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    Canadian Government Establishes Two-Tier Approach for Trade Talks: Insiders and Everyone Else

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    Wednesday May 08, 2013
    As the future of the proposed Canada - European Union Trade Agreement becomes increasingly uncertain - the EU has been unwilling to compromise on the remaining contentious issues leaving the Canadian government with a deal that offers limited benefits and significant costs - the Trans-Pacific Partnership Agreement (TPP) is likely to emerge as the government's new top trade priority.

    The TPP has rapidly become of the world's most significant trade negotiations, with participants that include the United States, Australia, Mexico, Malaysia, New Zealand, Vietnam, Japan, and Canada. There is a veil of secrecy associated with the TPP, however, as participants are required to sign a confidentiality agreement as a condition of entry into the talks.  Despite those efforts, there have been occasional leaks of draft text that indicate the deal could require major changes to Canadian rules on investment, intellectual property, cultural protection, procurement, and agriculture.

    My weekly technology law column (Toronto Star version, homepage version) notes the Canadian government has adopted several measures to guard against leaks by departmental officials. According to documents obtained under the Access to Information Act, a November 2012 email to government officials noted that their access to TPP texts was conditioned on "Secret" level clearance, an acknowledgement that all texts are watermarked and can be traced back to the source, and confirmation that no sharing within government is permitted without prior approval.


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    Canadian Government Establishes Two-Tier Approach for Trade Talks: Insiders and Everyone Else

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    Tuesday May 07, 2013
    Appeared in the Toronto Star on May 4, 2013 as Canada's Two-Tier Approach to Trade Talks

    As the future of the proposed Canada - European Union Trade Agreement becomes increasingly uncertain - the EU has been unwilling to compromise on the remaining contentious issues leaving the Canadian government with a deal that offers limited benefits and significant costs - the Trans-Pacific Partnership Agreement (TPP) is likely to emerge as the government's new top trade priority.

    The TPP has rapidly become of the world's most significant trade negotiations, with participants that include the United States, Australia, Mexico, Malaysia, New Zealand, Vietnam, Japan, and Canada. There is a veil of secrecy associated with the TPP, however, as participants are required to sign a confidentiality agreement as a condition of entry into the talks.  Despite those efforts, there have been occasional leaks of draft text that indicate the deal could require major changes to Canadian rules on investment, intellectual property, cultural protection, procurement, and agriculture.

    The Canadian government has adopted several measures to guard against leaks by departmental officials. According to documents obtained under the Access to Information Act, a November 2012 email to government officials noted that their access to TPP texts was conditioned on "Secret" level clearance, an acknowledgement that all texts are watermarked and can be traced back to the source, and confirmation that no sharing within government is permitted without prior approval.

    While the government tries to stop potential leaks, the newly obtained government documents reveal that the Department of Foreign Affairs and International Trade has established a secret insider group with some companies and industry associations granted access to consultations as well as opportunities to learn more about the agreement and Canada's negotiating position.

    Those documents indicate that the first secret industry consultation occurred weeks before Canada was formally included in the TPP negotiations in a November 2012 consultation with telecommunications providers. All participants were required to sign non-disclosure agreements.

    Soon after, the circle of insiders expanded with the formation of a TPP Consultation Group created as part of the trade talks in New Zealand in December 2012. Representatives from groups and companies such as Bombardier, the Canadian Manufactures and Exporters, Canadian Agri-Food Trade Alliance, and the Canadian Steel Producers Association all signed a confidentiality and non-disclosure agreement that granted access to "certain sensitive information of the Department concerning or related to the TPP negotiations." 

    This is not the first time DFAIT has tried to establish a secret insiders group that is granted preferential access to proposed treaty information not otherwise available to the public. During the Anti-Counterfeiting Trade Agreement negotiations, the department planned for a similar insider group - called a Trade Advisory Group - that initially included representatives from the music, movie, software, and pharmaceutical industries.  The plan was scuttled only after the department's intention became public.

    While the need for business insight as part of trade talks is understandable, the two-tier approach raises serious concerns about the lack of transparency associated with Canada's global trade strategy. As the Canada - EU Trade Agreement has begun to founder, Canadian officials have become increasingly tight-lipped about the specific concerns associated with the agreement.  By contrast, European officials regularly update both elected officials and the general public. In fact, Europe has become the primary source for information about where Canada stands in the negotiations.

    The creation of a secret TPP insider group suggests that the government is shying away from public consultation and scrutiny of an agreement that could have a transformative effect on dozens of sectors. With TPP negotiations set resume in Lima, Peru in less than two weeks, Canada should be increasing efforts to gain public confidence in the talks by adopting a more transparent approach.
       
    Michael Geist holds the Canada Research Chair in Internet and E-commerce Law at the University of Ottawa, Faculty of Law. He can reached at mgeist@uottawa.ca or online at www.michaelgeist.ca.
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    Industry Committee Report on Intellectual Property: A Case of Policy Laundering for CETA and TPP

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    Tuesday March 19, 2013

    The Standing Committee on Industry, Science and Technology released its report on the Intellectual Property Regime in Canada yesterday. The report is the result of lengthy hearings that focused on a wide range of IP issues including patent reform, trademarks, counterfeiting, and pharmaceutical protection. While most the recommendations are fairly innocuous - the committee identifies many issues for further study - there are essentially three main legislative reform recommendations. One involves limiting the scope of official marks, which appears to be the result of comments from Dalhousie law professor Rob Currie (echoed by CIPO's Sylvain Laporte) expressing concern with governmental abuse of official marks in a way that may stifle innovation.

    The other two are particularly interesting as they set the stage for the Canada - EU Trade Agreement and the Trans-Pacific Partnership. First, the report recommends anti-counterfeiting measures similar to those required by CETA and found in Bill C-56.  Should criticism arise over Bill C-56 or CETA, the government will likely point to this report in support. 

    The second involves a classic case of policy laundering as the government has manufactured support for CETA and Trans-Pacific Partnership (TPP) provisions that were not even raised at committee.  The report recommends:


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    Cave or Cancel?: The Future (or End) of the Canada - EU Trade Agreement

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    Friday March 15, 2013

    Last November, Maclean's columnist Paul Wells wrote a piece on the Canada - EU Trade Agreement in which he expressed doubt about the ability to conclude the deal ("Everybody connected to the negotiations assures me there will be a deal. Every public sign I see makes me think there won’t."). I was skeptical about the prospect of years of negotiations falling apart and expected the political level meetings in November to wrap things up.  They didn't.  Last month, International Trade Minister Ed Fast and his European counterpart Karel de Gucht tried again.  Still no deal.

    While Fast wants everyone to believe that momentum is building toward an agreement, it clearly is not. Over the last year, Canada's lead lawyer on the negotiations resigned, Canada's lead agricultural negotiator was re-assigned, and the EU's lead negotiator has added the EU - Vietnam agreement to his responsibilities with rumours that he will head the EU - Japan trade talks. Fast says he won't negotiate the agreement in the media and then proceeds to do exactly that by staking out positions on agriculture and investment. The same business groups that have been lobbying for the deal issue a public letter on the agreement that does little other than promise "future support."

    All of this adds up to missed deadline after missed deadline. In 2010, officials said the deal would be completed in 2011.  In early 2011, they said it would be completed by the end of the year.  By late 2011, the deadline had moved to 2012.  Yet it is now 2013 and Fast admitted this week that there may not be an agreement this year. 


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