MEDIA RELEASE
For Immediate Release
March 31, 2011

Atlantic Canada should reject Harper's false trade promises;
Job-killing Canada-EU trade deal worth half what Harper said, according to new report

Halifax – The people of Nova Scotia should reject Stephen Harper's false promises on free trade with the European Union in light of a new report showing the agreement would add only $6 billion to Canada's GDP – half what the previous government has promised – while putting the sustainability of Atlantic fisheries and the jobs of dairy farmers at risk, says the Council of Canadians.

"Any modest gains Nova Scotia might get from the EU lowering tariffs on processed fish would be undercut by counter-demands that we let EU boats into our ports, remove ownership restrictions on processing plants, and put our dairy farmers out of work," says Angela Giles, Atlantic regional organizer with the Council of Canadians. "Harper needs to answer why he's ready to sell out jobs and risk over-fishing the Atlantic region for a measly $6 billion."

Giles and the Council of Canadians are responding to news reports today about a new economic assessment of the proposed Canada-EU Comprehensive Economic and Trade Agreement (CETA), produced on behalf of the European Commission by a private firm. The assessment estimates GDP growth for Canada from a successful deal of between 0.29% and 0.36%, or about $6 billion. That amount is less than half what the Harper government has promised CETA would be worth to Canada since negotiations begain in late 2009.

The same economic assessment raises questions about the impact an EU deal will have on Atlantic fisheries. The report says while there would be some gains for processed fish producers in Canada by lowering EU tariffs, the EU would gain significantly from "lowering the domestic ownership requirement for the granting of commercial fishing licenses." The report adds the primary environmental risk "is that the CETA could lead to over-fishing in certain parts of the Atlantic and increased reliance on aquaculture."

For dairy farmers, the report predicts that for Canada, "increased access to EU dairy imports is likely to negatively impact domestic producers," and that, "to the degree that this leads to a removal of supply-management, the impact on Canadian dairy producers will be significant."

"The impacts of CETA will be felt beyond our fisheries and farmers. Public services, municipal governance, environmental policy and the sustainability of our health care system are at stake," says Giles. "Why is Harper rushing to finish a deal with the EU that will fundamentally reshape the Canadian economy, all for a few billion dollars. It's a complete sell-out."

A recent Canadian assessment of CETA's intellectual property chapter, commissioned by the Canadian Generic Pharmaceutical Association, predicted a $2.8-billion cost increase to public and private drug plans. The cost to Nova Scotia alone would be $95 million. Given the costs, a $6-billion shot to Canada's overall GDP in the long haul makes the EU deal hardly worth the effort, says the Council of Canadians.

This week, the organization called on the federal government to stop the planned April 11-15 round of trade negotiations with the EU because of the federal election. The organization is urging provincial and territorial governments, who are at the negotiating table, to use this opportunity to be open with the public about what public policies and public services they are putting on the table.

"As the potential benefits of an EU deal disappear, the need for provinces and territories to be completely transparent with the public is indisputable. Stop the negotiations and make CETA an election issue," says Giles.

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For more information:

Dylan Penner, media officer, Council of Canadians:  (613) 795-8685, dpenner@canadians.org
Angela Giles, Atlantic regional organizer, Council of Canadians: (902) 422-7811, agiles@canadians.org
Stuart Trew, trade campaigner, Council of Canadians: strew@canadians.org

Twitter: @CouncilofCDNs