Dans cette édition:
- Brexit et implications pour le CETA
- Le Sommet des Trois Amigos à Ottawa
- Consultations du TPP
- Et autres nouvelles
- Suivez-nous @CAFTA_ACCA
Journal of the Canadian Agri-Food Trade Alliance
When Prime Minister Justin Trudeau hosts the leaders of Mexico and the United States at the Three Amigos Summit on June 29th, let’s hope that where Canada’s bread will come from is on the menu. With 90% of Canada’s farmers relying on international trade, Canada’s bread comes, and will come from export markets – markets that will bring a lot more value to Canada once the Trans-Pacific Partnership is ratified.
The bread I’m talking about is what will sustain our prosperity, our jobs and our communities. Canadians may not see it when they sit down for lunch, but more than 200,000 farms and hundreds of thousands of jobs in food and beverage processing depend on export markets. They are not just producing food for Canada and tables around the world, but providing bread for communities across the country.
Make no mistake about it. Trade drives Canada’s agri-food industry. More than 50% of the beef and 70% of the pork raised by Canadian farmers is exported. The same goes for 65% of our malt barley, 70% of our soybeans, 75% of our wheat, more than 90% of our canola and 95% of our pulses. Families all around the world enjoy what Canada’s agriculture and agri-food sector produces.
So why has Canada not committed to ratifying the TPP? As a trading nation, Canada could be demonstrating to our TPP partners the importance of international trade to growth, jobs and economic stability. Staying silent misses an opportunity for Canada to promote its own interests in expanding trade.
The TPP encompasses 12 countries, including Canada the US and Mexico, which collectively account for 800 million people and roughly 40 per cent of the global economy. While some argue that the North American Free Trade Agreement is good enough, few realize that eliminating tariffs and other trade barriers through the TPP is vital to the future viability of Canada’s trade dependent agriculture and agri-food sector.
Take Japan as an example, Canada’s third largest market for agri-food exports. A Japanese family eating Canadian food puts bread on our tables. Right now, Australian farmers have preferred access to the Japanese market because of Australia’s free trade agreement with Japan. The TPP will put Canada’s farmers on a level playing field so they can continue to grow food for generations to come, both for our local markets and for those in faraway places. Without it, Canada’s income from this high value market will dwindle – along with the jobs it supports.
And agricultural exports are not just important for rural areas. They’re important for cities too.
Take Toronto as an example. It’s the second largest and fastest growing food and beverage producing hub in North America. Three-quarters of the food produced on farms right outside the area are processed inside the region[i]. More people work in the city’s food and beverage sector than anywhere else in Canada, including those in food processing, research and development, life sciences and more. Their bread comes from trade too.
This is why we urge our Prime Minister to make sure Canada’s bread is on the menu at the Three Amigos Summit. The TPP is an incredible opportunity for the future of hundreds of thousands of people who work every day to put food on plates both here and around the world.
Brian Innes is the President of the Canadian Agri-Food Trade Alliance.
For further information, contact:
Executive Director, CAFTA
About CAFTA @CAFTA_ACCA
CAFTA is the voice of Canadian agriculture and agrifood exporters. CAFTA members represent over 90 per cent of Canada’s agriculture and agri-food exports, about $50 billion in exports annually. The economic activity created by CAFTA members supports hundreds of thousands of jobs in agriculture and food manufacturing. A significant portion of these jobs would not exist without competitive access to world markets.
CAFTA members represent farmers, producers, processors and exporters from the trade dependent sectors including the beef, pork, grains, oilseeds, sugar, pulse, soy and malt sectors.
Veuillez trouver ci-joint la dernière édition de Perspectives commerciales de l’ACCA.
N’hésitez pas à partager avec vos membres.
Please find enclosed this month’s edition of CAFTA’s Trade Insights.
Feel free to share with your membership.
The CETA is now (almost) finished
In late February, the Government of Canada and the European Commission completed the legal review of the EU-Canada Comprehensive Economic and Trade Agreement (CETA), including the portion covering investor protection. A resolution on a revised Investor State Dispute Settlement (ISDS) chapter was critical to arriving at an agreement, as the European Commission believed it was necessary to allow the CETA to pass in the European Parliament (EP).
L’Accord économique et commercial global (AECG) est maintenant (presque) achevé
À la fin février, le gouvernement du Canada et la Commission européenne ont achevé l’examen juridique de l’Accord économique et commercial global (AECG), y compris en ce qui concerne la portion controversée de la protection des investisseurs. Un compromis sur le chapitre du règlement des différends investisseur-État (RDIE) était essentiel pour arriver à un accord, ce que la Commission européenne jugeait nécessaire pour permettre à l’AECG d’être adopté au Parlement européen (PE).
Canada-EU Text Now Complete
On February 29, 2016, the European Commission and the Canadian Government announced that the legal review of the Canada-European Union Comprehensive Economic and Trade Agreement CETA [English] text has been completed. The European Commission and the Canadian Government also agreed to include a new approach on investment protection and investment dispute settlement in the CETA. Global Affairs Canada published the legally scrubbed text along with a link of FAQ concerning changes made to CETA’s investment chapter: http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/index.aspx?lang=eng
What’s next? The legal text now needs to be translated in French and the other 21 official languages of the European Union (EU). It will need to proceed to the EU Council where it will require unanimous support for signature then the EU Parliament where it is will be examined by the various committees before ratification. The text will only become legally binding after the entry into force of the Agreement.
