Ottawa—Getting legislation through the multi-step approval process in Parliament usually takes many months and sometimes longer. Now that Mexico and the United States have ratified the new North American trade deal, the focus is on how quickly MPs and Senators will approve CUSMA.
Although a wide array of agrifood and other organizations are calling for quick approval, the minority status of the Liberal government in the Commons complicates the approval process.
Grain Growers of Canada (GGC), the Canadian Federation of Agriculture, the Canadian Agri-Food Trade Alliance and the Canadian Produce Marketing Association are among the groups calling for quick passage.
GGC Chair Jeff Nielsen urged all the parties to support quick passage of CUSMA because it will mean “Canadian farmers can begin experiencing the benefits of stable, reliable trade with the U.S. and Mexico.” They “need a stable market to succeed and to grow.
“Canadian grain growers — and any Canadian who relies on trade with our closest partners—needs tariff-free access as soon as possible,” he said. “If we don't join the USA and Mexico in ratifying CUSMA, growth opportunities with our largest trading partners will be stunted.
“The success of Canadian agriculture is not a partisan issue. We urge all parties to work together to see the legislation through.”
Errol Halkai, CF Executive Director, said ratifying CUSMA will restore predictability and effective rules with our largest trading partners. However, he reiterated CFA's concern the deal sets an unwelcome precedent in regional trade agreements.
“By agreeing to limit exports of Canadian dairy products to parties outside the jurisdiction and scope of CUSMA, Canada has limited its ability to self-determine its trade policy,” he said. “We cannot imagine another instant where Canada would agree to these circumstances.
“Given that a large portion of Canadian farmers rely on export markets for their livelihood, the implications of this is troubling.” The government should never agree to such restrictions in any future trade deal, he said.
CAFTA issued a joint statement with the Business Council of Canada, the Canadian Chamber of Commerce and Canadian Manufacturers & Exporters calling for quick passage of the legislation to ratify the trade deal.
“We call on all Parliamentarians across party lines to support swift efforts to ratify and implement CUSMA. After three years of uncertainty, it's time to restore long-term predictability to North American supply chains.
“We call on MPs and Senators from all parties to make the ratification and implementation of CUSMA a top priority,” the statement said. “Above all else, the agreement restores much needed certainty to our most important trade and investment relationship.
“This is about certainty and North America's ability to compete with the world as an integrated market. It is time for Canada to follow suit and ratify.”
CPMA urged quick approval of CUSMA because “Since the implementation of the previous NAFTA in 1994, Canadian fresh fruit and vegetable exports to Mexico and the U.S. have increased by approximately 396 per cent.”
President Ron Lemaire said, “This growth is indicative of the importance of tariff-free trade and the integration of our marketplace within North America and within the fresh produce industry.”
An integrated North American produce supply chain is an important tool in ensuring that Canadian consumers have a consistent and diverse supply of fresh fruit and vegetables year-round, he said.
CUSMA won't come into effect until the first day of the third month after Parliament approves the implementation bill. The extra time is needed to allow the three countries to develop uniform regulations that used to interpret the terms of the deal.
Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.