Canada has been invited to join the Trans-Pacific Partnership negotiations, and agricultural exporters could not be happier.
However, supply managed sectors are in defensive mode, knowing that Canada will be under pressure to drop high tariffs on dairy, poultry and egg imports as the price of joining the TPP.
Exporters were thrilled.
“Joining the TPP is a major step towards Canada integrating into more trade relationships with other countries in the Asia-Pacific region,” said Grain Growers of Canada executive director Richard Phillips.
The cattle, pork, beef, grain and oilseed sectors see an opportunity for hundreds of millions of dollars in new sales opportunities once a deal is signed, likely several years away.
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“In the absence of Canadian membership in these critical negotiations, Canadian meat exports would have become increasingly disadvantaged in the dynamic and growing trans-Pacific marketplace,” said Canadian Meat Council executive director Jim Laws.
However, the announcement put supply management supporters on edge during a week when domestic pressure grew for politicians to end the 40-year-old system of production controls, import restrictions and price setting.
“It simply is time for politicians to understand that this is bad policy and must be changed,” former Liberal MP, trade critic and likely future Liberal party leadership candidate Martha Hall Findlay said June 21 as she released a report calling for the dismantling of supply management.
The United States, Australia and New Zealand have argued that a commitment to negotiate supply management should be a condition of allowing Canada to join the nine-nation talks that have been underway for several years.
When he announced Canada’s invitation to join the TPP negotiations last week, prime minister Stephen Harper insisted Canada did not agree to pre-conditions.
“We’re thrilled to be at the table,” agriculture minister Gerry Ritz added in Regina June 22. “We’re going to make a deal; not take a deal.”
He responded to a question about supply management by citing history.
“We’ve completed a number of trade agreements, and it’s not an impediment at all.”
The dairy and chicken sectors issued statements proclaiming faith in the Conservative government’s promise to preserve supply management while creating more trade opportunities for export sectors.
“The Canadian government has successfully concluded several trade deals and maintained supply management,” Dairy Farmers of Canada said.
“We expect the government will maintain its position to defend supply management in all international forums and bilateral trade negotiations.”
Political defenders of the system were not so sure.
Liberal trade critic Wayne Easter demanded that the government make clear if it made pre-condition concessions to be invited into the talks.
“Canada was undoubtedly forced to make concessions as a condition of being accepted into the trading partnership,” he said.
“We are asking the Conservative government to be transparent and provide all details of this trade negotiation.”
Hall Findlay clearly hopes the worst fears of her former Liberal caucus colleague are correct.
“The TPP is a great opportunity to do the right thing and to transition out of this wrong policy,” she said.
The aim of the talks is to create a trade zone of more than 600 million people, including some of the fastest growing markets in the world.
