Political battle lines drawn over the new pact
The federal government has signed on to the ambitious Trans- Pacific Partnership deal, but Canada’s participation in the world’s largest trading bloc may well depend on whom Canadians elect Oct. 19.
With two weeks left in the federal campaign, the political and economic stakes couldn’t be much higher, and the three major parties swiftly explained where they stood Monday.
Calling it a “historic day for Canada,” Conservative Leader Stephen Harper announced that Canada had signed on to the trade partnership ( TPP) after several years of negotiations.
The sweeping deal will open new markets even as the government spends billions to protect farmers.
Liberal Leader Justin Trudeau, who is neck- andneck with Harper in recent opinion polls, strongly suggested his party would support the trade deal among 12 Pacific Rim nations, stressing the Liberals have “resolutely and consistently” been pro- trade.
But NDP Leader Tom Mulcair said the Conservatives have sold out Canada’s auto sector and dairy farmers, and said he will not support the deal if it means thousands of job losses.
Mulcair demanded Harper “come clean” and release the full text of the TPP agreement before voting day Oct. 19, and reiterated an NDP government would “not be bound” by any trade deal completed during the campaign.
Mulcair is campaigning against parts of the deal in hopes of shoring up support in Quebec and Ontario.
“If elected, Canada will not be a part of an agreement that removes 20,000 Canadian jobs, period,” he said. Mulcair sent a letter to Harper last Friday in which he indicated he would not feel bound by anything the Conservative government negotiated.
“Mr. Trudeau’s team already said in Ottawa on the weekend that they feel bound by this agreement. I don’t. Now that we’ve got more details, I’m absolutely certain I would never be able to support this deal.
“Across Canada, there is a really strong hit for everybody in our supply managed sector.
So instead of standing up for the Canadian supply management, ( Harper) let the other ones run roughshod over him.”
Mulcair has been accused by Harper of leading a party that is ideologically opposed to free- trade deals. The NDP leader rejected that claim, saying he is “resolutely in favour of increased trade” as long as it doesn’t come at the expense of jobs.
“It’s just foolhardy,” he said of Canada’s concessions on the TPP.
Harper maintained the agreement would have long- term benefits for the Canadian economy, and said it was an opportunity that could not be passed up.
“This is a once- in- a- lifetime agreement, a once- in- a- lifetime moment of decision. You are either in or out, and we choose to be in because there is simply too much to gain for Canada,” Harper told reporters in Ottawa. “Ten years from now, I predict, with one 100 per cent certainty, people are looking back, they will say if we got in it, they will say ‘ That was a great thing,’ and if we haven’t, they will say ‘ That was a terrible error.’”
Trade ministers meeting in Atlanta, including Canada’s Ed Fast, wrapped up frantic overnight negotiations just hours earlier.
Harper said “the decision for the next Parliament” will be whether to accept and implement the deal. But he said “this deal is without any doubt whatsoever in the best interests of the Canadian economy,” and is one that “frankly exceeded my best expectations.”
Trudeau said the Liberals would listen to the concerns of Canadians and scrutinize the deal. However, he all but endorsed it.
“The Liberal party has always understood how important trade is and we will continue to stand for trade and for engaging with the world,” he said. “I look forward to seeing the details of the deal, but we go into it from a position of being resolutely — and consistently, I might add — pro- trade.”
The Canadian government has agreed to make what it calls “limited” concessions on its supply managed dairy and poultry sectors to allow more duty- free imports of products from TPP countries into Canada. But it has kept the pillars of the controversial supply management system intact.
Harper maintained the agreement on autos and parts would “clearly benefit our auto industry here at home.”
He said he would announce measures over the next few days to attract new auto investment and “to ensure the long- term stability and presence of assembly operations here in Canada.”
Auto parts makers worry they will lose business to low- cost Asian producers not part of the trade deal, such as China and Thailand.
Unifor, which represents thousands of autoworkers, assailed the deal, saying it would put an estimated 20,000 Canadian auto jobs at risk.
Auto parts manufacturers and Unifor have raised concerns about the agreement allowing Japanese auto companies to export cars to North America with significantly less North American content than is currently required.
The agreement will potentially increase Canadian exports in a wide variety of products and services, including beef, pork, canola, wine, spirits and seafood.
Canada will gain preferential duty- free market access or reduced tariffs in key TPP markets of Japan, Malaysia and Vietnam, where Canada currently faces high tariffs and no preferential access.
Harper said he expects the full text of the agreement to be released in the next few days, with signatures on the finalized deal early in the new year.