Winnipeg Free Press - PRINT EDITION

U.S. jabs Canada on trade deal

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LINCOLN, Neb. -- Nebraska Gov. Dave Heineman is optimistic Canada and the United States can put aside some differences and hammer out a historic trade deal.

The long-running trade relationship between the two countries is too important to sacrifice as negotiations continue toward a 12-country Trans-Pacific Partnership trade deal.

"I certainly hope the U.S. and Canada can come to a mutually beneficial agreement," said Heineman, the longest-serving governor in the state's history. "I believe the relationship between the U.S. and Canada is very strong and we want it to continue to be very strong. We hope we can work out these agreements where both countries are satisfied."

The U.S. government, however, said Canada is playing hardball on agriculture. The U.S. administration's trade representative provided an update Thursday on negotiations toward the Trans-Pacific Partnership trade agreement.

"On Canada, it's the only country in TPP that has not yet given us a market-access offer on agricultural issues like dairy and poultry," Michael Froman told a congressional panel.

"We are pressing them to do so, because those are important priorities for us... We're addressing their priorities in a number of ways, and we want them to come to the table as part of an overall package."

The TPP is a proposed trade agreement between Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. Its goal is to enhance trade and investment among the dozen nations as well as create jobs, spur economic growth and promote innovation.

Canada's supply-management system sets limits on the production and importation of certain products, potentially limiting choices and bargains for consumers while protecting farmers.

Canada has already promised to relax some of the import limits on European cheese in its recently concluded trade agreement with the European Union, and the Americans appear to expect similar concessions. In the U.S., Congress is responsible for approving trade deals. The Senate has failed to provide the administration with so-called fast-track authority to get a deal, but lawmakers are being kept in the loop on negotiations.

Froman's appearance before a House of Representatives committee contained only brief references to Canada. He was asked far more questions about major trade irritants with Japan, which have prompted questions on whether that country might be excluded from a deal.

But a New Jersey lawmaker did express concern about Canadian courts striking down patents for U.S. pharmaceuticals in what he called an abusive interpretation of patent laws.

"Those decisions in Canada in recent years... go against our neighbour's international commitments," said Rep. Bill Pascrell.

"Canadian courts have ruled that certain pharmaceutical patents, including many belonging to companies in my home state of New Jersey, are invalid due to what I believe to be an inappropriate interpretation of international patent standards. This policy is designed to benefit their manufacturers at the expense of our own."

Froman said protection of patents is before the courts in both countries, and is also being addressed at the bargaining table: "It's something we're monitoring very closely -- it's part of TPP as well."

At one point, another congressman applauded Canada for taking steps to protect film copyright with anti-camcording laws and expressed hope that other countries in the partnership might adopt similar measures.


Geoff Kirbyson is touring America as part of a U.S. government program called U.S.-Canada: Partners in Economic Development.


-- with files from The Canadian Press

Republished from the Winnipeg Free Press print edition April 4, 2014 B13

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