Premier warns of free-trade ‘challenges’
Wynne pushes Ottawa for billions in ‘transitional funding’ to ease province’s adjustment to new Trans-Pacific deal
Ontario’s auto and agri-food sectors will need billions in transitional funding to survive the impact of the new Trans-Pacific Partnership, says Premier Kathleen Wynne.
Speaking to the Toronto Region Board of Trade Thursday morning, Wynne said while “more free trade is a good thing for Ontario workers,” the deal with countries such as Australia, Japan and Mexico “creates both opportunities and challenges for us.”
“We know there will be consequences for workers in Ontario’s auto and agriculture sectors,” she said of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP.
“I have been clear that new opportunities for trade should not come at the expense of these workers. That would not be fair. It would hurt Canada’s competitiveness.
“And frankly, as a country, we haven’t always got it right when it comes to properly dealing with the challenges of trade deals while benefitting from the opportunities.”
Wynne said the CPTPP “should only be ratified after the federal government has worked with us to put in place the transitional funding that our workers deserve.”
Since the U.S. is not in the partnership, “the dynamics are now slightly different — and require further analysis,” she added. “But the principle hasn’t changed. Our farmers and autoworkers should not be placed at an unfair disadvantage by this trade agreement, which is why I am calling on the federal government to work with us to get transitional assistance in place before the deal is ratified.”
The original TPP included funding to help the automotive sector through an “innovation fund,” as well as help for agricultural businesses, such as dairy, that are supplymanaged. Wynne — who spoke to the board of trade before heading to Washington to combat protectionism and boost trade ties with U.S. governors — said that over the next decade the auto sector needs $1.26 billion and agrifood $1.4 billion.
Opposition critics accused the Liberals of not doing enough to protect Ontario jobs.
NDP Leader Andrea Horwath said Wynne is “really late to the game” given New Democrats have for years been “sounding the alarm bells on the impact of the TPP on auto jobs, on dairy and cheese, the (agriculture sector).”
Simply asking Ottawa for transition money is a signal, and “what it means is we’re going to lose those jobs, and we just need a cushion,” Horwath said. “I really don’t think we should give up on those jobs,” she added, because they provide Ontario families with good salaries and benefits. “To simply throw up your hands and say, ‘well, we need transition funding’ — maybe we need to relook at those deals and make sure we keep those jobs in Ontario.”
Ontario PC international trade critic Lisa Thompson accused Wynne of “dangerously playing politics with international trade” especially as the government pushes its anti-Buy American legislation allowing the province to retaliate should states enact policies to shut out Ontario business.
The federal funding Wynne is re- questing would help retain jobs, boost investment and innovation.
Ontario should, however, “lobby actively for federal support in training programs and relocation” and support for workers as the economy diversifies, said Professor Will Mitchell of the University of Toronto’s Rotman School of Management.
In the short term, easing trade barriers will lead to lower prices, but also impact jobs, he said. Looking at the long term, the question becomes, “is the economy we are currently in viable, in global terms? The short answer is no. We are an amazing country but we are not big enough to be a market all on our own.” The CPTPP boosts free trade between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.