Liberals vow to scrutinize trade deal
As Obama presses for speedy OK of TPP, Ottawa taking second look at financial assistance promises
MANILA, PHILIPPINES— U.S. President Barack Obama is pressing Canada and other trade partners to finalize a sweeping Pacific trade deal, but the new Liberal government is signalling that it won’t be rushed as it reviews the fine print of the agreement — and the more than $4.3 billion in compensation promised to sectors that could be hurt.
Ottawa got a serious nudge Wednesday from Obama, who cheered the trade deal, known as the Trans-Pacific Partnership, as one of the most progressive ever but conceded its politics could be “difficult.”
The government review received the support of Canada’s dairy farmers and auto sector, two industries that could be affected by the deal.
Prime Minister Justin Trudeau and International Trade Minister Chrystia Freeland took part in a lunch here Wednesday with their counterparts from the 11 other nations involved in the trade deal and listened as Obama urged speedy passage of the pact.
“Today, we’re going to discuss the road ahead to ensure that TPP is enacted in each of our countries as swiftly as possible. Obviously, execution is critical after we have arrived at the text,” Obama told his fellow leaders.
But Freeland said later that the 6,000page agreement is under review, along with the more than $4.3 billion in aid that had been promised by the Conservatives to Canada’s auto sector and dairy industry to compensate for the potential fallout from the sweeping trade deal.
Trudeau told the gathering that Canada is pro-trade, but since this deal was hammered out by the Conservatives the new Liberal government would take some time to review the details.
“The TPP was not negotiated by our government. It was negotiated by the previous government and our job now is to carefully review the text and to consult with Canadians and with stakeholders about it,” Freeland told reporters.
Up for review is the $4.3B in aid promised by the Tories to the auto sector and dairy farmers, International Trade Minister Chrystia Freeland says.
“We met with very good reaction and understanding from our TPP partners.”
When he announced the pact in October, two weeks before election day, then-prime minister Stephen Harper called it the “most ambitious trade agenda in Canadian history.”
The proposed agreement would reduce or eliminate barriers in a wide range of sectors and could lead to more Canadian exports of pork, beef, canola, high-tech machinery and a variety of other products. But it’s a deal with some potential downsides. Foreign cars will be allowed without tariffs, as long as they have 45-percent content from the TPP region. And foreign suppliers would have limited access to the Canadian dairy market. As a result, the Conservative cabinet endorsed a plan to spend $4.3 billion over the next 15 years to protect Canadian farmers from the impact of the agreement.
During the election campaign, Harper promised a further $1 billion to the auto sector.
Freeland said the Liberals are taking a second look at the financial assistance promised by Conservatives but endorsed the idea of helping sectors that could be hurt by deal.
“We’re reviewing now what the compensation plans will be,” Freeland said. “It would be very inappropriate right now for us to commit to specific packages given that we’re actually reviewing the agreement overall.”
The Dairy Farmers of Canada say they have been assured by the new Liberal government that they have nothing to fear from a review of the compensation package.
“We have talked to the government this morning and they have told us not to be worried. It is part of their due diligence that the government is undertaking this thorough review of the deal itself. They told us that we will be consulted when they are ready to review the compensation package,” Isabelle Bouchard, director of communications and government relations, said in a statement.
“We look forward to being part of the process and provide our input on the package to the government.”
Canada’s auto parts industry said it was not so much concerned about being compensated for any market share losses under the TPP as it was about seeing the government develop the right strategies to keep and attract more automakers. Auto parts makers were also pleased to hear the new Liberal government is resisting pressure from Obama to push the deal through quickly, said Flavio Volpe, president of the Automotive Parts Manufacturers Association.
Obama said the Pacific trade deal was a progressive deal that includes protections for workers, prohibitions against child labour and environmental protections
“This is the highest standard and most progressive trade deal ever concluded. This is not only a good deal economically; it also reflects our common values,” the president said.
He commended the leaders for “extraordinary leadership” in reaching a deal, adding, “this is not easy to do.
“The politics of any trade agreement are difficult. The fact that everyone here has stepped up and made some hard decisions that are going to pay off for decades to come, I think is testimony to the vision that was reflected,” he said. With files from Dana Flavelle