Trans-Pacific Partnership: Industry, provincial reaction is mixed

Canadian dairy farmers greeted with mixed feelings the news that Canadahas preserved its supply management system whileconceding 3.25 per cent of its future milk production to an Asia-Pacific market under a new trade agreement with 11 other countries.

Known as the Trans-Pacific Partnership, Canada has signeda tentative deal that would create a 12-country trade bloc with the U.S., Mexico, Japan, Vietnam, Australia, Peru, Malaysia, Brunei, Chile, New Zealand and Singapore representing 40 per cent of the global economy.

While the concessions will result in lost revenue for Canadian farmers, the government immediately announced a series of measures amounting to a $4.3-billion compensation package to minimizethe effects on the dairy, poultry and egg industry.

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"Like my fellowdairyfarmers, I am disappointed that additional access was granted in this deal,"said Wally Smith, president of the Dairy Farmers of Canada.

"However, we recognize that our government fought hard against other countries' demands, and [has]lessened the burden by announcing mitigation measures and what seems to be a fair compensation package, to minimize the impact on Canadian dairy farmers and make up for cutting growth in the domestic market.

"We have come a long way from the threat of eliminating supply management," Smith said in a news release on Monday.

'Important gains'

"One of the mostimportant gains for Canada in TPP is that it will open access in the Japanese market, the world's third-largest economy, saidPerrinBeatty, the president and chief executive officer of the Canadian Chamber of Commerce.

While the final text will not be out for some time,Beatty said that on balance Canadian businesses would come out ahead under this deal, though some sectors would be affected more than others.

"We welcomethe news that a Trans-Pacific Partnershipdeal was attained, while recognizing that all negotiating countries had to make important concessions that willchange the economic landscape," saidBeattywhosegroup representssome200,000 employers.

"The real question is how will the governmentcomplement the agreement with other measures it'sputting in place to support our industries."

Beatty urged the next Parliamentto ratify the trade deal in a timely manner.

'Athreat to Canada's auto industry'

Unifor,Canada's largest union in the private sector,denounced the Conservatives for signing a deal with a "dramatic" reduction inthe automotive content rules to 45 per cent for core parts and 40 per cent for other parts, bothbelow currentNorthAmerican Free Trade Agreement provisions.

"The Harper Conservatives pledged that they would not sign a deal that was a threat to Canada's auto industry and yet, I fear they have done exactly that," saidJerryDias, the national president forUnifor, whichrepresentsmore than 310,000 workers, including 40,000 in the auto sector.

"Ultimately, this is a bad day," Dias said in an interview with CBC News. "You can't mess around with content levels and then somehow say it's not going to cost jobs"

Diassaid the union would have a better idea of how many jobs would be lost under this deal once more details are made public,but it estimates the loss at more than 20,000 a figure the government has rejected.

Interest groups have opposing views on TPP

9 years ago

Duration 2:08

Perrin Beatty, the President and CEO of the Canadian Chamber of Commerce, and Unifor National President, Jerry Dias have differing views on the Trans Pacific Partnership.

Benefits for Saskatchewan

Saskatchewan Premier Brad Wall welcomed the agreement in principle as an opportunity for agricultural producers in the provinceto access key Pacific markets and Japan specifically.

"The TPP will encourage major growth and investment in our value-added agriculture sector through better access to these markets for our processed products, such as canola oil and meal, malt barley, beef and pork," Wall said in a news release.

Wall urged on all the federal party leaders to support the deal after the election on Oct. 19.

"It would be disastrous if Canada were to pull out now and leave Canada and Saskatchewan on the outside looking in when it comes to selling our exports to these countries.

Ontario calls forauto sector support

The Ontario government, which had been calling on Ottawa to be more transparent about its negotiations, said ithad a number ofconcerns overthe concessions made public today, but that ultimately itneeded more details from the federal governmentto understand the implications for different business sectors.

"Some sectors of the auto industry may benefit from the TPP, said Ontario ministersBrad DuguidandJeff Leal in a joint statement. "However, Ontario remains concerned about several key concessions regarding the auto sector,in particular, the tariff reduction schedule and the rules of origin for autos and parts announced this morning."

Ontario is calling on the federal governmentto help its auto sector with "a robust, large-scale, grant-based transition adjustment program."

"Additionally, we remain concerned about the concessions made on supply management, and the potential for them to have a negative impact on the integrity of the supply management system, " the Ontario ministers said.