NORTHEAST — The new trade agreement with the United States and Mexico provides stability, but the Northeast’s MP said the government made too many concessions for little gain.
“While the signing of the new [United States–Mexico–Canada Agreement] is an economic necessity, Trudeau’s promise of a better trade deal for Canadians fell very short,” wrote Randy Hoback. “The USMCA does not put the Canadian economy in a better trading position than the former NAFTA agreement.”
The agreement was signed Oct. 1. It has yet to be ratified by any of the three countries’ legislatures.
Hoback is unhappy the new agreement doesn’t remove the tariffs on softwood lumber, steel and aluminum. The agreement does prevent the Americans from slapping tariffs on Canadian-produced automobiles.
The USMCA will allow US dairy producers to sell a quantity of dairy products that’s equal to 3.6 per cent of the Canadian market before any Canadian tariffs come into force. The supply management system will remain.
Automobiles must have 75 per cent of their work done in Canada, US or Mexico, up from 62.5 per cent. By 2020, 30 per cent of the work must be done by workers earning $16 per hour. That increases to 40 per cent by 2023.
Copyright will extend from the creator’s life plus 50 to the creator’s life plus 70 years. Drugs have to be on the market for 10 years instead of eight before generic versions can be produced.
The agreement lasts for 16 years and must be reviewed after six years
Todd Lewis, the president of the Agricultural Producers Association of Saskatchewan, said USMCA is a positive move for the majority of the Saskatchewan agriculture industry, which is very export-oriented.
“I think it’s important that it’s been signed just for clarity on the trade file. There’s lots of trade between Saskatchewan and the United States, it’s our major export market so it’s good to have a deal signed up.”
He said there were concerns about the dairy changes, but that they weren’t a surprise, given the American’s public position on the matter.
Scott Moe, the province’s premier, agreed with Lewis.
“It’s been a part of the last three major trade agreements we’ve made and I don’t think it’s surprising it’s part of this one.”
The premier is pleased with the agreement, but not happy the steel tariffs remain. For him though, USMCA could mean opportunities for agriculture, especially the agri-value industry.
“For instance, the largest imported product from Montana to the province of Saskatchewan is wheat, of all things, where we add value to that product and then send it on,” he said. “We have the ability to continue to have that syngenetic relationship.”
Moe reminded the media that 55 per cent of Saskatchewan’s exports go to the US, while 85 per cent of its imports come from there.
“Preserving that type of trading environment with that large of a partner is of crucial importance to the future of our province.”
Hoback wrote the USMCA will be judged by how Canada benefits.
“Disappointingly, it is clear that for all of the concessions Trudeau gave to President Trump, Trudeau was unable to win any from Trump in return,” he wrote. “I and my Conservative colleagues will hold Justin Trudeau to account for every single line of this agreement.”
