OTTAWA (Staff) – The Liberal government last week rejected a proposal by a non-partisan committee of MPs that Canada retaliate against the U.S. unless it opens its borders to allow more imports of Canadian sugar and sugar-containing products.
“The imposition of unilateral retaliatory measures as requested by this bill would be a violation of Canada’s international trade obligations as contained in the NAFTA (North American Free Trade Agreement) and the agreement establishing the world trade organization,” Mac Harb, parliamentary secretary to the trade minister, told the Commons.
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Liberals refused a request to allow the issue to come to a Commons vote.
Continue pressure
But Harb vowed that Canada will continue to lobby the U.S. to open its sugar markets.
At the same time, Revenue Canada was poised this week to issue a final judgment on whether sugar is being dumped into Canada.
If, as expected, it affirms a preliminary decision that dumping occurs, it will clear the way for the Canadian International Trade Tribunal to rule by Nov. 6 whether that dumping hurts the interests of the Canadian sugar beet and refining industry. It could impose a permanent duty if injury is decided.
Canadian International Trade Tribunal hearings on the issue opened Oct. 2.
The all-party ‘sugar caucus’ of MPs complained in Parliament that the Americans have cut Canadian access to U.S. markets since the new world trade deal took effect.
It proposed that Canada try to use a threat of retaliation to blast its way into American markets.
Under new world trade rules, the U.S. is taking away Canada’s special access granted under the 1988 free trade agreement and replacing it with just a part of its overall quota.
It will reduce Canada’s access from an average 35,000-38,000 tonnes during the past three years to substantially less.
MPs from provinces with sugar beet production or sugar refining plants said 2,400 jobs and tens of millions of dollars in economic activity are at risk.
Ray Speaker (Reform-Lethbridge), a prominent member of the sugar caucus, complained that while the Americans are restricting access, Canada’s border remains much more open.
He said tough Canadian threats are necessary to make the Americans act more fairly.
