Pitchfork Economics: North of the Border – A Canadian Perspective on the Free Trade Era

Guest: Luke Savage (journalist, Jacobin)
Date: October 14, 2025

Overview

In this episode, producer Freddie Das sits down with Canadian political commentator Luke Savage to unpack how decades of free trade—ushered in by NAFTA and its successors—have profoundly reshaped Canada’s economy, politics, and relationship with the United States. Savage charts the history of Canadian trade debates, the consequences of a neoliberal trade regime, and asks: Who has actually benefited? What would a more democratic, worker-friendly trade model look like, and what lessons might Americans draw from Canada’s experience?

Key Discussion Points & Insights

1. Historical Roots of Canada–US Trade Relations

(03:38 – 07:35)

• Trade with the US has long been "a very significant, very controversial issue in Canadian politics," going back to the 19th century when Canada’s founding leadership erected tariff barriers to preserve national and economic independence.
• Debates about trade weren't just about economics but about national identity and autonomy, e.g., election battles in 1891 and 1911 over free trade.
• There was gradual liberalization through the 20th century, culminating in the Canada-US Free Trade Agreement (1980s), later expanded to NAFTA.

Notable Quote

• "It's always touched on more than just issues of commerce and economic policy. It's also touched on deeper and more emotive questions of national identity."
  — Luke Savage (04:04)

2. The Controversial Imposition of Free Trade

(05:20 – 07:35)

• From the 1950s–1980s, there was a consensus on economic protectionism, but the 1988 federal election shifted this, with the pro-free-trade Conservatives winning a majority of seats despite a minority of votes.
• NAFTA and its predecessors were highly controversial at the time but, once enacted, became "locked in," stifling future debate—until trade conflicts resurfaced during the Trump administration.

Notable Quote

• "There really is majority opposition to free trade... But I think after free trade was consolidated through NAFTA, it sort of fell off as a public conversation."
  — Luke Savage (06:29)

3. Who Benefited? Corporations, Not Workers

(07:52 – 11:27)

• Post-NAFTA, Savage argues, "the principal beneficiaries have really been corporations and especially, but not exclusively, U.S. multinationals."
• While growth occurred, both Canada and the US have become more unequal, with weakened public programs, a more service-based and financialized economy, and manufacturing job losses.
• Trade agreements limit the scope of Canadian government action: governments must show their policies aren’t too burdensome for corporations and must even incentivize privatization.

Notable Quote

• "The democratic sovereignty, the democratic scope the Canadian governments have had to legislate in the public good, I think has been significantly narrowed."
  — Luke Savage (09:40)

4. Leverage and Alternatives in Trade Policy

(11:41 – 15:35)

• Despite U.S. dominance, Canada has some negotiating leverage, especially as a supplier of oil and electricity.
• Past “managed trade” deals, like the 1965 Auto Pact, provided mutual benefits—protecting jobs and wages in key sectors—unlike today’s model prioritizing corporate interests.

Notable Quote

• "It's just not always the case that trade agreements between Canada and the United States have to take these really unequal forms. There are ways that they can be more socially beneficial on both sides of the border."
  — Luke Savage (14:20)

5. Deindustrialization and Socioeconomic Impacts

(16:41 – 19:43)

• Canada, especially manufacturing hubs in southwestern Ontario, has faced significant deindustrialization since the 1980s, echoing US Rust Belt decline.
• The shift to a post-industrial, service-based economy has meant fewer good jobs, weakened unions, and major social consequences.

Notable Quote

• "There is a very direct relationship between the advent of free trade and the transformation of these local economies and... the Canadian economy, like the US Economy, into something that is increasingly post-industrial."
  — Luke Savage (18:23)

6. Corporate Power and Its Influence

(20:17 – 23:22)

• US corporate lobbying has significantly shaped North American trade agreements, entrenching investor-state dispute mechanisms that can override government policy.
• Savage illustrates Walmart's entry to Canada post-NAFTA, which suppressed wages, undermined labor standards, and led to union-busting.

Notable Quote

• "These are supranational mechanisms that supersede the power of elected governments and from the Canadian point of view have tended to privilege the interests of, of U.S. corporations."
  — Luke Savage (20:32)
• "Walmart, by virtue of its size and by virtue of its business model, tends to lower employment standards wherever it goes."
  — Luke Savage (21:38)

7. What Would Fair, Worker-Friendly Trade Look Like?

(23:35 – 30:05)

• Savage calls for a "comprehensively different species of international agreement" designed to serve the public good rather than corporate interests.
• Possible provisions: no investor-state dispute mechanisms; requirements for firms to meet labor and environmental standards; democratic worker participation in negotiations.
• A truly worker-centered trade partnership "might sound utopian" but is no more unrealistic, Savage argues, than the status quo was before it existed.

Notable Quotes

• "If we can construct trade agreements that way, I see no reason why we can't ... do the reverse."
  — Luke Savage (25:07)
• "I'd love to see US and Canadian and Mexican workers be able to operate through democratic structures ... that allow them to operate as a bloc during trade negotiations."
  — Luke Savage (27:33)
• "I think ... if North America could institutionalize a trade agreement like that ... it would probably end up benefiting workers and communities throughout the entire world."
  — Luke Savage (29:32)

Timestamps for Key Segments

• 00:00 – 01:21: Show intro, episode framing
• 03:38 – 07:35: Historical evolution and controversy of Canada-US free trade
• 07:52 – 11:27: Economic impacts; beneficiaries of NAFTA and neoliberal trade
• 11:41 – 15:35: Alternatives and leverage; managed trade vs. free trade
• 16:41 – 19:43: Deindustrialization, social and political effects
• 20:17 – 23:22: Corporate lobbying, Walmart case study
• 23:35 – 30:05: Vision for fair trade, worker empowerment, and collective bargaining

Credits

“Pitchfork Economics” is produced by Civic Ventures.
For full transcripts and further reading, visit Pitchfork Economics.