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Spring
2017
Grains
West
30
Bonnett said that he’s still confident
the deal will move ahead, but “it will
take some time and may hinge on
the upcoming election in Germany.”
However, just as Trump’s election has
put the TPP at risk, the Brexit vote has
sparked uncertainty about CETA.
“The same anti-trade rhetoric is
happening in Europe,” said Bonnett. “It’s
interesting to see the British government
struggling in the wake of Brexit. Everyone
partied after the vote; now it’s like they’ve
woken up with a hangover and are
grappling with some tough questions:
‘What did we do? Now what? How do
we get out of it?’”
In today’s trade climate, even long-
standing deals like the North American
Free Trade Agreement (NAFTA), enacted
in 1994, aren’t secure, as Trump has
vowed to renegotiate the terms of the
agreement.
Given that NAFTA created one of
the world’s largest free trade zones,
spanning Canada, the United States and
Mexico, Trump’s promise to renegotiate
the terms of the deal has raised eyebrows
and heart rates.
“We are working to help lawmakers
understand how trade benefits both
Canada and the U.S.,” said Innes.
For example, Innes pointed to the tariff-
free access for Canadian canola oil and
meal south of the border under NAFTA.
“The U.S. is our No. 1 canola market,”
said Innes. “Because our canola meal
helps cows produce up to one kilogram
more of milk per day, it’s a huge boost
to American dairy farmers and the U.S.
economy as a whole.”
As important as these deals are for
Canadian agriculture, there is another
issue that warrants attention from industry.
“I see the more significant threat being
non-tariff trade barriers,” said CamDahl,
president of Cereals Canada. “It’s not just
about tariffs. Sanitary and phytosanitary
issues, such as non-science-based barriers
to pesticides, pose an even greater
danger to agriculture. We have to work
together across commodities and as a
Canadian team to tackle these issues.”
Though few would blame Innes and
others for wringing their hands over
the current trade issues, he and his
colleagues recognize that the window for
dwelling on problems has passed—it’s
time for solutions.
“The best safeguards against
protectionism are a strong, multilateral
trading system and regional trade
agreements,” said Citeau. “The Canadian
government must push hard for a solid
global trading regime and continue to
deliver new trade deals.”
According to Dahl, “the first priority for
agriculture is a free trade agreement with
Japan. We also need to work on bilateral
deals with other countries to address
competitive imbalances that would have
been solved by the TPP.”
While he agreed with Dahl about the
importance of Japan, Innes suggested
Canadian agriculture’s trade priorities
should stretch much further. “Canada has
to be a leader in the Asia-Pacific region
to ensure competitive access for our
agriculture products,” he said. “Farmers
in Manitoba should have the same
opportunities as those in North Dakota
or South Australia. To achieve that, our
government must be ambitious in its
Asia-Pacific trade agenda.”
WILL FACTS TRUMP FEAR?
“The first casualty of war is truth.” Fast-
forward 100 years and those words, first
uttered by a Republican senator in 1917,
could easily be applied to the current war
on global trade.
“Many people who benefit from
trade don’t even realize it,” said John
Masswohl, director of government and
international relations for the Canadian
Cattlemen’s Association.
Even among farmers, Masswohl finds
that many from south of the border grow
wheat, corn or soybeans and sell them to
a local dealer or mill, yet don’t necessarily
see their grain become flour that is value-
added and then exported.
“Adding to the challenge is [the fact]
that those who oppose trade are good
at organizing protests and getting
attention,” said Masswohl. “The public