Is Justin Trudeau ready to navigate the Trans-Pacific Partnership? Can he get the United States to pay attention to our softwood lumber situation?

Is Justin Trudeau ready to navigate the Trans-Pacific Partnership? Can he get the United States to pay attention to our softwood lumber situation?

BC VIEWS: Let’s get real about trade deals

Not participating in the Trans-Pacific Partnership is unthinkable for B.C., and even with it, our dependence on an indifferent U.S. remains

As the dust settles from Monday’s federal election, to paraphrase former prime minister Kim Campbell, it’s time to talk about serious issues again.

The Conservatives were hoping to make 2015 a free trade election, by signing onto the world’s largest trade deal at the end of July. But things didn’t go as planned at the talks in Maui, and Canada was among the players that walked away from the Trans-Pacific Partnership table at that time.

Then came five days of round-the-clock negotiations in Atlanta, with the U.S. pushing for a deal with Japan, Korea, Australia and other Pacific Rim powerhouses to normalize trade in 40 per cent of the world’s economy. And the TPP came together at the end of September.

Canada and B.C. essentially got what our governments were demanding, which was broad access to Pacific Rim markets and continued protection for nearly all of domestic dairy, poultry and egg markets. Also preserved was B.C.’s regulated market for logs and U.S. lumber sales.

The 200-kg gorilla of the TPP burst out in the heat of the election campaign, and the Kim Campbell rule was demonstrated again. Much of the discussion revolved around alleged secrecy, as the legal text of the deal won’t be out for some time to come. Protected farmers downed their pitchforks, counting their blessings, and their guaranteed compensation.

The NDP was forced to come out against the TPP, as it was against trade deals with the U.S., Mexico, Europe and others. But it’s getting lonely for them as the rest of the world moves on.

Within days of the TPP deal, the World Bank issued one of its periodic reports on “extreme poverty,” which it defines as an income of less than $1.90 U.S. a day. And 2015 is the first year when fewer than 10 per cent of the world’s people remain below this global poverty line, down from 12.8 per cent in 2012.

It’s easy for comfortable First World folks to protest conditions in running shoe and cell phone factories in India or China, but the graph of extreme poverty in those countries shows steep decline since 1990. Trade and technology are lifting up the poorest of the world.

For B.C., withdrawing from Pacific Rim trade is unthinkable. We worry a lot about lumber and copper and natural gas, but the TPP also opens up huge markets for services, where much of our economic future awaits.

The question for us is simple. Can we compete in health sciences, engineering, architecture, digital media, and information technology? Do we want to?

The TPP doesn’t change B.C.’s dependency on the United States. As with NAFTA, our vital lumber trade remains under a separate agreement, which expired on Oct. 12.

I’m told by federal and provincial officials that at this stage, the U.S. isn’t even taking our calls on the softwood lumber agreement, which Canada and B.C. want extended. Americans are preoccupied with the TPP and domestic politics.

After decades of bitter legal actions from the American industry, the latest softwood deal has provided a rough peace. It set a floor price for B.C.’s allegedly subsidized lumber exports, with an export tax collected by Canada when the price went below the floor of $355 per thousand board feet. That money went back into our government general revenue.

Higher prices meant no export tax was collected through 2014 and early 2015, and only five per cent as of September. Now that the agreement is expired, by default we have actual free trade in lumber for up to the next year.

Tom Fletcher is legislature reporter and columnist for Black Press. Twitter: @tomfletcherbc

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Okanagan Symphony Orchestra music director Rosemary Thomson in action at the podium. Photo by Lynda Miller.
Kelowna filmmaker gets funding to create new ‘Local Heroes’ documentary

The documentary will be focused on the director of the Okanagan Symphony Orchestra and Opera

Tom Ouchi is Respect Works Here’s Community Champion for January 2021. (Contributed)
Vernon Fire Rescue Services responded a structure fire on Valleyview Place Jan. 26, 2021, around 5 p.m. (Brendan Shykora - Vernon Morning Star)
Vernon firefighters knock down fully involved basement blaze

All occupants of the home got out safely but have been displaced, their home extensively damaged

Vernon Winter Carnival Cop John Fawcett, left, and Carnival director Paul Cousins sell raffle tickets for a 2019 Polaris Snowmobile, plus $1,000 worth of gear from BDM Motorsports.(Roger Knox - Morning Star)
Carnival ropes in fun amid Vernon’s winter/COVID blues

Plenty of virtual, and a few in-person, events planned for Feb. 5-14

Dr. Penny Ballem, a former deputy health minister, discusses her role in leading B.C.’s COVID-19 vaccination program, at the B.C. legislature, Jan. 22, 2021. (B.C. government)
B.C. holds steady with 407 new COVID-19 cases Tuesday

14 deaths, no new outbreaks in the health care system

Granite Creek Quad Ranch offers guided tours for quading, hiking and snowmobiling. Photo RDOS
Coalmont to get unique subdivision

Special zoning allows for eight homes on Quad Ranch

Rodney and Ekaterina Baker have been ticketed and charged under the Yukon’s Civil Emergency Measures Act for breaking isolation requirements in order to sneak into a vaccine clinic and receive Moderna vaccine doses in Beaver Creek. (Facebook/Submitted)
B.C. couple who travelled to Yukon for COVID vaccine ineligible for 2nd dose until summer

The province is ensuring those eligible to receive the vaccine get the second shot within 42 days

(File)
Mask dispute in court leaves Vancouver cop with broken leg

Man allegedly refused to put on a mask and resisted arrest

(Kraft Dinner/Twitter)
Kraft Dinner launches candy-flavoured mac and cheese just in time for Valentine’s Day

Sweet and cheesy treat will be here just in time for the cheesiest holiday of the year

Kelowna International Airport. —Image: Capital News file
Williams Lake medevac flight encounters drone at Kelowna International Airport

The airport is a no-drone zone to keep aircraft safe at all times

Oliver Fire Department. (Submitted photo)
Chimney fire spreads to roof of Okanagan home

Fire crews had to return twice to the house and go through the roof to find the flames

SAR crews worked late into the night Tuesday to rescue an injured snowboarder in North Vancouver. (Facebook/North Shore Rescue)
Complicated, dangerous rescue saves man in avalanche near Cypress Mountain

North Shore SAR team braves considerable conditions to reach injured snowboarder

A Cessna 170 airplane similar to the one pictured above is reported to be missing off the waters between Victoria and Washington State. Twitter photo/USCG
UPDATE: No sign of small plane that went down in waters south of Vancouver Island

Searchers out on both sides of border between Victoria and Port Angeles

Most Read