The Chronicle Herald | Feb 5 2008
Commons debate on free trade urged
Recent deal with Europe criticized
By TOM PETERS Business Reporter
The shipbuilding industry wants the federal government to hold true to its word and bring free-trade deals to the House for debate and a vote before they are ratified.
Ottawa recently ratified a free-trade agreement with the European Free Trade Association and the shipbuilding industry says that deal will hurt the industry.
MP Peter Stoffer said Monday the free-trade issue will be brought before the federal shipbuilding caucus on Wednesday. The caucus plans to issue a letter to Trade Minister David Emerson calling on him to honour the government’s promise to debate and vote on trade deals in the House of Commons.
"Mr. Emerson said in the House that any trade deals would be discussed and voted on in the House of Commons . . . and in 2004 at a national press conference Stephen Harper said all trade deals must come to the House for ratification," said the NDP member for Sackville-Eastern Shore.
However, he says the government appears to be backtracking on its promise.
"Now we have a letter from (Foreign Affairs Minister) Maxime Bernier, sent to NDP House Leader Libby Davies, that says we (the government) still retain the right to ratify these deals without Parliament’s consent," Mr. Stoffer said.
The major concern for shipbuilders is that under a free-trade agreement with the European countries the 25 per cent tariff that protects Canadian shipbuilders from foreign-built vessels coming into Canada will be phased out.
Norway, one of the four countries in the European Free Trade Association, has a heavily subsidized shipbuilding industry and sees Canada as a potential market for its ships. The Canadian shipbuilding industry says it would create an unfair competitive advantage.
Local shipbuilding representatives have also jumped into the fray.
Jamie Vaslet, business agent for Local 1, Marine Workers Federation, and Karl Risser of Halifax, president of the CAW Shipbuilding, Waterways and Marine Industry Council, have also written stern letters to Ottawa.
"It is with great disbelief we see that your government signed the European free-trade agreement, completely disregarding the fact that this will be a devastating blow to shipbuilding in Canada," Mr. Vaslet said in comments to Mr. Emerson.
"We in the shipbuilding industry don’t mind competitiveness, as long as it’s on a fair playing field. Unfortunately . . . this will not be the case once you phase out the little protection we have . . . with the tariffs on foreign ships being brought into Canada," he said.
Mr. Vaslet said "members our local represented at the Halifax shipyard believe a Conservative government has done exactly what was expected of them: sold Canada’s shipbuilding industry in another bad trade deal without even consulting, let alone debating, this with the three other political parties in the House of Commons."
Mr. Risser, who directed his comments to Prime Minister Harper, said government leaders have professed the importance of shipbuilding in Canada, which he felt would lead to national industry strategies "to ensure that we have a viable shipbuilding industry (and) not to sign trade deals, such as EFTA, which will further devastate this strategically important industry."
"I urge you to take this opportunity to revitalize an industry that provides highly skilled, well paying jobs, often in areas of economic depression."
Mr. Stoffer says the all-party caucus, which also has industry representation, wants a complete analysis of the free-trade deal. It wants to know all the particulars, including a cost analysis, plus what advantages and disadvant-ages it might have for Canada.
He says the caucus wants government to bring the deal to the House for debate and a vote. If the vote goes against the deal "and they go ahead and ratify, even though the House of Commons said no, then that would be a big political mess."