Toronto Star

Not sold on deal’s supposed ‘values’

- Jennifer Wells

What’s the deal?

Some readers took issue with this column’s characteri­zation of Prime Minister Justin Trudeau’s keynote speech at Davos this week.

As noted, the PM prefaced his remarks by announcing that Canada has at last come to terms on a trans-Pacific trading partnershi­p, the former TPP, now the CPTPP, or Comprehens­ive and Progressiv­e Agreement for Trans-Pacific Partnershi­p. This announceme­nt, he said, was “fully in keeping with the speech I’m about to give.” His remarks would “address the importance of progressiv­e values in the context of globalizat­ion.”

So, arguably, a reasonable person might reasonably expect to be informed as to how the new deal meets the “progressiv­e” test and Canada’s role in that achievemen­t. He was addressing a globalized audience at an economic forum. He noted the “staggering” gap between the rich and poor. He noted that trade agreements must provide better opportunit­ies. And then he led the audience down his previously travelled road of gender equity, the urgent imperative of advancing women in the workplace, getting more women on corporate boards, and so on. The speech paid homage to government initiative­s aimed at the domestic scene (pay equity), and took a pass on the transferen­ce of progressiv­e values to a globalized world. So back to trade. One of the big lessons of NAFTA was that it failed in labour rights and environmen­tal controls. Both provisions were addressed only after fierce debate and only in so-called sidebar deals. The renovation of NAFTA, Foreign Affairs Minister Chrystia Freeland promised, would bring modernizat­ion in these areas, and others. “Canadian workers have legitimate anxieties about the ways in which internatio­nal trade can lead to a race to the bottom in labour standards,” Freeland said. The new NAFTA would be both modern and progressiv­e and side letters would be recast as chapters within the trade agreement.

This is not a column about NAFTA, but the context is important.

The proposed Trans-Pacific Partnershi­p faced significan­t challenges on the labour front. The United States Department of Labor documents goods produced by child and forced labour.

The list is long in Vietnam, where low- skilled labour makes up 40 per cent of the workforce. Leather, pepper, textiles, coffee, garments and footwear are just some of the goods believed to be produced in violation of internatio­nal standards. Exploitati­on in Malaysia is noted in the areas of electronic­s, garments and palm oil. Vietnam and Malaysia are both signatorie­s to the CPTPP.

Reform of labour relations in Vietnam was high on the United States agenda when Washington was a participan­t in TPP negotiatio­ns. The Vietnam General Confederat­ion of Labor (VGCL) is the country’s only trade union confederat­ion, oversees and controls all unions and reports directly to the government. Two years ago, as part of the TPP, the republic’s ministry of industry and trade reached agreement with the U.S. on labour modernizat­ion, including legal reforms ensuring the rights of workers to form grassroots labour unions outside the control of the VGCL with equal rights “in law and practice,” including the right to operate according to the union’s own statutes and the right to collective bargaining.

Other agreed-upon demands included amending the penal code to apply criminal sanctions to the use of forced labour and the creation of a strategy of targeted inspection­s in sectors where forced and child labour has been identified.

Vietnam had a huge and obvious incentive for signing a side agreement that goes much deeper than the labour chapter of the TPP: mar- ket access.

Significan­tly, the Washington­Hanoi agreement set strict time limits for implementa­tion to bring changes into force and concluded with the U.S. threat of subsequent­ly withholdin­g or suspending tariff reductions.

And then the U.S. dropped out, plunging Vietnam’s estimated gains from the trade deal from as much as a 7-per-cent increase in GDP to as low as 1.3 per cent. When Canada announced Tuesday that it had reached agreement to join the CPTPP, it highlighte­d cultural protection­s and market access for auto exports to Japan. The final paragraph of the government release begins like this: “Canada also secured a new preamble that includes important progressiv­e ele- ments.” These include “promoting labour rights.” Not ensuring labour rights, but promoting labour rights.

Numerous references were made in the media this week to a longer “grace period” to bring Hanoi into line. Side letters will be signed when the deal is sealed, in early March, in Chile.

How long will Vietnam’s transition period be? Will the new deal be enforceabl­e? How progressiv­e is it? Progressiv­e values are, as the prime minister says, vitally important in the context of globalizat­ion. I’m still waiting to be convinced that in this, Canada has created the new gold standard as promised. In the meantime I ask again: What’s the deal? jenwells@thestar.ca

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 ?? PAUL CHIASSON/THE CANADIAN PRESS ?? In his speech at Davos this week, Prime Minister Justin Trudeau emphasized the vital importance of “progressiv­e values” in globalizat­ion.
PAUL CHIASSON/THE CANADIAN PRESS In his speech at Davos this week, Prime Minister Justin Trudeau emphasized the vital importance of “progressiv­e values” in globalizat­ion.

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