Not enough talk about fair trade. (The Way It Is).

"The emperor has no clothes!" Do you remember the story from your childhood? You know, everyone is afraid to point out the obvious. Well, the same might be said about the great consternation and uproar created when Peter MacKay promised David Orchard that he would agree to a review of free trade as a trade off in order to win the leadership of the federal Progressive Conservative Party. Second prize was a week in Philadelphia.

"Excuse me, sir, but your fly is open" is perhaps a more fitting expression when contemplating the impact of free trade on Canada.

I doubt that anyone, including. Jean Chretien, would deny that the Free Trade Agreement with the United States has generally provided a huge boost to Canada's economy, just as the Goods and Services Tax has kept the federal government awash in surpluses. These two initiatives clearly are Brian Mulroney's legacy. But, that does not mean that something that is good is a miracle. Miraculous, they are not!

The problem is that free trade only deals with one kind of trade barrier - tariffs.

Or, as they are otherwise known, customs duties - taxes levied directly on commodities traded across international borders. As a result of the Free Trade Agreement with the United States, these have largely been eliminated. And that has served Canada's exporters and individual cost-conscious Canadian consumers well.

However, that is not the whole story. Our great American friends proclaim themselves as free traders, but never talk about fair trade.. They have raised to an art form the use of non-tariff barriers. While tariffs are typically used to protect startup industries until they can compete evenly, non-tariff barriers are used to protect failing or inefficient industries, especially those with political clout.

The tools of non-tariff barriers are things such as antidumping regulations, safety standards, disease control regulations, countervailing duties (to offset subsidies by an offending government), homeland security concerns, environmental violations, and a whole host of other devices that create unfair trade.

And, as we know only too well in recent years, these tools are extremely powerful and against which there seems to be no defense.

Despite our regular appeals to various world trade-governing bodies, here we go again facing non-tariff barriers to our export of softwood lumber to the United States. So too, it goes with hogs, wheat, steel and a host of other of our products. The difference this time is that "It really hurts!" Just look around Northern Ontario and British Columbia and count the number of permanent sawmill closures and indefinite layoffs in the forest products sector if you want to choose one outstanding example.

And there really does not seem to be anything that we can do about it. Normally, when under attack, one responds in a way that will damage your opponent at least as much as he has hurt you. You search for an effective disincentive.

What can Canada do to combat our bully neighbours to the south? Tax our automobile and auto parts exports? Hardly, unless we are looking to close plants and lose jobs. Tax our newsprint exports? Tax consumer goods and fresh vegetables imported from the U.S.?

Charge tourists an entry fee? Withdraw from N.O.R.A.D. or N.A.T.O.? Would we be missed?

I truly hate to quote Pierre Trudeau, but he had it right when he talked about the perils of sleeping with an elephant. It hurts when it rolls over you and we are about flat.

I become very angry when Canada seeks redress, like the polite, civil, gentle people we are, through discussion, negotiation and international appeals when our opponents are about to kick us in the crotch, once again. Punching a pillow or snarling at the dog only provides temporary and futile relief. No more Mr. Nice Guy. Fair is fair, but unfair truly is unfair and sometimes bare knuckles are the only option left.

"Put 'em up George!" Could we levy some sort of non-tariff environmental impact duty on the export of our electricity, natural gas and fresh water to the U.S.? Could we restrict how much we sell them?

So, good luck to Peter McKay and David Orchard and anyone else who will take a second look at our trade relations with the United States. Maybe they will succeed where others have failed to find a way to fend off the bully.

Bob Michels is a consultant and writer living in Atikokan.