In a statement, the Honourable Chrystia Freeland, Minister of International Trade said “we are confident that CETA will be signed in 2016 and will enter into force in 2017”.
On Parliament Hill
Appearance before the House of Commons Standing Committee on Finance
On Feb. 19, CAFTA was invited to speak before the House of Commons Standing Committee on Finance regarding the pre-budget consultations and considerations.
CAFTA’s executive director Claire Citeau, used this opportunity to reiterate to the Committee that, for Canada’s export-oriented agriculture and agri-food sector, being competitive in international markets is not a choice, but a requirement. Through this lens, Citeau addressed the two trade agreements that have taken centre stage for Canada–the Trans-Pacific Partnership (TPP) and the CETA.
Regarding the TPP, Citeau emphasized the importance of ratifying the agreement quickly to ensure that Canada does not fall behind our largest trading partners and fellow TPP signatories. Citeau also encouraged the Committee to advocate for a rapid completion of the respective legal and political processes pertaining to the CETA while continuing technical discussions to ensure that negotiated outcomes result in commercially viable market access for Canadian agri-food exporters when the CETA is implemented.
Appearance before the House of Commons Standing Committee on International Trade on TPP
On Feb. 25, CAFTA was invited to speak before the House of Commons Standing Committee on Finance regarding the TPP. Citeau shared a sample of CAFTA members’ projections of the opportunities seen to be provided by the TPP, explained the importance of the Japanese market for Canadian agrifood exporters and emphasized how the TPP secures access for Canadian farmers to certain markets and expands opportunities for our trade dependent sector.
As for the costs of not being in the TPP, Citeau asked the committee to consider two things: first the destructive experience of South Korea where a billion dollar market for Canadian agri-food exporters was cut in half as our competitors had their tariffs eliminated and we didn’t; second the importance the supply chains in the TPP region “the rules of origin are such that our companies would be excluded from supply chains, because our products would not qualify as TPP originating”.
The statements are available at cafta.org
In Case you Missed it….
With the House of Commons sessions now in full swing, the committees and committee work structures have now been announced going forward. Relevant to our sector, the International Trade Committee and Agriculture and Agri-Food Committees both released their membership and mandates this past month.
On the International Trade Committee, the membership is as follows:
o Chair: Liberal MP Mark Eyking
o Vice-Chairs: Conservative MP Randy Hoback and NDP MP Tracey Ramsey
o Members: Liberal MP Sukh Dhaliwal, Liberal MP Peter Fonseca, Liberal MP Linda Lapointe, Liberal MP Karen Ludwig, Liberal MP Kyle Peterson, Conservative MP Gerry Ritz, and Conservative MP Dave Van Kesteren.
The Committee will immediately begin studying the TPP, and will conduct at least six meetings on the topic–in addition to traveling across Canada holding hearings.
On the Agriculture and Agri-Food Committee, the membership is as follows:
o Chair: Liberal MP Pat Finnegan
o Vice-Chairs: Conservative MP Bev Shipley and NDP MP Ruth Ellen Brosseau
o Members: Liberal MP Pierre Breton, Liberal MP Francis Drouin, Liberal MP Alaina Lockhart, Liberal MP Lloyd Longfield, Liberal MP Joe Peschisolido, Conservative MP Jacques Gourde, Conservative MP Chris Warkentin.
The Committee is expected to explore the effects of the TPP on the Canadian agricultural industry.
• EU-Vietnam Text Published
On February 1st, 2016 Vietnam and the EU published the near-final text of the Vietnam-EU free trade agreement, signed on December 2015.
On tariffs, Vietnam has agreed to fully liberalize most of its sectors (over 99%) apart from a few highly sensitive areas (such as sugar and eggs). Vietnam will liberalize tariffs over a 10-year period and the EU will liberalize tariffs over a 7-year period.
Vietnam will also open its market for most EU food products, both primary and processed, allowing EU high quality exports to reach its growing middle class consumers: Wines and spirits will be liberalised after 7 years; Frozen pork meat will be duty free after 7 years, beef after 3 years, dairy products after a maximum of 5 years and food preparations after a maximum of 7 years.
Vietnam has a population of 94 million. Vietnam is also part of the TPP Agreement.
• SPS & TBT Notifications
The Government of Canada’s Market Access Secretariat has encouraged all trade associations and companies with export interests to review the World Trade Organization’s Sanitary and Phytosanitary (SPS) and Technical Barrier to Trade (TBT) notifications in order to advise AAFC regarding any arbitrary policy or restriction of trade. To receive these notifications directly, visit https://www.wto.org/english/tratop_e/sps_e/sps_mailing_list_e.htm to subscribe for SPS notifications; and https://www.wto.org/english/tratop_e/tbt_e/tbt_mailing_list_e.htm to subscribe for TBT notifications.
• APEC’s Trade and Tariff Regime
The Canadian Trade Commissioner’s Service has also released a new online tool to make trade with APEC economies easier. For more information, visit http://tradecommissioner.gc.ca/canadexport/0000177.aspx?lang=eng
As we head past the first 100 days of a new federal government, CAFTA will continue to prioritize opportunities to explain the importance of Canada’s export-oriented agriculture and agri-food sector and a liberalized trade agenda.
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