"It is clear that free trade agreements are causing some relocations.
But the situation is not dramatic, "predicts
Belgracem Rahmani, an expert in international
free trade economist at HEC Montreal.
The expert reminds widespread concern before the entry into force of the North American Free Trade Agreement in 1994.
"The players shouted to relocation. Finally, we did not attend the net job losses, although some manufacturers have actually left for Mexico, "he said.
Manufacturing wages in developing countries are lower than those offered in Canada. However, several other factors come into play when it comes to consider the relocation of a production, says Belgracem Rahmani.
"The Indian workers for example they are less productive and goods produced in Canada must be delivered at high prices among others. "
India is also focusing its activities on the production of manufactured goods in the years to come But for now India operates mainly in the service sector such as call centers which need not be delivered.
"In this case, we must also consider the Indian bureaucracy, sometimes corrupt, and the cost of obtaining permits to operate legally," says
Rahmani Belgracem.
You have to specialize
However there may be a risk of relocation if Canadian companies are not specialized enough, says Su Zhan, director of studies and research on contemporary Asia.
"Our manufacturing companies must differentiate their products, he said. Compete with businesses in low-end textile India, for example would be a losing party. "
The manufactures of Canada must according to Su Zhan, focus on niche products, high quality clothing, for example. A message from the needle industry has long understood.
Apparel manufacturing low-end moved to Asia with the recent acceleration of globalization, said Jean Rivard, Executive Director of Human Resources Council of the garment industry (AHRC).
"Companies like Kanuk, Louis Garneau and Canada Goose are focused on niche products of high quality, he says. These can only be made by a Canadian workforce highly skilled. "
Influx of Indian expertise
The gain in Canada know-how with a free trade agreement with India, ahead Belgracem Rahmani.
"The Indians are at the top exporting countries of gray matter, says the economist. In Silicon Valley, for example, Indians are the first in number immediately after the Americans. "
Large Indian companies like TATA, working in sectors as diverse as automotive, chemicals and information technology, would be interested to come here.
"They benefit from our rich markets and create employment at the same time minimizing the potential impact of offshoring," says Mr. Rahmani.
The Bloc is concerned about free trade with India
The Bloc Quebecois is not opposed outright to a free trade agreement with India, says economic adviser Daniel Paille. However it should take precautions.
"We must not forget that we lost the factories and the factory Electrolyte Croce of the Assumption because of free trade agreements," said he.
The Harper government sign, in his view, free trade agreements "with religion because it assumes that it's good."
Economic adviser is also concerned about the poor conditions of work offered in Asian companies."In India and China child labor is widespread, we must think about that when we want to occur in developing countries. "
