Former PM packs a punch on tariffs, COOL, inter-provincial trade

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Published: December 11, 2014

He’s no longer prime minister, but Brian Mulroney hasn’t forgotten the art of politics.

In a Dec. 3 speech to farmers, industry officials and other high profile agricultural folks at the Grow Canada conference in Ottawa, Canada’s 18th prime minister laid down a speech that would leave the room buzzing for hours.

Mulroney, now 75, had been invited to give the conference’s keynote address. The subject was international trade. It’s an area Mulroney knows well, having been in office during the Canada-United States Free Trade Agreement negotiations in the 1980s, which would later morph into today’s North American Free Trade Agreement (NAFTA) signed in 1994.

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In a whirlwind 45-minute speech, Mulroney tackled such issues as the stalled Trans-Pacific Partnership agreement (TPP), Canada’s ongoing spat with the U.S. over country-of-origin labelling, supply management and provincial-federal politics.

Agriculture, he admitted, has always been one of the most protected industries. Yet, with increasing globalization and a burgeoning trade agenda, Mulroney warned, the conversation needs to change. Fast.

He said supply management for dairy and poultry has to go, although the phase-out should be “careful, innovative and generous.” His comments would be met with cautious applause, prompting him to joke, “I can tell there are not many Quebecers in the room.”

However, convincing politicians to join the conversation will be no easy feat, Mulroney conceded.

“I recognize the political allergies on the issue in Canada, especially in an election, but cannot help but think we tend to ignore both the benefits for Canadians and the enormous export potential that could be derived if we were to unshackle these sectors in a sensible manner,” he said.

Ending supply management isn’t the only conversation Canadian politicians should be having, Mulroney said. There is also an urgent need for a meeting between the country’s 10 premiers and the prime minister on interprovincial trade and infrastructure. Interprovincial trade is a longstanding issue that should be grabbed “by the scruff of the neck” and fixed immediately, Mulroney said, while a similar chat should be held about the country’s crumbling infrastructure system.

For most political speakers, the suggestion that Canada should get rid of its longstanding supply management system and improve communication across various political channels on two major issues would be enough of a conversation starter.

Not for Mulroney, who also used his address to tackle this country’s wavering friendship with the U.S.

He said the Americans’ continued defense of COOL goes against the very “spirit” of NAFTA, not to mention international trade rules.

The World Trade Organization has been exceptionally clear on this issue, he said, ruling against the policy three times thus far. As well, the impact on North America’s integrated livestock industry is evident.

However, his harshest criticism was directed at U.S. president Barack Obama and his handling of the TPP. The American leader’s inability to secure fast-track authority for the agreement was an insult to Canada-U.S. relations, he said.

“(President Obama) doesn’t appear to be very good at remembering how important Canada is to him and his country. We’re the best neighbours anyone could ever have and he shouldn’t forget it,” Mulroney said, which triggered broad applause.

Fast-track authority allows Congress to put the final trade agreement to a simple yes-no vote, with no chance for amendments. The legislation is opposed by several high profile Democrats who argue the move is undemocratic.

Mulroney said the lack of such authority in the TPP agreement is a “vital omission.” A trade deal cannot be reached without it.

“We could not have achieved the Canada-United States trade agreement if president (Ronald) Reagan hadn’t secured fast-tracked authority from the United States Senate,” Mulroney said. “You can’t do it.”

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