SO here’s how Canadian trade minister Pierre Pettigrew sees it.
The United States is Canada’s best trade ally and trade friend, despite the U.S. hostility to some key Canadian trade interests.
Since developing countries showed in Cancun, Mexico, in mid-September’s failure of World Trade Organization talks that they do not have enough sense to buy into the developed world plan for how trade can help them and the world economy, Canada is lucky to be able to rely on American markets.
“In Cancun, I really felt like I never loved the Americans so much,” Pettigrew told the Empire Club of Canada in Toronto last week. “I turned to (U.S. trade representative Robert) Zoellick after the collapse of the meeting and I said to Bob, ‘geez, am I glad we have that free trade agreement with you. Let’s deepen that relationship even further. Let’s trade with the people who want to trade’.”
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Set aside the arrogance of Pettigrew’s apparent view that developing countries that do not accept developed countries’ trade proposals as appropriate are anti-trade and unable to deal with the need for WTO compromise.
Set aside the fact that U.S. trade policy goals often are far from compatible with Canada’s and that Canada alleges to be an ally of developing world countries in their trade goals.
Developing countries joined the WTO for better or ill because they figure they cannot afford to be outside the club. They were in Cancun to demand their interests be met.
Their refusal to compromise led developed country trade ministers like Pettigrew to imply they are unwilling to compromise and to give in.
Beyond that rich country arrogance, Pettigrew’s view of the U.S. as Canada’s new, best trade friend should be tempered by a few reality snippets:
- The U.S. is using the WTO to attack the foundation of Canada’s supply management and Canadian Wheat Board marketing systems.
- The U.S. continues to harass Canadian export industry imports like wheat and softwood lumber, despite continued trade rulings against the American position.
- The U.S. is promoting a WTO trade rules solution that would allow maintenance of high domestic U.S. subsidies that depress prices worldwide, something Canada allegedly opposes.
- The U.S. has kept most Canadian beef out of the American market long after acknowledging it is safe.
What was going on in that pro-American Pettigrew speech? Let’s assume it was Liberal party politics. It is assumed that because of prime-minister-in-waiting Paul Martin’s business connections, he will be the most pro-American, pro-business prime minister since Tory Brian Mulroney and 1950s Liberal Louis St. Laurent before that.
Pettigrew, a candidate for a Martin cabinet position, used the Toronto speech to let the new boss know he’s on side.
“Being next to the United States of America is a privilege,” he said.
Being given cabinet responsibility to defend Canadian trade positions also is a privilege.
Pettigrew’s effusive praise of the Americans likely will catch Martin’s eye.
It also will catch the eye of Canadian farmers, who will wonder how dedicated the trade minister is to defending their interests when the going gets tough against his new best friend.
