Whether or not you’re a dairy producer, the BQ’s supply management bill should definitely be on your radar. It could impact Canada’s trade negotiations and raise risks for export-oriented industries.
The bill, sponsored by Luc Thériault (Montcalm) of the Bloc Québécois, proposes to bar the government from providing trading partners with access to our domestic dairy, egg and poultry market in trade negotiations. It enjoyed broad support at second reading in the House of Commons.
Aaron Fowler, chief negotiator for Agriculture and Agri-Food Canada during NAFTA renegotiations, warned the international trade committee about the potential impact of Bill C-282 earlier this month. He stated, “In some cases, the country may determine that they do not want to go forward with an FTA with Canada in the absence of Canada’s being able to make commitments in this sector.”
The bill is currently before the international trade committee. The first meeting took place in February and featured departmental officials. The next meeting is scheduled for Thursday and will include industry representatives from both the Dairy Farmers of Canada and the Canadian Agri-Food Trade Alliance.
The all-party momentum behind the legislation should worry stakeholders in every export-oriented industry, from steel and aluminum to forest products to agri-food. The time for representatives of those industries to engage and communicate their concerns is right now.
The strong political support for the bill is at least partly due to the correlation between defending supply management and winning elections in Quebec. Even Conservative leader Pierre Poilievre is milking it. He flipped his position to support the bill, despite voting against a similar BQ proposition in the previous Parliament. The main incentive for Poilievre, as well as members and leaders of other parties, is to protect and grow support in Quebec.
For that reason, there’s a political risk to speaking out against the bill. But there’s also a view among experts that the bill could potentially have a very negative impact on the government’s ability to negotiate new trade deals or to renegotiate pacts like CUSMA, which has a sunset clause. “It is my opinion that there was no deal that did not include market access commitments for dairy,” Aaron Fowler told the international trade committee.
There’s an important role for stakeholders to play in laying out the unintended consequences that could result from the bill. Liberal MP and international trade committee member Chandra Arya opened the door for stakeholder input. He expressed doubts over the bill and told The Hill Times that he would like to see “acceptable amendments” and would “focus on highlighting the concerns that various stakeholders may express.” The government is more likely to reconsider support for the bill if export industries paint the picture, both to legislators and the public, that Bill C-282 carries significant trade risks.
If a majority of elected representatives in the House aren’t receptive, Senate advocacy is another option. Senators aren’t elected and the government lacks a strong Senate caucus, so political pressure to support the bill won’t be as strong.
