Quotulatiousness

June 28, 2012

What did Canada give up to get “2nd class seating” in the TPP negotiations?

Filed under: Cancon, Economics, Pacific, USA — Tags: , , , , — Nicholas @ 10:27

Michael Geist on the Canadian concessions to get a seat at the kiddy table for the Trans Pacific Partnership free trade negotiations:

…the benefits for Canada are hard to identify. The price of admission was very steep — Canada appears to have agreed to conditions that grant it second-tier status — and the economic benefits from improved access to TPP economies are likely to be relatively minor since we already have free trade agreements with four of the ten participants.

Given those conditions, why aggressively pursue entry into the negotiations?

[. . .]

Given Canada’s late entry into the TPP process, the U.S. was able to extract two onerous conditions that Prime Minister Stephen Harper downplayed as the “accession process.” First, Canada will not be able to reopen any chapters where agreement has already been reached among the current nine TPP partners. This means Canada has already agreed to be bound by TPP terms without having had any input. Since the TPP remains secret, the government can’t even tell us what has been agreed upon. [Scott Sinclair reports that the commitment is even broader, covering any chapter where provisions have been agreed upon]

Second, Canada has second-tier status in the negotiations as the U.S. has stipulated that Canada will not have “veto authority” over any chapter. This means that should the other nine countries agree on terms, Canada would be required to accept them.

This condition could be used to stop Canada from joining forces with another country on a tough issue during the late stages of the negotiation. For example, Canada and New Zealand both have copyright terms that last for the life of the author plus an additional 50 years. The U.S. has proposed that the TPP mandate a term of life plus 70 years. While Canada and New Zealand might be able to jointly block the extension, the U.S. could pressure New Zealand to cave on the issue and effectively force Canada to accept the change.

Getting rid of our government-mandated monopolies in the agricultural sector (a good thing) is not going to be worth the price of adopting American-style copyright legislation.

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