Why Canada is stalling: trade deal jeopardizes not only supply management, but votes

By 
Reading Time: 2 minutes

Published: May 7, 2015

Trans-Pacific Partnership negotiations a seething nest of trade complications especially when it comes to agricultural policy

WASHINGTON, D.C. — American politicians and trade officials are tired of waiting for Canada to begin negotiating on their demand to weaken supply management.

But granting president Barack Obama Trade Promotion Authority (TPA) could get something on the table, many acknowledge.

“Quite frankly, we’re not going to get Canadians to the table unless we have TPA,” said House of Representatives agriculture committee chair Michael Conaway, who supports legislation to provide TPA to Obama.

“If I’m in their shoes, I’m not going to make a deal that’s going to be negotiated with 535 ‘experts’ once the deal’s agreed to by the USTR (United States Trade Representative.)” The number of elected people in the U.S. Congress totals 535.

Read Also

thumb emoji

Supreme Court gives thumbs-up emoji case the thumbs down

Saskatchewan farmer wanted to appeal the court decision that a thumbs-up emoji served as a signature to a grain delivery contract.

The American demand for Canadian concessions on supply management comes as part of the Trans Pacific Partnership trade talks. The U.S. wants Canada to open Canadian markets to dairy, poultry and eggs in order for the U.S. to withdraw its complaints about Canada’s market access status. The administration has not said whether supply management is a deal-breaker.

The USTR laid out the U.S. position months ago, but Canada has not formally responded with a counter proposal. Republicans say they aren’t surprised by that because without TPA, any deal negotiated by the USTR would go to Congress for clause-by-clause approval. That’s not something most foreign governments are willing to accept, they say.

Democrats don’t disagree, but some leading agriculture committee members like Minnesota’s Collin Peterson are leery of voting for TPA without seeing what Canada will offer.

Peterson said he understands the Canadian position is complicated, with the Conservative government facing an election and supply management being a politically touchy subject.

“I think the Canadian government will (lose the election) if they negotiate a deal on supply management, on dairy and poultry,” said Peterson.

He fears that any offer made before an election would not weaken supply management enough to mollify American concerns since the government would not likely offer a bold proposal.

The TPP negotiations contain a seething nest of trade complications, with agriculture providing some of the most writhing concerns.

Japan’s restrictions on rice imports upset the U.S. industry as do other restrictions, tariffs and non-tariff barriers.

How highly Canadian supply management ranks on the list of U.S. concerns is hard to assess.

“It’s part of it,” said Conaway.

About the author

Ed White

Ed White

explore

Stories from our other publications