Canada's farm protections a remaining hurdle to major trade deal

Access to Canada's tightly controlled agriculture market is among the main remaining hurdles to a historic 12-country free-trade deal, the U.S. administration said Thursday.

The U.S. trade minister was asked at a public event what sticking points were keeping American negotiators busiest in the final stages of talks toward a Trans Pacific Partnership pact.

He mentioned two countries — Canada being one. Michael Froman appeared to be referring specifically to Canada's supply-management system, which sets prices for cheese, dairy and poultry and which limits foreign competition...

"Clearly, we have agricultural issues with Japan and Canada. We're making good progress with Japan, and hope to engage with Canada soon."

... the second overall obstacle is different national rules — related to intellectual-property rights, state-owned enterprises, labour and environmental rules. But he said there had been significant progress on those fronts, and said the main contours of the TPP appeared increasingly "crystallized" at a just-concluded meeting with fellow trade ministers in Australia...

The issue with Canada is partly a question of timing. Canada is apparently holding off on a detailed negotiating position — and waiting for other events to take shape before offering concessions.

Sources in both countries say Canada has been awaiting two developments: A meaningful agreement involving Japan, and for the U.S. Congress to grant the Obama administration fast-track negotiating authority.

Canada's ambassador to Washington says he's delighted when people accuse Canada of playing hardball...

[Gary Doer] said Canada can't put itself in the position of making a bunch of concessions, then having 535 Washington lawmakers disfigure the deal with a series of amendments.

Under the U.S. Constitution, Congress has authority over international treaties, not the president. However, it has in the past granted the president "trade promotion authority," a fast-track tool where lawmakers agree to a simple vote — yes or no — on a final deal, with no amendments allowed...

The supply-management system protects Canadian farmers but, on the downside for consumers at the grocery store, it can limit choices and increase prices. All major Canadian political parties profess to support the system.

In a speech to a Canadian audience Thursday, another U.S. cabinet minister urged greater access to agriculture markets as one of her country's priorities...

This has been excerpted from 31 October 2014 article by the Canadian Press.