CETA $400-M fisheries fund not yet a done deal
Amid a flurry of headlines and hectic developments around the Canada-Europe free trade deal, one thing remains constant: The provincial government still hasn’t locked down that $400 million fisheries fund yet.
The latest headlines come out of the Belgian region of Wallonia, where the regional parliament voted against the deal, a move that could throw a wrench in the whole works.
In the wake of the Walloons’ vote, Prime Minister Justin Trudeau said that he’s still confident that the Comprehensive Economic and Trade Agreement (CETA) will become a reality, but the path forward is now a bit murkier.
This week, the provincial government also posted documents online in response to an access to information request, which shows correspondence between International Trade Minister Chrystia Freeland and provincial Business Minister Christopher Mitchelmore.
The correspondence shows that in a July letter, Freeland said, “Honouring the commitment made to your province with respect to the fisheries issue is of the utmost importance.”
But in the next sentence of the letter, she said, “We hope to address and resolve it in a mutually satisfactory manner in the near future.”
The $400-million fisheries innovation fund was announced way back in 2013 by then-premier Kathy Dunderdale as a condition of the CETA deal, with Ottawa putting up $280 million and the provincial government contributing $120 million,
As part of the free trade agreement, Newfoundland and Labrador had to drop the minimum processing requirements (MPRs) on seafood destined for Europe, and Dunderdale said she fought to make sure the province got paid for it.
But a year later, when then-premier Paul Davis was in power, it turned out that the deal was more murky, and the federal government started insisting that the money would only be paid out if the province could demonstrate tangible economic loss as a result of dropping the MPRs.
After a spat with Ottawa and a fruitless meeting with then-prime minister Stephen Harper, Davis and his ministers spent a few months vocally saying that Harper reneged on an honest deal, and he couldn’t be trusted.
At the time, Trudeau said he was supportive of the N.L. position that the $280 million from Ottawa should be paid out.
But although both federal and provincial governments are now run by Liberals, things are still up in the air.
The Telegram contacted the Global Affairs Canada and asked whether anything has been resolved, and if there are any details worked out about this situation since July.
Specifically, The Telegram asked if the $280-million portion of the CETA fund would be provided to the province in a lump sum, or over the course of several years, and whether the money would be tied to any sort of demonstrated economic loss.
The statement provided in response did not answer these questions in any way, or even address the topic directly.
Mitchelmore, though, told The Telegram that the relationship with the federal government has been co-operative, but the province’s position is firm.
“Newfoundland and Labrador agreed to relinquish our minimum processing requirements in return for this compensation,” he said. “Without the compensation, we will maintain our MPRs.”
Newfoundland and Labrador agreed to relinquish our minimum processing requirements in return for this compensation. Without the compensation, we will maintain our MPRs.”
Business Minister Christopher Mitchelmore