Comment: We need trade agreements that work

A top priority of the incoming government should be ensuring trade deals are respected

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Reading Time: 3 minutes

Published: November 3, 2021

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Protectionism and isolation are seeing a resurgence and the federal government needs to push back.

We have had an election and now government priorities are being set and ministers who will implement the plan are being selected. What would you tell them if you had the chance?

The pork sector is hoping that policy-makers are focusing on securing international access for our products. Trade is critically important to Manitoba’s hog farmers. Ninety per cent of the pigs grown under our care are destined for international markets in one form or another.

The world goes through trade policy cycles. The negative impacts of protectionism and isolation result in periods of openness when barriers are torn down and people and goods move a bit more freely. For Canada, the late 1980s through the early 2000s was a period of openness. We negotiated numerous free trade agreements, beginning with the U.S. and then Mexico. Over the years we’ve signed deals with the EU (CETA) Pacific nations (CPTPP) and additional pacts with nations in Latin America, Asia and Europe.

Now, the pendulum is swinging the other way. Protectionism and isolation are back in vogue. This is dangerous and we need the federal government to push back. Countries that have signed agreements to open trade are finding new non-tariff barriers to block imports. Calls for protectionism have been boosted by the COVID-19 pandemic, with policies of self-sufficiency becoming a key part of politicians’ talking points.

Canadian farmers need more than trade agreements. We need leadership to ensure that these agreements deliver.

CETA is one agreement that is not living up to expectations. Almost all sectors of Europe’s agri-food industry have seen a significant increase in exports to Canada since CETA has been signed. Despite initial optimism, there has not been an equivalent gain for Canadian farmers. This is because the European Union (EU) wins Olympic gold when it comes to finding new barriers to trade.

Canada needs to use the World Trade Organization (WTO) and the dispute processes in agreements like CETA and CPTPP to actively challenge non-science-based trade barriers. Europe’s refusal to accept our scientifically equivalent food safety standards for meat should be confronted more determinedly. Canada should not be willing to accept without dispute labelling laws that are thinly disguised barriers to our food. We need to stop being so polite.

Canada also needs to dedicate new resources into fighting protectionism. We should be posting new technical, science-based experts at our embassies abroad to proactively deal with trade irritants before politicians turn them into trade barriers. Having a science-based rapid response team available in key markets would go a long way to making sure that farmers realize the benefits that were expected.

And then there is China. China is not a market that Canada can afford to ignore or be shut out from. For example, China is both the world’s largest consumer and producer of pork. Its buying decisions are a key driver of international markets and a significant factor in the price received by Manitoba’s hog farmers. However, our trading relationship is difficult and is not functioning on predictable science-based rules.

We don’t have a trade agreement with China. However, China is a member of the WTO and should be held accountable to its trade obligations. Securing stable and predictable trade with China will also require new resources. Pork producers are calling for this increased focus to start with the appointment of an assistant deputy minister, who is dedicated to fostering agriculture and food trade, to our embassy in Beijing.

The world has entered a new age of protectionism. Unscientific and unjustified policies to limit Canadian exports are costing farmers millions.

There are no quick solutions to this challenge, but farmers need a government that is willing to dedicate additional resources to securing market access and launch a more strategic approach to combating trade barriers, with Canadian farmers and exporters as partners.

Cam Dahl is general manager of the Manitoba Pork Council.

About the author

Cam Dahl

Cam Dahl is president of Cereals Canada, which represents the full value chain of Canadian cereal crops, including farmers, grain handling, processing and exporting firms, and crop development and seed companies.

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