Time for ‘ leap of faith’ on China
Scheer’s response to trade talks fuels protectionism
It’s shaping up to be the Free Trade Election Redux.
When Canadians go to the polls in two years, the contentious issue of a freetrade agreement with China is likely to loom large, just as the debate over whether to implement a deal with the United States did in 1988.
The difference this time around is that it is Andrew Scheer’s Conservative party that is set to oppose negotiating a deal with the world’s second- l argest economy, while Justin Trudeau’s Liberals are pushing for an agreement — a role reversal from the situation nearly 30 years ago, when Brian Mulroney’s Tories advocated the FTA and John Turner’s Liberals promised to “tear it up.”
Trudeau heads to China this weekend, with all signs pointing to the formal launch of talks that will likely drag on well past the 2019 election date (it took Australia 10 years to reach a deal).
The Conservatives have been reluctant to be too vocal on the subject, a sign that there is disquiet within caucus.
Inquiries on the official line Monday were stymied — “Erin O’Toole would be our point person for comment. Unfortunately, he is travelling with the Foreign Affairs committee and is off the grid,” said a spokesperson.
Yes, but surely the party has an official position?
“I would point to previous comments made by Andrew Scheer,” she said.
Those c omments appeared in an article penned for the Globe and Mail last summer, in which the Conservative leader called on Trudeau to “take a step back” from striking a bilateral trade deal with China.
In a garbled rejection of closer ties with the People’s Republic, Scheer fanned fears that Beijing is demanding full and open access to Canadian resources, while dismissing concerns over national security and human rights as “protectionism.”
“Conservatives do not want to see further concessions by the Trudeau Liberals to conclude with a deal that gives the benefits to the Chinese government and makes Canadian workers and businesses pay the price.”
Maude Barlow couldn’t have said it better. But this is the leader of the Conservative Party of Canada — a party one would hope stands f or minimal government interference in the economy; that believes in the benefits of two- way t rade; t hat agrees with Adam Smith’s contention that protectionism is “a great enemy of good management.”
Clearly, any progress toward a deal with China must be made with great caution. The uneasiness in the country about a deal with the People’s Republic reflects concerns about Chinese assertiveness in the South China Sea; about humanrights violations; about spying and influence peddling; and about investments by state- owned enterprises solely focused on the political interests of Beijing.
But there were good reasons the Australians struck a deal after 10 years of negotiations, despite its voters having similar concerns.
Preferential access offers the potential for cheaper prices on Chinese manufactured goods; reduced tariffs on Canadian commodities, beef, dairy, pork, wine and seafood; and improved access for financial services.
With the North American Free Trade Agreement likely to be mired in uncertainty for the foreseeable future, it makes sense for Canada to explore a new trading arrangement that bolsters the economy without compromising security.
Scheer’s Conservatives are keen to distinguish themselves from the Liberals but this is the wrong way to do it — pandering to the new protectionists in their membership, at the expense of the farmers, fishermen and foresters who would benefit from an open Chinese market.
Politically, it looks a dumb move. The Conservatives won a governing majority in 1988 because they were the only party in favour of the FTA — opinion polls showed slightly more Canadians against the agreement but Liberals and NDP split the anti-free trade vote.
If Scheer’s concern is that he can’t afford to flip- flop, he should get over it. Mulroney opposed a free- trade initiative in the 1984 election but U- turned after the release of the royal commission report by former Liberal finance minister Donald Macdonald that urged Canadians to “take a leap of faith.”
As the former prime minister explained at the time: “Only donkeys don’t change their minds.”