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Canadas trade policy must focus on NAFTA  and also far beyondAdd to ...

duties on Canadian softwood lumber or Bombardier aircraft, where a WTO fight brought by Canada could get bogged down in years of litigation while Canadian exports suffer. It will take prodigious political will among like-minded governments to reform the WTO system to resolve trade disputes faster and more effectively, weeding out inefficiencies and delays. Canada and the United States have a direct interest in that exercise. As with NAFTA, this should be at the top of Canada’s trade policy agenda. Now let’s look west, across the other ocean to the Trans-Pacific Trade Agreement. All participants in the TPP exercise were lured to the table and convinced to sign on because of preferential access to the U.S. market. With Mr. Trump abandoning the TPP agreement, many, myself included, thought that resurrecting the deal among the remaining 11 countries was a dream. However, the Canada West Foundation, which is becoming more active on international trade matters, just issued a report making the economic case for a TPP agreement without the United States. Admitting that the overall GDP gains for Canada in the absence of U.S. participation could be modest, the report nonetheless points out that certain sectors of the Canadian economy – agrifood for example – will benefit under an 11-country TPP deal, mainly from enhanced access to the Japanese market. There are imponderables in trying to quantify the benefits of a trans-Pacific agreement without the United States, as the Canada West report admits.

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