Editorial Mining leads the way

Many see mining as part of Canada’s past, an anachronism that has no place among the high-tech and service industries of Canada in the twentieth century.

The truth is, however, that mining is a leader when it comes to bringing Canada in line with the modern economic world that is emerging in the second half of the twentieth century. That is because the truly fundamental characteristic of the emerging economic order is this axiom: the world is one single marketplace.

Gone are the days when a nation could insulate itself from events elsewhere around the globe. Canada can’t cut herself off from world events even if she wanted to.

The U.S. has come to that realization, notwithstanding the popular appeal of protectionism. Witness the Reagan administration’s efforts to have other industrialized nations stimulate their economies in order to increase demand for American goods. Would that kind of solution to domestic economic problems been contemplated in the heyday of U.S. economic power?

It is becoming increasingly obvious that Canada must compete in this global market. But, protected for decades by tariff barriers, there are few Canadian industries that can demonstrate how Canada can take on the world and win.

The mining industry, however, has been doing it for years. Because domestic markets account for very little of our mineral output, mining has had to look beyond our borders to sell its goods. We’ve competed with the best in the world and discovered that the best in the world is often ourselves.

So it’s not surprising that the government’s public relations efforts to sell its free trade agreement with the U.S. to the Canadian public makes little mention of mining. Mining has enjoyed a large measure of free trade with the U.S. — our biggest customer for minerals — and therefore has little to gain from the agreement. What the government wants for its selling job are examples of drastic improvement if the agreement is ratified, not mere ly maintenance of the status quo.

The mining industry has been four-square behind the free trade agreement, not because of what it might gain, but because of what it stands to lose if the agreement does not go through. Unlike Canada’s cultural industry, for example, mining wants to compete in the world marketplace, and sees the agreement as a means of staving off further forays by the forces of protectionism that threaten to reduce its opportunities.

Perhaps that’s why the government should consider holding up the mining industry as a shining example of what Canadians can do when they take on the world. Mining has been able to take one of the great strengths with which Canada was endowed — its mineral resources — and develop them for the benefit of all Canadians.

Exploiting resources may not appeal to those Canadians who don’t like to get their hands dirty with primary industries. We, too, would like to see Canada develop a stronger industrial sector. But a nation’s economy must look to its strengths, and natural resources are one of our greatest. Only on that strong foundation can we proceed to develop a stronger industrial economy.

Attempts to foster a vibrant industrial sector by protecting fledgling industries from outside competition has not worked. When those young industries outgrow the domestic market, they must adjust to a very competitive marketplace — an adjustment many fail to make or simply do not attempt because the real world is too intimidating after the soft life here in Canada.

If we want Canadian business to fulfill its full potential, to prosper and grow and support the way of life we value as Canadians, trade barriers must come down.