Saturday, May 13, 2006

Playing politics

For all the talk of Harper being nothing more than a Bush puppet, let there be no doubt that he's more than willing to oppose policies supported by not only the U.S. but also every other state in the WTO and much of Harper's western base...as long as it helps his chances in Quebec. From Randy Burton:
Last week in Geneva, the 149 countries at the table tried to reach agreement on how to deal with so-called "sensitive products."

These are products that various countries want to maintain tariffs on in order to protect their domestic farmers. For example, Japan wants to protect its beef industry, India wants to protect vegetable oil and the European Union wants to protect pork. Around the world, the most "sensitive product," -- that is, the most protected -- is chilled and frozen meat, which is Canada's second-largest export...

With one notable exception, every country agreed that tariffs (on sensitive products) should be cut and the quota expanded. This was a modest step but at least it amounted to some progress in liberalizing agricultural trade.

Horror of horrors for free traders, Canada refused to go along. Alone among 149 countries, our trade negotiators declared that we want to maintain the over-quota tariff as is...

Canada appears to have sacred cows it wants to protect behind a high tariff wall, namely dairy, poultry and eggs. Those industries do not want any reduction there because they fear increased imports from the U.S.

Angling for a majority government, the last thing Prime Minister Stephen Harper wants to see is anything that might upset his electoral chances in Quebec, which of course is home to the largest concentration of dairy and egg producers in Canada, not to mention the most militant farmers in the country.
But lest there be any doubt, it isn't only interests abroad who will be frustrated by the outcome of the Cons' stubbornness, as much of Harper's rural western base appears to have been counting on greater access to markets around the world:
(If no change is made to the sensitive product rules,) Canadian exporters will be prevented from getting into foreign niche markets. For example, Canadian producers would like to sell wheat and beef to Japan, pork to Europe and a whole range of other products around the world.

Without progress on tariff reduction, most of those markets will remain effectively closed to Canada. In other words, Canada is shooting a lot of its own farmers in the foot. They are demanding answers, but to no avail.
In a sense it's fortunate that the trade issues have become public before Harper passed some of his other "market-based" reforms such as dismantling the Wheat Board. If there was ever any doubt in the minds of western Canadians, it should be all the more obvious that the Cons' plans in government are based strictly on political gain. And if struggling farmers who have formed a large part of the Cons' historical support get tossed under the bus, that's an acceptable loss to Harper in order to win over protectionist votes in Quebec.

Of course, those same farmers will have an opportunity soon to decide whether they want their interests represented by someone so willing to turn his back on them. And with any luck, disillusionment with the realities of Con government will do far more to undermine Harper's quest for a majority than his pandering to Quebec will do to move it forward.

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