The House of Commons last week gave approval-in-principle to a free trade deal with Jordan that has little impact on Canada’s agricultural exporters.
Exports are worth less than $11 million, although that is expected to grow when the deal takes effect.
The bill is being sent to the Commons trade committee for study and could become law later this year.
While there were a few MP dissenters, the deal is seen as giving Canada an important toehold in the Arab Middle East.
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Pulse crops are a key export now. “The Canada-Jordan FTA is Canada’s first ever free trade agreement with an Arab country,” Gerald Keddy, parliamentary secretary to the trade minister, said during debate Sept. 28. “The Middle East and the North Africa region are becoming more important to Canadian business.”
However, while free trade with Jordan was considered non-controversial, a bill to implement a free trade deal with Panama that already buys $23.5 million in Canadian food products with the prospect for much more trade hit a wall in the Commons last week as New Democrat and Bloc Québécois MPs signalled that they will try to stymie the deal.
The NDP, opposed to Panama’s record on human rights, oppressing labour activists and offering a haven for money from Canadian tax evaders, said in debate Sept. 29 the legislation should not pass.
Federal trade minister Peter Van Loan said it would be good for the Canadian economy, including farmers.
“Tariffs will be lifted immediately on 94 percent of Canada’s agricultural exports to Panama,” he said in the Commons. “We are also pleased that Panama has recognized Canada’s inspection systems for beef and pork and has removed its previous ban on Canadian beef.”
Liberal trade critic Martha Hall Findlay said Liberals will support the legislation when it comes to a vote. However, the New Democrats could delay the issue coming to a vote for some time.
Agriculture export advocates support both the Jordan and Panama free trade deals as important niche market advances.
“It’s true that these are not huge deals compared to say India or the European Union but at the end of the day, any additional trade is good trade,” Kathleen Sullivan, executive director of the Canadian Agri-Food Trade Alliance, said in an interview. “And often, these new markets are important for some of our niche producers who find new markets for their products.”
Key exports to Panama are frozen french fries, lentils, oils, pork offal and cured pork.
During the opening day of Commons debate on the Panama deal, Manitoba rural Conservative James Bezan said delaying the deal with Panama will hurt farmers in his Selkirk-Interlake riding north of Winnipeg.
They (Panamanians) are huge users of pulse crops and red meats.”
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