Dairy last obstacle as trade deal near

ATLANTA , Ga. • Negotiators have taken a big step toward a historic agreement that would knock down trade barriers on four continents while opening important sectors to greater foreign competition.

A Trans-Pacific Partnership deal could be announced Saturday if negotiators clear the final hurdles including the tallest remaining one involving Canada: dairy import limits.

The broad contours of a deal are mostly sketched out. Canadian exporters of beef, pork, canola, grains, machinery, medical devices, minerals, seafood, aeronautics and other products would have greater tariff-free access to 11 countries including Japan, Vietnam, Australia and Peru.

Now those countries are knocking on Canada’s door.

They’ve demanded a greater presence in two areas that have historically supported good-paying jobs: the auto sector and dairy. A deal on auto parts is mostly done, according to various stakeholder groups watching the negotiations. The final fight turns to Canada’s grocery shelves, where importers want more than the meagre 10-per-cent space set aside for foreign milk and cheese.

That politically sensitive issue remains one of the few obstacles to completing a pact that would cover 40 per cent of the world’s GDP, including some fast-growing economies

I’m pretty optimistic it will come together (this weekend)

and additional countries already angling to join.

“I’m pretty optimistic it will come together (this weekend) — 80-20,” said Alan Wolff, a former U.S. negotiator who now leads the American National Foreign Trade Council, a commercial association.

“But because it’s a negotiation there could always be a holdup.”

That’s exactly what happened at the last round in Maui. Canadian and Mexican negotiators were blindsided by a Japan-U.S. deal that would have doubled the allowance for cheaper car parts without tariffs from Japanese suppliers in non-TPP countries like China and Thailand.

Those differences appear to have been settled.

The hallway chatter from industry lobbyists at the convention site suggested the percentages for import thresholds might not differ significantly from the Maui offer — with perhaps a five-per-cent change for parts. But it’s expected that new exceptions will be built into the agreement for different types of parts, limiting the scope of the change.

Canada’s envoy to the talks wouldn’t talk percentages. He also said some details still must be worked out. But International Trade Minister Ed Fast confirmed Friday that major moves had been made. “There’s still some work left to be done,” said Fast.

“But we’re optimistic that issue can be solved and we’ll have an outcome that will support our Canadian auto sector and ensure its long-term viability in Canada.”