Commons considers Bloc bill to end dairy concessions in trade deals

When Canadian trade negotiators begin talks with the United Kingdom next year on a permanent bilateral trade deal, their hands could be tied when it comes to offering any future dairy, egg or poultry concessions if Parliament passes a new private member's bill that saw its first hour of debate on Tuesday.

Bloc Qubcois MP Louis Plamondon's legislation, Bill C-216, would amend the Department of Foreign Affairs, Trade and Development Act to state that the minister "must not make any commitment ... byfuture trade treaty or agreement"that would increase the tariff rate quota (TRQ) applicable to dairy products, poultry or eggs, or reduce the tariff applicable to those goods when they are imported in excess of that quota.

Canada protectsits agriculture supply management system for these commodities by carefully controlling access to its domestic market. Only small quantities of imports are allowed under strict international quotasTRQs withhigh tariffskeeping any extra imports above and beyond these quotas from being cost-competitive.

But the three major trade deals implemented by the Liberal government over the last four years the Comprehensive Economic and Trade Agreement (CETA) with the European Union, the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) with 10 other Pacific Rim markets and, most recently, the revised North American Free Trade Agreement (the new NAFTA) all offered new accesstoCanada's domestic market,among other concessions required to land these deals.

"Something very important for milk and egg and poultry production is given away as a token and nothing comes back for those producers, so we say in the law that this should not happen anymore," Bloc Leader Yves-Franois Blanchettold CBC Newslast week.

"[The Liberal government says,] 'Oh, we will will compensate you.And you know what? They don't."

No word on NAFTA compensation

A few weeks before the 2019 general election, Agriculture and Agri-Food Minister Marie-Claude Bibeauannounced compensation for dairy farmers to cover their anticipated losses from CETA and CPTPP, which were already both in effect at the time. That financial assistance rolled out last winter.

Help has also been pledged to compensate for the even larger concessions in the new NAFTAbut nothing further has been announced. American farmers gotaccess to a greater share of Canada's startingJuly 1 andthe new NAFTAalso dictates how dairy ingredients can be priced and slappedstrict export limitson sensitive global commoditieslike skim milk powder and baby formula.

Blanchetslammed Finance Minister Chrystia Freeland for taking so long to present her fall economic updateand said her spending planmust includethe NAFTA compensation farmers anxiously anticipate.

"This money is owed, is expected[and] is terribly late," he said.

Freeland announced Monday that she'll present herupdate on Nov. 30.

Bill could block British demands

If Plamondon'slegislation garners enough support to pass in this Parliament before the next election, the first trade negotiation it could affect is talks between Canada and the United Kingdom to reach a permanent, comprehensive deal to liberalize their bilateral trade post-Brexit.

On Saturday, prime ministers and trade ministers from both sides announced they'd reached agreement on a transitional dealto offer continuity for businesses by continuing most of the terms of the CETA past Jan.1, when it was otherwise set to expire because the U.K. is no longer an EU member.

The government won't release details of exactly what's in that transitional agreement until the legal text is ready, which usually takes another two to four weeks. But Doug Forsyth, Canada's lead negotiator in the talks, confirmed previously that the British were seeking additional tariff-free access to Canada's cheese market.

"I want to be very clear that there is no new market access for cheese here in this transition agreement," International Trade Minister Mary Ng told CBC News at Saturday's announcement.

But yesterday at the Commons trade committee,Ng's parliamentary secretary, Rachel Bendayan, saidthat language in the transitional deal commits both sides to returning to the table to reach what Prime Minister Justin Trudeau has called a "bespoke" bilateral deal by 2024.

That means the British could make another play to get more U.K. cheeses into Canada.

"By 2024, Canada will have transferred 18 per centof its domestic dairy production to dairy farmers in other countries... that will displace our domestic products on the grocery shelves," said Pierre Lampron, the president of the Dairy Farmers of Canada, in a statement sent to CBC News last weekend. "Another concession as part ofa trade agreement with the U.K. would have been dramatic for the industry.

"Officials had told us there would be no further concessions, and they followed through, but we must remain vigilant as this is a provisional agreement."

Future vote result unclear

Based on remarksmade during Tuesday's first hour of debate, it appearsConservative MPsmay not support this bill, althougha party spokesperson has yet to comment on it or confirmhow the Official Opposition willvote.

"If this bill passes, we can be sure that potential trade partners will target supply management right off the bat and counter with their own protectionist measures," Conservative MP Luc Berthold said in French during the debate. "This is like drawing the other side's attention to a specific negotiation issue that could well force Canada to agree to new concessions..."

"We do not believe that BillC-216is a good bill to protect supply management and Canadian producers," Berthold said.

In an email to CBC News, party spokesperson Melanie Richer said New Democrats agree with the Bloc that compensation has been slow to roll out, adding that"the Liberals added insult to injury by bringing CUSMA into effect several weeks earlier than promised, robbing Canadian dairy farmers of a full year to prepare for the change in their local markets."

"New Democrats have consistently decried the damage done to Canada's dairy sector in successive trade deals and we have said we would not do the same," Richersaid."This bill would add legal force to that position."

Youmy Han, a spokesperson for Trade MinisterNg, saidthe government is still studying the bill andwould not say how Liberal MPs might vote.

"We have been clear: our government will not grant any further market access in our supply-managed sectors in any future trade negotiation," Han said.

MPs will vote on the bill at second reading afterits second hour of debate, expected later this winter.