It appears the Canadian Wheat Board and the supply managed groups are in some way holding the rest of the producers hostage because Canada, it seems like it at least, is entering trade negotiations with one hand tied behind its back.
Maybe I’m wrong, but that is what it looks like to me. Here is what Alex Binkley has to say on the matter. Earlier this year, the federal government took well-deserved heat from business and farm groups that were disappointed Ottawa hadn’t exerted any real effort to get Canada included in the Trans-Pacific Partnership trade negotiations.
They blamed fear over possible ramifications to the dairy and poultry marketing systems for Ottawa’s reluctance to become actively involved in the Pacific trade talks. Government spokesmen didn’t bother to refute the criticism, even though a Pacific accord could rival the under negotiation free trade agreement with the European Union in importance.
Sitting out the Pacific talks doesn’t make much sense because of the enormous potential of Asian markets.
The United States has plenty of trade protection measures for its farmers but it’s front and center in the negotiations. There were suggestions that New Zealand, which views Canada as a competitor, was party to blame for our being left on the sidelines.
But the real issue had to be finding an accommodation between the export-oriented sectors and supply management so we can pursue trade deals without one hand tied behind our backs. The issue has been with us for a decade but we haven’t come to grips with it.
The best we can manage so far are sending Canadian observers to talks such as the round held in Peru in August looking to see if we could make any progress in bi-lateral consultations.
Grain Growers of Canada President Doug Robertson appears ready to keep the pressure on Ottawa. “With over 90% of farmers dependent on export markets or prices for their farm gate income, trade liberalization continues to be an important focus of our organization. Previously, we were deeply disappointed Canada was excluded from the Trans-Pacific Partnership. We are glad the government is exploring the possibility of fixing the situation.
“Branching out into new markets in Asia through the TPP represents a great opportunity for Canadian farmers,” he adds. “There is the potential to expand access for canola and wheat, as well as the domestic feed market with greater exports of beef and pork.”
Canada has free trade agreements with several Latin American countries and is working on its Asian partners. For most of them, supply management will be no more important than it is in the World Trade Organization talks. In fact, many countries have concerns about their farmers that will parallel Canada’s protective approach to dairy and poultry.
But there’s a lot to be gained in other sectors and that’s what we should focus on.
A recent report from the Asia Pacific Foundation says Canada is at risk of being shut out of many countries because we don’t place enough importance on Southeast Asia beyond China and India. Vietnam, Thailand, Indonesia, Malaysia, Singapore and the Philippines are promising markets we’re overlooking.
