CIIT Committee Report

The Canada-EFTA Free Trade Agreement is yet another one of this government’s hastily concluded bilateral trade agreements which highlights a piecemeal approach to trade that lacks a coherent, fair trade vision and policy.  The NDP has major concerns, which are left unaddressed by this committee, especially with regards to the agriculture and shipbuilding sectors and is disappointed that the agreement’s weaknesses have not been addressed.  The NDP pushed to have the treaty studied by this committee in the first place and is disappointed but not surprised that the agreement’s weaknesses have been overlooked. Destructive legacies such as the softwood lumber sell-out have eroded the NDP’s confidence in the ability of this government to defend the best interest of Canada through trade agreements.

The NDP wishes to point out nevertheless that the member nations of the EFTA have strong social-democratic traditions and are ideal trading partners for Canada.  Though the EFTA members have not joined the European Union, they have provided an excellent model for building a strong working relationship with their neighbouring countries.  Their policies are an example for Canada as to how to strike a good balance between trade and national sovereignty without having to sell out the latter.  The NDP supports building a productive and mutually beneficial trading relationship with the EFTA on a fair trade basis.

However, a major concern in the CEFTA stems from provisions regarding shipbuilding.  The NDP believes that the current state of Canada’s shipbuilding industry is directly related to the absence of a vigorous industrial development policy by successive federal Liberal and Conservative governments.  It is precisely this type of policy that allowed Norway to become the world-class player that it is today and this is precisely what the federal government failed to do.  Canada has the largest coastline in the world, yet it has no strategy for its shipbuilding industry.  This situation is absolutely unacceptable. When the tariffs come down in 15 years, Canada’s industry will be unable to cope with Norwegian competition.  

A case in point is that even those from the business community who have a vested interest in supporting the acceleration of the EFTA, such as the Canadian Shipowner’s Association, justify their support on the basis that Canada has forever has lost its ability to build ships.  The NDP does not share their negative assessment; it believes that with the proper support from the federal government, the domestic shipbuilding industry could be rapidly up and running.  All that is missing is the federal government.

The NDP is in full support of the position of Andrew MacArthur, Member of the Board of Directors of the Shipbuilding Association of Canada, and the CAW who powerfully made their case before this Committee:

1. The shipbuilding sector must be excluded from this agreement.
2. The federal government should immediately help put together:
1. structured financing facility and
2. an accelerated capital cost allowance for the industry.

Another area of concern for the NDP was pointed out by Terry Pugh, Executive Director of the National Farmer’s Union.  The provisions within the agreement concerning agriculture defer to the World Trade Organization principles and dispute mechanisms, which will have a very negative impact on supply management by weakening Canada’s position. The NDP strongly opposes the WTO negative stance on supply management.  Supply management should be part of the architecture of fair trade, to help ensure food supply and food safety around the world and is key to the model upon which cooperative agricultural trade should be built.