Policies promoting local job opportunities could be lost.
by SGNewsStaff
A trade deal with the European Union could damage Manitoba's manufacturing sector, says a new report from the Canadian Centre for Policy Alternatives' Manitoba office.
"CETA: Constraining Manitoba's Economic Prospects and Policy Options", by John Jacobs and Lynn Fernandez, details the ways in which the Comprehensive Economic and Trade Agreement (CETA) could reinforce the province's growing reliance on exports of primary commodities and imports of EU manufactured goods.
“The agreement could take away the province’s ability to promote cutting edge value-added industries,” says the report’s co-author John Jacobs.
The report indicates that Northern Manitobans could lose millions of dollars in potential local job creation and business opportunities under the terms the EU is demanding.
"The EU is keen to get its hands on the provincial energy sectors," says Ferenandez. "The Manitoba government has asked for exemptions for Manitoba Hydro, but ultimately the provincial government is not in the driver's seat and we can't be certain whether, for example, Hydro's capacity to give preference to businesses and workers in Northern communities will be preserved."
According the authors, five to eight billion dollars is at stake, in purchases giving preference to local and provincial goods and services.
The study also flags the potential loss of policy sovereignty. Investors could sue provincial and municipal governments for lost profits should health, safety and environmental regulations limit the profitability of EU corporations.
Under NAFTA's most favoured nation clause, many of the provisions of CETA will be extended to US and Mexican corporations.
Some of the report's findings are that CETA:
-curtails regional and local economic development options and advanced manufacturing;
-restricts capacity to derive benefits from mining and natural resources;
-would increase the costs of public services and curtail the ability of the province to deal with issues such as climate change, economic volatility and new technologies;
-would increase the costs of pharmaceutical drugs in Manitoba by up to $81 million annually; and
-could expose provincial and municipal governments to litigation from foreign corporations.
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