Let’s start with some questions. Freer Trade. Who is for it? Who is against it? Who was for it before they were against it – but may be for it again? And why does it matter? As for this last question…
The United States is in the enviable position of consuming, feeding or making fuel out of about 80% of what its agricultural producers grow and process.
Still, in 2022, U.S. farm exports were valued at $213 billion.
That is an export number that is very significant to the U.S. economy and relevant to farmers and ranchers to the tune of 20% of their income. It follows that agricultural exports and trade, in general, are similarly important to those who market equipment to those farmers and ranchers.
For Canada, the numbers and their attendant importance to the agriculture sector are even more compelling.
Canada is the 5th largest exporter of agricultural products in the world at over $80 billion per year or approximately half of all the ag products we raise and/or process.
Canada relies on export markets for half of its beef sales, 70% of pork sales, 75% of wheat, 90% of canola, and 95% of pulse crops.
In my old job, I would often site pulse crop numbers specifically to support a positive stance on trade. In any given year, Saskatchewan farmers were growing about 50% of total global exports in lentils and peas – and proportionately significant volumes in almost every other crop.
I would then say something like “Even if we love them, we cannot eat that many lentils or peas… and I don’t particularly want to eat any of the canary seed.”
We need to trade. We need strong agricultural trade. We need fairer and freer multilateral and bilateral deals – any-lateral trade deals.
This is true on both sides of the border but a more existential matter north of the 49th.
So, where do politicians and the major political parties stand on trade these days?
Well things have changed a bit in the last ten years or so.
It used to be a reliable truth over the last quarter of the 20th century and the early years of this one – that protectionism was a policy refuge of the left, unions in particular.
But a good portion of those on the right – populous conservatives have in recent times begun to sound cautionary notes and indeed strong opposition to ‘globalism’ as reflected in institutions such as the World Economic, World Health Organization and the United Nations.
The pushback intensified during the pandemic and has been fueled by a growing fatigue with wokeism.
We should be vigilant that this opposition and fatigue to various global policy organizations is not conflated with opposition to international trade and trade deals. This is especially true for those in the agriculture sector whom politicians look to for their views on trade policy and deals. Remember the influences wielded by the U.S. agriculture sector in the run up to the USMCA trade deal conclusion?
One can have serious concerns about these global efforts from organizations wishing to influence policy in countries around the world while still supporting fair and freer trade policy and deals. Canada, for example, is pursuing agreements with ASEAN countries on a multi-lateral effort and with Indonesia on a unilateral effort. Both of these agreements represent opportunities for Canadian farmers, and NAEDA customers.
But don’t take my word on it. Here’s a politician I have long admired, President Ronald Reagan, on the matter:
Yet today protectionism is being used by some American politicians as a cheap form of nationalism, a fig leaf for those unwilling to maintain America’s military strength and who lack the resolve to stand up to real enemies—countries that would use violence against us or our allies. Our peaceful trading partners are not our enemies; they are our allies. We should beware of the demagogues who are ready to declare a trade war against our friends—weakening our economy, our national security, and the entire free world—all while cynically waving the American flag. The expansion of the international economy is not a foreign invasion; it is an American triumph, one we worked hard to achieve, and something central to our vision of a peaceful and prosperous world of freedom.
After the Second World War, America led the way to dismantle trade barriers and create a world trading system that set the stage for decades of unparalleled economic growth. And in one week, when important multilateral trade talks are held in Montreal, we will be in the forefront of efforts to improve this system. We want to open more markets for our products, to see to it that all nations play by the rules, and to seek improvement in such areas as dispute resolution and agriculture.
Trade is not only still a good thing. It is economically essential.
Plus – I am just not interested in eating that many lentils.
Article Written by Brad Wall, an advisor to the North American Equipment Dealers Association
Brad Wall was the 14th Premier of Saskatchewan. He is the Principal of Flying W Consulting, a partner in the CW Cattle Co. Ltd, and serves on various private, public, and non-profit boards. In addition, Mr. Wall is also a valued advisor to the North American Equipment Dealers Association.
