Direction needed | Frank McKenna, former New Brunswick premier, says Tories’ free trade deals lack long-term vision
The Canadian government should have a national food strategy vision before it locks the industry into trade deals, says a senior Canadian business executive.
Frank McKenna, deputy chair of the TD Bank Group and former New Brunswick premier, told a GrowCanada conference in Ottawa Nov. 28 that agriculture is an economic powerhouse, but signing free trade deals without an industry plan is shortsighted.
“We have the cart before the horse,” he said. “I think we need a national food strategy and then figure out where trade and market access fit into that.”
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As an example, McKenna cited the government’s decision to join the Trans-Pacific Partnership Asian rim trade negotiation without an understanding of what agricultural sectors could be damaged.
He said he has a brother in New Brunswick in the hog business and a cousin in the supply managed chicken industry.
“There has been some speculation that joining the TPP talks could lead to abandonment or some erosion of supply management,” said McKenna. “We haven’t had a national debate about that or a debate about where we want the industry to go and how it could be affected.”
He said farm sectors should be more involved in planning trade strategies.
Conference Board of Canada vice-president Michael Bloom argued that agricultural innovation in Canada lags in large part because private sector investment is low.
“Government funding of research and development in Canada is relatively strong, but business funding is low,” said Bloom.
“I think the issue is that we find it hard to attract private capital.”
McKenna said the private sector “doesn’t carry its weight” in supporting innovation in Canadian agriculture.
“I really do believe that in the productivity agenda, we are falling behind in Canada,” he said.
“We’re doing well and feel we’re in a comfortable pew, but we are falling behind and because of our lagging productivity, governments lose $75 billion or more in lower revenues.”
Bloom said regulations and public resistance to scientific advances that could make agriculture more productive are key parts of the problem.
“There is a disconnect between how the system functions and the public perception of it,” he said.
Bloom said education is the answer.
McKenna said GMO resistance, particularly in Europe, is not always about food. Often, it’s an attempt to protect small farmers.
