Canada can’t afford to reject trade deal: commissioner
A foreign diplomat with a distaste for Canada’s supply managed dairy sector is optimistic Canada will be at the table if, and when, a 12-country free trade deal is completed.
It’s a subject that has stirred debate as Canada participates in negotiations for the Trans-Pacific Partnership, a large trade pact that could provide greater access for Canadian-made goods to growing and potentially lucrative Asia-Pacific markets.
“We’re getting into the end game of (TPP),” Simon Tucker told the Feeding the Global Middle Class conference in Saskatoon last week.
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“The fact of the matter is we are now in a situation where we’re dealing with the most sensitive agricultural market access issues in TPP.… There’s a number of countries that have high tariffs. Canada has the highest dairy tariffs in the world.”
Tucker is high commissioner to Canada for New Zealand, which is the world’s largest dairy exporter.
He has targeted Canadian tariffs as an obstacle to free trade pacts, a sentiment echoed by pro-trade think-tanks, lobbyists and columnists and refuted by supply-managed farm groups and government officials.
“I actually believe that there is a sensible way forward through this,” said Tucker. “To me, TPP is such a good news story for Canada, I cannot foresee any situation where Canada wouldn’t be a part of it.”
TPP talks have been ongoing for years, but news that U.S. lawmakers are making headway on legislation that would allow for fast track negotiating authority is a harbinger that talks could be nearing a close.
The legislation would keep the U.S. Congress from amending the agreement. Officials from multiple countries have identified the legislation as key to the success of the TPP.
“I’m still skeptical. Certainly they are putting on a good show for (Japanese prime minister Shinzo) Abe,” said agriculture minister Gerry Ritz.
“At the end of the day, we’ll work with them. These international trade agreements are as important for Canada as they are for the other countries that taking part. Hopefully they’ll get their ducks in a row and get it done.”
Japanese officials have also said bilateral talks between the United States and Japan around automobile and rice tariffs, also seen as paramount to the deal, are progressing.
TPP has drawn support from a cross-section of the Canadian farm sector.
Murad Al-Katib, president of AGT Food & Ingredients, a major pulse exporter based in Saskatchewan, said issues of low level presence, maximum residue limits and zero tolerance policies that affect Canadian crop producers can be ad-dressed in these trade agreements.
“The Codex (maximum residue limits) system and other standardized regimes haven’t been able to keep up with the pace of growth,” said Al-Katib.
“Some of these bilateral agreements and these larger agreements give us an ability to align these processes. Those are the types of issues that are on the table. We’re having progress made on those and I’m optimistic that these forums give us an advantage.”
Canadian meat groups are looking to the TPP to reduce tariffs on exports, particularly into traditionally protectionist Japan.
“I think what we’ll see next is likely some kind of announcement on what Japan and the U.S. have agreed (upon),” said Ron Bonnett, president of the Canadian Federation of Agriculture, whose members include supply-managed dairy and poultry groups.
“I know there has been a lot of discussion about having a deal done by mid-year. I think everybody starts worrying about getting into election cycles when you have an agreement like this in place. I would expect to see some moves quickly.”
Bonnett said Canada’s dairy industry can be protected in a TPP deal, citing the country’s most recent deal with the European Union. That agreement saw EU producers receive new quota allocation.
“I think there will still be some caution to make sure that we don’t see the Canadian industry just devastated by a trade deal,” said Bonnett.
Tucker said a growing global demand for dairy can’t be met by New Zealand alone.
“There is going to be opportunity for Canada to play a role here, I believe, to be world class exporters,” he said.
“I believe the Canadian dairy industry is going to take advantage of this growing demand. Somehow we need to get from where we are today to the end, but I think it’s entirely possible.”
Contact dan.yates@producer.com
