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

Bachrach rejects calls for police action against demonstrators

Skeena-Bulkley Valley MP says only way out of crisis is “true nation-to-nation” talks

Coast Mountain College appoints a new president

The promotion came from within the school

Coastal GasLink pipeline investor committed to closing deal despite protests

Developer TC Energy Corp. — formerly TransCanada Corp. — is to remain the operator of the $6.6-billion pipeline

College finds a new president

Promotion comes from within

Blending traditional art with realistic life-form

Haida Gwaii artist, Josh Davidson on display at ANBT

Pipeline dispute: Tories put no-confidence motion on House of Commons agenda

Conservatives say they have no confidence in the Trudeau government to end the rail blockades

B.C.’s soda drink tax will help kids lose weight, improve health, says doctor

Dr. Tom Warshawski says studies show sugary drinks contribute to obesity

A&W employees in Ladysmith get all-inclusive vacation for 10 years of service

Kelly Frenchy, Katherine Aleck, and Muriel Jack are headed on all-expenses-paid vacations

B.C. mom’s complaint about ‘R word’ in children’s ministry email sparks review

In 2020, the ‘R’ word shouldn’t be used, Sue Robins says

B.C., federal ministers plead for meeting Wet’suwet’en dissidents

Scott Fraser, Carolyn Bennett says they can be in Smithers Thursday

Province shows no interest in proposed highway between Alberta and B.C.

Province says it will instead focus on expanding the Kicking Horse Canyon to four lanes

First case of COVID-19 in B.C. has fully recovered, health officer says

Three other cases are symptom-free and expected to test negative soon

Budget 2020: Weaver ‘delighted,’ minority B.C. NDP stable

Project spending soars along with B.C.’s capital debt

B.C. widow ‘crushed’ over stolen T-shirts meant for memorial blanket

Lori Roberts lost her fiancé one month ago Tuesday now she’s lost almost all she had left of him

Most Read