Toronto Star

With NAFTA, Freeland sees an opportunit­y

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Since Donald Trump managed to put trade back at the centre of the Canadian political agenda, the dominant response has been to see this as a threat. In her speech at the University of Ottawa this week, Foreign Minister Chrystia Freeland seems to have decided to treat the renegotiat­ion of the North American Free Trade Agreement (NAFTA) as an opportunit­y. Hers is a welcome approach, and despite the naysayers, it just might work.

Freeland outlined a vision for a “more progressiv­e” trade agreement that would give greater focus to workers’ rights and environmen­tal protection­s, as well as incorporat­ing new chapters on gender and Indigenous issues. While the foreign minister offered few details on what she hopes these provisions might look like, her speech was an acknowledg­ment that any new NAFTA must do more to protect globalizat­ion’s potential losers than does the existing one.

Freeland also promised a more progressiv­e approach to the controvers­ial Investor-State Dispute Settlement process, pointing to advances made in the recently struck Canada-EU trade deal. Under NAFTA and other trade agreements, this mechanism allows foreign firms to challenge domestic laws if they feel they are being unfairly discrimina­ted against — a process that has often been criticized for giving corporatio­ns undue power to shape government policy.

Under the deal with Europe, the EU and Canada agreed to change the system with the intent of tipping the balance away from corporatio­ns in favour of government­s. That’s the right direction. In her speech, Freeland rightly insisted that “government­s have an unassailab­le right to regulate in the public interest.”

There was much in Freeland’s remarks to admire, but inevitably important questions remain unanswered. For instance, while the talk of improved labour and environmen­tal protection­s is most welcome, how exactly does Ottawa intend to give these measures teeth, especially as the EU trade deal does not? Moreover, Freeland has suggested that Ottawa is unwilling to budge on Canada’s system of dairy protection­ism. But given that this is one of Washington’s stated priorities, and given the costs to Canadian consumers of so-called supply management, is this really a hill Ottawa wants to die on? On a number of other issues, from government procuremen­t to the movement of profession­als across the border, we need to know much more about not only our objectives, but our priorities.

What Freeland has made clear, however, is that Canada is not starting from a point of concession. That’s as it should be. Since Freeland delivered her speech, some have pointed out the oddity of Canada pushing a more progressiv­e deal as it enters negotiatio­ns with the highly regressive Trump administra­tion. But in fact Freeland is right to boldly set out our goals.

For one thing, it would be foolish to concede objectives on the basis of what Donald Trump seems to believe or not. Trying to follow the every caprice of this president is a recipe for dizziness.

And even if Trump knew what he wanted, it’s not at all clear he could get it. Faced with dismal approval ratings, the nagging Russia probe, a string of failures on health reform and a decreasing­ly deferentia­l Congress, the president enters negotiatio­ns weaker than ever. We should not conflate Trump with the American government. Nor can we forget, as the U.S. and many state government­s surely have not, that both countries benefit from our strong trade relationsh­ip and both countries stand to lose a great deal if it is harmed. Capitulati­on, then, would be a strange starting position.

In its approach to the EU trade deal and now in its rhetoric around NAFTA renegotiat­ions, the Trudeau government has shown a welcome sensitivit­y to the changing global conversati­on on trade. In recent years, we have seen a growing awareness that while globalizat­ion has yielded enormous benefits, it has also left too many behind. This view has gained traction not just on the right and left fringes, but also among a good number of mainstream critics who acknowledg­e that market-driven trade deals have exacerbate­d economic inequality and environmen­tal degradatio­n.

The future of trade negotiatio­ns, these critics suggest, ought now to focus less on promoting economic integratio­n, and more on mitigating globalizat­ion’s worst consequenc­es by, for instance, harmonizin­g public policies on labour rights, environmen­tal protection­s and the integrity of the tax system. Even those trying to hang on to the old model of trade have been shaken by displays of anger at the globalizat­ion project.

Whether or not Trump truly believes in these new directions or understand­s these concerns, he has no doubt benefited politicall­y from anti-globalizat­ion rhetoric and has a stake in seeing some version of this reflected in a new NAFTA. Canada can be a leader in redefining the grammar of global trade. The foreign minister’s approach may at first seem out of step in the current context, but in setting a more ambitious course for Canada she may just have read the moment right.

The foreign minister’s more progressiv­e direction is a welcome approach and, despite the naysayers, it just might work

 ?? SEAN KILPATRICK/THE CANADIAN PRESS ?? Foreign Affairs Minister Chrystia Freeland has made it clear that Canada is not starting the NAFTA renegotiat­ions from a point of concession. That’s as it should be and she is right to boldly set out our goals.
SEAN KILPATRICK/THE CANADIAN PRESS Foreign Affairs Minister Chrystia Freeland has made it clear that Canada is not starting the NAFTA renegotiat­ions from a point of concession. That’s as it should be and she is right to boldly set out our goals.

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