By Aurélie Sarrabezolles
IAM Research Director for Canada
Introduction
Free trade agreements are supposed to stimulate the economy promoting jobs and allowing the different sectors of the economy to flourish. The Canada and European Union (EU) Comprehensive Economic and Trade Agreement (CETA)[i] is described by Global Affairs as “a high quality agreement that reinforces Canada’s fundamental relationship with the European Union. CETA covers all aspects of our broad trading relationship with the EU, including goods, services, investment, government procurement and regulatory cooperation. CETA will provide Canada access to the world’s largest market with more than 500 million people in 28 countries, with a combined GDP of $20 trillion.” During the multi-year negotiation process, labour has never been consulted during the negotiations held behind closed doors. It is interesting to note that the document was leaked and both the EU and Canada had to decide that the leaked version was the final version. This article is an opportunity to give ours members a quick update on that agreement and emphasize the harmful aspects to labour and workers’ rights.
A new political context: Brexit and the US presidential campaign
On June 23rd, 2016, 52% of British voters decided that they no longer wished to be part of the EU. The “Brexit” process will take two years to be implemented, but that major political shift was a shock to a lot of countries. Following Brexit, the current Liberal government is very hesitant towards negotiating the deal.[ii] Another interesting dynamic occurring is the anti-free trade rhetoric rising in the States. Both Donald Trump’s and Hilary Clinton’s position on free trade tend to be similar. Recently, the Democratic presidential candidate opposed the Tran-Pacific Partnership and other “bad trade deals”.[iii]
During the Federal election campaign, the Liberals have been very vocal on protecting the middle-class. With the ratification of CETA, we think that middle class jobs are at risk, impacting wages, benefits and worker protection. If you think that CETA will be a job creator for Canadians, as the Liberal government is promoting it, you’re wrong. At a time where Canadians, especially young and female workers, are struggling to find good jobs, it is time for the Government to put the interest of the public on the fore front of their policies over the global corporations.
A Trade Deal that needs to be modified
As pointed out by the Canadian Labour Congress (CLC) and the European Trade Union Confederation (ETUC), there are many issues that need to be addressed in the current version of the CETA agreement[iv]:
· Getting rid of the Investor-State Dispute Settlement (ISDS) mechanism. That central measure allows foreign investors to challenge, at private arbitration panels, local, provincial and federal governments, for any actions to protect the environment or public health or promote Canadian developments and jobs that might affect corporate profits. That mechanism should not exist in the first place because we already have an excellent court system in our country. Allowing the private sector to interfere with the institutionalized court system could lead to a disastrous outcome. It is anti-democratic and it contravenes the rule of law.
· Enhancing labour rights
· Building in review
· Protecting public services
As for the aerospace sector, as pointed out before in a previous article, while it does not directly affect the 2009 Canada/EU air transport open skies agreement, CETA will put pressure on our aerospace sector, already facing heavy government-supported competition from Europe.
Conclusion
Unless Canada is willing to modify that secretive deal, CETA will be added to the long list of unfair trade agreements and will have a significant impact on worker’s rights, our court system and our democracy. We need to fight back and debate on that important issue, dismantle the myth of globalization and oppose CETA.
