Local farmers, businesses divided over new Canada-E.U. trade deal

Fosterholm Farms owner Clifford Foster shows off fresh apples at his Belleville farmers’ market stand Thursday morning. They’re some of the fruits and vegetables he now sells after switching from dairy to produce – a move he says was prompted by competition from outside markets. Photo By Brendan Burke/QNet News

By Brendan Burke

BELLEVILLE – Canada’s freshly-inked trade deal with the European Union is being touted by its partners as a consumer-friendly pact poised to spur economic growth, diversify markets and put money in the pockets of Canadians. But not everyone is sold.

“I would expect the deal to have a negative effect on the dairy farmers and I am not convinced that any of our farm sectors would benefit from this,” John Thompson, the president of the Prince Edward Federation of Agriculture wrote in an email to QNet News. 

The Comprehensive Economic Trade Agreement (CETA) – signed by Prime Minister Justin Trudeau on Oct. 30 after years of stalled talks between previous governments – is a free-trade agreement between Canada and the E.U. that will see 98 per cent of all tariffs on traded goods dropped – opening the door for an unprecedented exchange of goods that will mean cheaper prices for Canadians. While the federal government has hailed the move as a “progressive” deal that will produce jobs, strengthen the middle class and add billions to Canada’s annual grossing, CETA has drawn criticism from some who say the blockbuster deal will hurt certain sectors in the country.

Heavily-regulated sectors like dairy production have traditionally faced little competition, benefiting from a quota-based system that has helped ensure productivity – and prosperity. But with a post-CETA prospect of increased dairy products entering Canada, that will likely change. 

Belleville’s farmers’ market – and the vendors like Fosterholm Farms that operate from the city’s Market Square – could see the biggest impact from CETA locally. Photo By Brendan Burke

Clifford Foster, a longtime vendor at Belleville’s farmers’ market, isn’t convinced of the deal’s benefits either. Foster, owner of Fosterholm Farms in Picton, said fears of a CETA-like deal, coupled with underwhelming profits, pushed him to switch from dairy to produce production three years ago.

For local farmers still in the dairy business, Foster empathized with the challenges they now face.

“I feel sorry for those people,” he said.

While farmers and the groups that represent them aren’t buying the proposed benefits of CETA, local businesses – and the bodies that oversee them – are more receptive to the deal, according to Quinte West Chamber of Commerce manager Suzanne Andrews.

“Overall, most businesses are pleased to see CETA has been approved,” she said, adding that the move gives residents access to previously untapped European markets.

“It opens up a huge market for goods.”

While Andrews is optimistic about the agreement’s impact on a local level, she acknowledged the drawbacks associated with the deal and encouraged increased oversight to counter unwanted economic effects.

“Some sectors could be hurt by it. This is where we need the government to support these sectors in their transition into a more competitive market,” Andrews said.

With an economy based on free-trade, Belleville Chamber of Commerce CEO Bill Saunders says CETA makes sense for Canada – and Quinte. Photo By Brendan Burke/QNet News

Bill Saunders, chief executive officer of Belleville’s Chamber of Commerce, told QNet News that all free-trade is encouraged, but he understands the deal is a “double-edged sword” for dairy farmers who face new competition, but benefit from participating in a major market. Ultimately, Saunders said the new deal fits Canada’s economic model.

“Canada is a free-trade country. Our economy is based on resource development and trade. Any time we have the opportunity to further this development, we should.”

Saunders added that Belleville’s Chamber of Commerce is confident that the economic benefits of the international partnership will be felt across the country – and at home.

“We believe it’s good for the Canadian economy and our local economy,” Saunders said.

Belleville farmers’ market-regular Judy Bridle says trade deals are important, but middle ground between farmers and consumers must be found. Photo By Brendan Burke

While Canada’s signing of CETA has divided businesses and food producers, some local consumers, like Belleville market-regular Judy Bridle, say the the deal brings both positives and negatives.

“I think it’s important to strive to keep our economy strong. Trade deals are good, but not at the expense of the people,” she said. Bridle added that a compromise needs to be met so that the trade deal will be a “win-win” for both producers and consumers alike.

With European parliament votes on the deal still pending, the landmark Canada-E.U. trade agreement is expected to take effect in early 2017.