OTTAWA – Once again, Canadian agriculture finds itself divided over the implications of a trade deal, this time the Canada-Chile free trade agreement signed Nov. 18.
There is no disagreement about the tariff-reducing parts of the deal, which will give Canadian grain, meat and other products better access to a growing market. Last year, Chile imported $77 million worth of product, mainly grain.
Durum wheat, barley, canola oil, beef and pork all will receive some duty-free access when the agreement takes effect June 2, 1997.
For other commodities, the barriers will fall more slowly. Supply managed sectors are effectively excluded.
Read Also
StatCan stands by its model-based crop forecast
Statistics Canada’s model-based production estimates are under scrutiny, but agency says it is confident in the results.
The controversy is on the agreement to eliminate over six years the ability of either country to use anti-dumping duties to block unfair imports from the other.
Canadian food exporters like the provision.
Importers such as the fruit and vegetable sector, supported by the Canadian Federation of Agriculture, oppose it.
“In our judgment, it is a mistake,” said CFA trade specialist and former president Don Knoerr. “It leaves us more defenceless going into a new trading relationship.”
The Canadian horticultural industry agrees. It has been one of the biggest users of anti-dumping rules, winning protection from unfair imports of U.S. potatoes, yellow onions and lettuce into B.C. and Red Delicious apples across the country.
Anti-dumping wanted
“Anti-dump is one of the few ways we can protect ourselves from unfair imports,” said Steve Whitney of the Canadian Horticultural Council. “I think the big issue here is whether this now sets the stage for a continued push to get rid of anti-dumping rules within the NAFTA (North American Free Trade Agreement). We oppose this.”
In fact, the federal government has made it clear that is a goal. Background documents released with the Nov. 18 signing referred to “Canada’s long-term objective to reform trade remedy law within free trade areas.”
For an export sector like pork, that is good news. It has seen the United States use anti-dumping investigations as a form of trade barrier.
“As an exporting sector, our self-interest is that a move away from anti-dump is a positive thing,” said Martin Rice of the Canadian Pork Council.
Canadian officials were enthused the deal will give Canada an early advantage in the markets of Chile and its South American neighbors.
