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Members of the industry also advise care in handling
issues related to Canada’s supply-managed industries. “Our
organization is not advocating for the preservation or the
dismantling of supply management in the renegotiations,” said
Lenz. “For the dairy industry, this is a sensitive subject, and
they’re important to us because we feed some of those animals.
We just hope that if our government has to make concessions in
this area, it doesn’t affect us with unintended consequences.”
After speaking before the House of Commons Standing
Committee on International Trade this past September, Lenz
commended the ag industry’s primary trade negotiators and
the Canadian government for listening to
stakeholder concerns. “We appreciate
the government engaging with us and
ensuring we’re heard,” he said. “We want
to ensure the cropping industry does
not lose anything we have right nowwith
NAFTA. We trust that our negotiators will
hear us andmake improvements.”
Cereals Canada president Cam Dahl
sees potential for improvement in the
alignment of regulatory processes and
reaching a common understanding
on risk assessment in pesticides. “It’s
important to recognize each country’s risk assessment process
so we don’t have misalignment or products being approved
in one of the three countries without being approved in the
others,” he said. “Also, to have common understanding on new
plant technologies so we share a regulatory approach.”
He added that renegotiation brings the opportunity to set
up a regulatory co-operation chapter within the agreement
to address unanticipated concerns. “We need a process to
address trade barrier issues that will pop up in five, 10, 15 years.”
“Having access that is free from tariffs, border taxes,
protectionist NTBs and regulations is paramount to
renegotiating NAFTA,” said Canadian Agri-Food Trade Alliance
(CAFTA) executive director Claire Citeau. “We are seeking
a do-no-harm approach. The first priority of the Canadian
government must be to maintain the success of the agreement
by keeping the free and fair access we have.”
THE TRANS-PACIFIC: CANADA’S DOORWAY TO JAPAN
Last January, the United States withdrew from the Trans-Pacific
Partnership (TPP). Canadian officials have since attended
meetings hosted by the remaining 11 countries. Canadian
agriculture and agri-food stand to win big, as striking a
deal eliminates U.S. competition in several Asian markets.
Ag industry players hope Canada will be more politically
supportive of TPP11, as it would secure a deal with Japan.
“We’re seeing engagement from the other TPP members,”
Dahl said. “Japan, Australia and New Zealand are pushing for an
agreement. I wish Canada was more involved in that leadership,
but we are seeing movement on that front.”
Canadian competitors in the region have free trade
agreements (FTAs) with key countries such as Japan. Last
August, Japan initiated a 50 per cent snap-back tariff on
Canadian beef. “Australia is the beneficiary of that because they
have an FTA there,” Dahl said. “If our competitors have these
agreements and we don’t, we’re at a disadvantage.”
TPP11 also holds tremendous potential for growth in other
markets. Countries including Indonesia, a major wheat market,
and South Korea have interest in joining. “If we can be at the
table when those countries are negotiating access, it would
significantly benefit Canada. There’s also the competitive
advantage of securing FTAs with
these countries while the U.S. is not
involved,” Dahl said. “There will be
real consequences if the agreement
proceeds and we’re left behind.”
Canada West Foundation senior policy
analyst Naomi Christensen said our
country has reason to join and champion
TPP11. “All Canada needs to do is ratify
it. It will not take resources fromNAFTA
renegotiations because it does not
require a lot of renegotiation itself.”
She added that American businesses
pushed for many measures in the existing TPP. “So, if Canada
and Mexico ratify this agreement, we will have trade measures
with 10 other countries the U.S. does not, yet their businesses
really want,” she said. “It will increase pressure on them and
give Canada leverage in the NAFTA renegotiations.”
Signing TPP11 is of particular importance to Western
Canada according to
The Art of the Trade Deal
, a Canada
West Foundation report outlining the benefits of signing a
partnership in the Trans-Pacific without the United States.
It estimates annual gains of $29 million in wheat and cereal
exports and $18 million in oilseed and vegetable oil exports
when the agreement is fully implemented in 2035. Annual
beef exports, projected to increase by more than $500 million
in Japan alone, are almost 60 per cent over the original TPP
projections and good news for feed producers.
While NAFTA and the TPP are the focus of attention, the
Canada-European Union Comprehensive Economic and Trade
Agreement (CETA)—provisionally implemented in September
of 2017—may yield additional benefit. CAFTA research
estimated it has the potential to drive additional exports of up
to $1.5 billion per year, including $100 million in grains and
oilseeds, $600 million in beef, $400 million in pork and $300
million in processed foods, fruits and vegetables. As well,
China continues to rise as an export target. “CAFTA urges the
Government of Canada to pursue an FTA with China,” said
Citeau. “Agri-food exports to China surpassed $6 billion in
2016. A trade agreement would allow our agri-food exporters
to punch through in the world’s second-largest economy with
enormous growth potential.”
“Having access that is free
from tariffs, border taxes,
protectionist NTBs and
regulations is paramount to
renegotiating NAFTA.”
–Claire Citeau