August 23, 2012

German Chancellor Merkel came to Canada last week to talk about it but we still don't know what went on behind closed doors. Other than the usual platitudes about how great the trade deal would be for Canada, we know few details of the Canada-EU Trade Agreement (CETA).

It matters because the paths of Kamloops and Europe meet at CETA. It's an unlikely intersection. What would a trade agreement between the world's largest economy and the Government of Canada have to do with little Kamloops?

Lots, as we will find out after it's too late. Unlike any other trade agreement, such as NAFTA, CETA would determine how cities spend their money - - funds designated for local economic, social, and environmental projects. CETA would prohibit policies that support local business and growers.

No wonder that 50 cities and local governments across Canada have passed resolutions against CETA. Although Kamloops is not one of them, city council's concerns were included in a resolution submitted by the Union of B.C. Municipalities. Apprehension crosses political boundaries. Even right-of-centre mayors such as Rob Ford of Toronto worry about local hiring quotas, food policies, and transit procurement contracts.

The intrusion of CETA exceeds that of interprovincial trade agreements such as the New West Partnership Trade Agreement (formerly TILMA) says Rob Duffy of the Columbia Institute. Even that trade agreement allows municipalities to employ "Buy Canadian" policies.

Never heard of CETA? That's because negotiations have left civic leaders and most Canadians in the dark. Provincial and federal negotiators have been sworn to secrecy. B.C.'s Minister of Jobs, Tourism and Innovation Minister Pat Bell told The Tyee: "Can't make any comment on CETA. We are bound by a confidentiality agreement with the federal government. Love to do it, but you'd be talking to a new minister if I did."

However, leaked documents indicate the direction in which the deal is going. The European Union wants sweeping access to Canadian procurement contracts including federal, provincial, municipalities, school boards, and other public bodies. No wonder they want some of the action when local governments alone spent over $120 billion on goods and services in 2011.

Local governments bought things such as buses, energy equipment, uniforms, food and office equipment, and paid for services like engineering, accounting, legal, energy conservation, construction, and infrastructure.

The ability to control spending is one of a few economic levers that local governments hold. Purchasing power allows governments big and small to "foster local or Canadian economic or sustainable development, facilitate innovation, promote social goals, support food security, or address local or Canadian environmental problems," warns Duffy.

All that could go down the drain of CETA if we are forced to allow EU companies to bid on contracts.

While CETA doesn't require privatization of public services, it allows a foot in the door that will be followed by privatization. If Kamloops were to mistakenly allow its public water treatment plant to be operated privately, for example, the city could never get it back.

It could happen. Hamilton, Ontario, foolishly experimented with the privatization of its drinking water and sewage treatment. After a decade of bad experiences including rising costs, failure to maintain infrastructure and even a major sewage spill, they decided to end their experiment with privatization. They would have been out of luck under CETA.

Steve Verheul, the lead Canadian negotiator for CETA, hopes that the deal will be signed by the end of the year. All done with Canadian eyes wide shut.


David Charbonneau is the owner of Thompson Studio
He can be reached at dcharbonneau13@shaw.ca