyer pointed out that two studies of the relationship between NAFTA and Medicare reveal that the Chretien government must know that Medicare is doomed under free trade.

 According to former GATT negotiator Mel Clark, American trade law "provides a legal basis for the US to countervail any or all Canadian exports of goods on the grounds that government financial assistance for health care is a countervail able subsidy." (Countervail is a retaliatory trade measure which can be very costly.)

At the same time, writes Mr. Clark, Canada cannot legally protect itself from U.S. countervail on demand.  He warns; "...there are no NAFTA rights Canada can invoke to protect Medicare from American countervail."

As well, Mr. Clark notes that Article 1201 of NAFTA "placed all Canadian health services under the agreement, including the production, distribution, marketing, sale and delivery of a health service,"... and Articles 1102 and 1202 "require Canada and the Provinces to accord US health 'service providers? the same treatment they accord Canadian providers without exception."

"Mr. Clark has put together a very frightening scenario," said Mr. Hellyer. "It appears that the Chretien government knows it either has to dismantle Medicare or face a legitimate threat of countervail from the U.S. -- so that explains its destructive actions over the past few years."

Mr. Hellyer also quoted a recent study done by Vancouver lawyer Steven Shrybman for the Canadian Union of Public Employees. Mr. Shrybman agrees that Canada did not get an exclusion for health care under NAFTA -- only reservations which he describes as qualified and ambiguous.  In his study, Mr. Shrybman points out that the U.S. has claimed that"...notwithstanding these reservations, 'services supplied by a private firm, on a profit or not-for-profit basis? are entirely subject to NAFTA investment and services discipline."

In other words, Premier Ralph Klein's plans to set up private "surgical facilities" could open the door to an influx of U.S. health-care providers to that province and others under the terms of NAFTA.

Mr. Hellyer said anyone looking into the connections between the federal and certain provincial governments and health-care corporations would not be surprised that the way is being cleared for private investment dollars. For example, there are personal and professional connections between health-insurance companies in Canada and the U.S. and those who claim they are ready to defend Medicare.

A recent comment made by former Liberal Health Minister Diane Marleau that the people making the rules for Medicare in Canada "want to please their friends, the powerful business lobby."

"From her vantage point as a health minister, Madame Marleau saw first-hand what most Canadians can only suspect --  that our well-loved health-care system is being destroyed for the benefit of a privileged few so they can profit from Canadians? health concerns."

The opening of domestic markets for the benefit of "for profit" healthcare corporations is also being pursued at the World Trade Organization under the General Agreement on Trade in Services (GATS). Canada is putting both healthcare and education on the table for negotiations.

Mr. Hellyer concluded that all Canadians who wish to fight to save Medicare must join forces and work together.  He  called  on  leaders  of  all  pro-Medicare organizations to meet and discuss a common strategy to save the system.

NOTE the words of Clayton Yeutter, chief U.S. trade negotiator just after the Canada/U.S. Free Trade Agreement was signed on October 3, 1987.

"We've signed a stunning new trade pact with Canada.  The Canadians don't know what they have signed.  In twenty years, they will be sucked into the U.S. economy." #

For more information contact:

Paul Hellyer - toll free: (877) 629-0841

cap-pac@istar.ca  #