HEAT OVER TRADE DEAL
Goodale answers the critics
Ralph Goodale was in Saskatchewan talking trade on Wednesday and said farming groups are “overwhelmingly positive” about the new deal with the United States.
“It is a very positive turn of events that will bring more clarity, more stability, a greater sense of confidence about the future,” Goodale said, adding that agricultural exporters are already talking about how they can take advantage of “the doors that are now open” with the new United States-canada-mexico Agreement (USMCA).
But he knows there are still critics in the province. Goodale is assuring Saskatchewan’s steelworkers and dairy farmers that the federal government hasn’t forgotten about them.
USMCA has left some feeling like their interests were sacrificed for others. It provides no relief to a steel industry hampered by 25-per-cent tariffs the U.S. imposed in March.
It grants American farmers a 3.6-per-cent toehold in Canada’s heavily protected dairy sector.
That news has attracted harsh criticism in Quebec, which has thousands of dairy farms. Saskatchewan has only 165.
But they’re just as passionate about defending the system of supply management, which relies on sky-high tariffs to keep Canadian milk, butter and cheese more expensive than they would be on world markets.
“It was a shock to dairy farmers and it was a bit of a betrayal,” said Joy Smith, spokeswoman for Saskmilk.
But Goodale has a simple answer to that objection: It could have been much worse.
“I think it’s important to remember what the original United States demand was, the demand that they repeated over and over and over and over again, right up to the very final hours,” he said.
“They wanted supply management totally dismantled.”
Smith takes issue with that. She pointed to comments in June from the U.S. agriculture minister suggesting that wasn’t the American position. However, it’s easy to dig up comments suggesting the opposite, including from the mouth of President Donald Trump.
Goodale further stated there will be compensation for dairy farmers.
“I can imagine that the dairy industry is going to be anxious about this until they see the terms and conditions of the of the compensation,” he said, adding that the specifics will be worked out “quickly.”
But Smith said Saskatchewan dairy farmers aren’t looking for a handout.
“Farmers’ livelihoods are not for sale,” she said. “Dairy farmers did not go into this wanting compensation.
“They did not go into it wanting to be paid for a loss of a portion of their livelihood forever.”
She said she’s surprised other sectors are so happy about the agreement, as she sees no escape from the whims of the president.
“Donald Trump could wake up tomorrow and decide under Section 232 to slap tariffs on beef,” she said. “This is not something that is protected under this deal any more than the steel and aluminum industries were given relief.”
Trump relied on that section to justify his steel and aluminum tariffs, arguing they were a response to national security threats.
Goodale said the federal government continues to view that as “wrong.”
He said the issue remains a “major preoccupation for the prime minister.” Foreign Minister Chrystia Freeland views the tariffs as a “hanging thread,” he added, and wants “a quick solution.”
Goodale assured steelworkers that Ottawa will ride the momentum coming out of USMCA and continue to “vigorously negotiate” to defend their interests.
“The steel employees and the companies can be absolutely sure and certain that the government’s commitment on this remains very strong,” he said.
Dairy farmers did not go into this wanting compensation. They did not go into it wanting to be paid for a loss of a portion of their livelihood forever.