CANADA’S ROLE IN THE WORLD MARKETPLACE
International trade minister, Francois-Philippe Champagne, was in Saskatoon this week. On Wednesday, he spoke with Alex MacPherson about renegotiating the North American Free Trade Agreement, opportunities in Europe and the pulse problem in India.
Q There’s another round of NAFTA talks coming up in January. What sense are you getting from the U.S.?
A We (have made) progress on a number of chapters. But there should be no surprises. We always knew from the beginning that it would be challenging from time to time. But I think what really matters is to make sure we are clear, steadfast, constructive. This is the Canadian way. The Canadian way is to be at the table, to provide constructive proposals when we see something we think would not be in our best interest.
Q What happens if the U.S. proves intractable and pulls out of NAFTA?
A Let’s be honest: This is the most protectionist government since the 1930s. I’m always of the view that, obviously, trade agreements are enablers for trade. However, that being said, I am convinced, as before NAFTA, that people would still buy fruits from the U.S., that we would still be exporting major pieces of equipment, that we would still be exporting energy. Trade is a fact between our nations. When you exchange $2 billion a day and you have 400,000 people crossing the border every day, trade happens. The question is whether the border would be thinner or thicker.
Q How much can Canada lean on Europe and the CanadaEuropean Union Comprehensive Economic and Trade Agreement, given its relationship with the U. S.?
A I think Canadians and Saskatchewan would understand there’s never been a better time to diversify. On Sept. 21, the largest consumer market in the world opened to Canada, so 9,000 tariff lines went down to zero. This is a huge opportunity. And this gives us a first mover advantage. I think that people will seize the moment. But our diversification effort continues.
Q Regarding the Trans-Pacific Partnership, Canada did not come out of the negotiations earlier this month looking good. How will that affect the country’s credibility and others’ willingness to deal with Canada?
A I think people expect when you deal with Canada that we will be there for our workers, that we will be there for industry, that we’ll be there for the sector of the industry that matters to Canadians. We came (to Vietnam) and said, ‘This is not about next Friday; this is about the next decade.’ I said we would never be held to an artificial timeline. What we want is to get the right deal. People are expecting us to have a broad-base, ambitious trade agenda but one which is also based on Canadian values. What I think Canadians saw when we were in Danang is that we were standing up for Canadian industry.
Q What is the solution to solve the long-standing problem with pulses exported to India?
A The bilateral trade between Canada and India is $8 billion, so $4 billion to India from Canada — and more than $1 billion of that is pulses. This is about food security. We need to provide a short-term solution to the fumigation issue, to get derogation in place, but we also need to have long-term solutions and mechanism to provide stability and predictability to our farmers. Otherwise — I was very clear to (Indian officials) — our farmers will change their crops and we’ll change markets.