Dispute Prompts N.L. to Back Out of Trade Negotiations

This article was last updated on April 16, 2022

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N.L. has revealed that its dispute with the federal government regarding the $400-million fisheries fund is still unresolved. The province is supposed to share cost in the fund with $280 million from the feds in exchange of for forfeiture, under the Canada-European Comprehensive Economic and Trade Agreement (CETA), of the province’s ability to enforce minimum processing requirements on fish destined for Europe.

Whereas on the other hand, the federal government claims that the fund will be distributed when affected individuals and industry businesses are able to show damages as a result of the change. Meanwhile, the province is insisting that demonstration of harm was never part of the agreement. Making a clear threat, Hatchings stated that in case the dispute over the fund isn’t settled in the coming weeks, the province will also refrain from supporting CETA. So far, the province has already backed out of discussions of the Trans Pacific Partnership, Canada-Japan Economic Partnership Agreement, the Trade in Services Agreement and Canada’s place in the World Trade Organization.

Business and Rural Development Minister, Darin King mentioned that “Ottawa has the jurisdiction to negotiate trade agreements for Canada as a nation, but within many of those trade agreements, there are also items that fall under provincial jurisdiction which means they require provincial consent. For example, the minimum processing requirements.” Hutchings added that “if we’re going to have interactions with our federation, in the federation, we’ve got to be able to hold fast to those items that we’ve negotiated.”

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