(Globe & Mail)
Former trade minister David Emerson on what Stephen Harper was negotiating in Europe this week, why it might only be the start and whether the seal hunt is more trouble than it's worth
Adam Radwanski, globeandmail.com: Mr. Emerson, thanks for taking the time to help shed a little light on what the Prime Minister has been doing this week in Europe. It strikes me, given the potentially massive changes to our trade policy that could ultimately result from Mr. Harper's talks with the EU, that there's been surprisingly little focus on what's being discussed (other than the seal hunt). Should Canadians be paying more attention to what's going on there?
David Emerson: There is no doubt that Canadians should be paying close attention to the government's attempts to move trade policy forward more aggressively. Canada has always been, and always will be, a trading economy. Today 80 per cent of our exports go to the U.S., and with protectionism on the rise we absolutely must build deeper relationships across both the Atlantic and Pacific.
The EU is a market of roughly three quarters of a billion people, with 27 countries' markets at various stages of development and with enormous potential for trade and investment linkages to Canada. With Europe, we are also dealing with relatively stable and advanced democracies. If we can strike a comprehensive trade deal expeditiously, it strengthens Canada's position relative to the U.S. and builds on a market where we have begun to see significant growth and success.
Adam Radwanski: There have been rumblings about knocking down trade barriers between Canada and the EU for years, but rarely have they amounted to much. What's changed?
David Emerson: Probably the biggest change has been the willingness of provinces to consider being bound by the obligations such a deal may involve.
Procurement practices of sub-national governments have been major barriers to the success of past negotiations. Policies limiting mobility of skilled and educated people are another example.
Quebec, for example, has moved from a historically reluctant jurisdiction to a strong advocate of a deeper economic relationship with Europe.
We still are likely to have problems dealing with agriculture to any substantial degree; both the EU and Canada are strongly protectionist and timid with respect to certain agricultural interests. Canada will also have to show increased flexibility when it comes to protectionist limits on foreign ownership and investment in certain sectors.
I do think, perhaps wishfully so, that Canadians are more informed than ever about the economic perils of protectionism. Let us hope our leaders continue to lead and take advantage of the opportunity.
Read the complete interview here.
