TPP rises from the ashes

Rumours of the death of the TPP are greatly exaggerated. After President Trump announced U.S. withdrawal from the Trans-Pacific Partnership, I congratulated him: “Thank you, Mr. Trump, for killing the TPP.”

 image: WMAL radio

I now realize that Trump’s withdrawal from the TPP was not an indicator of leadership, but a sign of retreat from the international community. It’s just another indication of the degree of U.S. marginalization. Trump’s withdrawal from the Paris Agreement is yet another indicator that we must carry on without him.

Where the original TPP had a number of flaws, the new TPP can be negotiated to Canada’s advantage. Canada was disadvantaged in the first round because we were latecomers: we had to accept what had already been negotiated.

Canada is a trading nation and as such, we depend on fair trade agreements. As politicians like to do, I’ll list my five conditions for acceptance of the new TPP -dubbed TPP11 after the number of countries left to pick up the pieces.

Investor-state dispute settlement provisions (ISDS) should not be part of TPP11. This allows companies to seek damages from governments when local regulations interfere with profit-making.

When disputes arise, as they are bound to do, they should be settled in a transparent manner by judges, similar to the International Court, not in private between arbitrators as is now done with NAFTA.

Environmental standards should not be part of TPP11. Environmental damage is seen by industry as a cost of doing business -a price which indigenous peoples and future generations will pay. Environmental standards need to be negotiated by separate accords like the Paris Agreement.

Intellectual property and should be excluded as well. Artists and small software companies need protection, but too often concern for intellectual property masks large corporate interests such as Disney.

Exclude health regulations as well. They are an excuse for Big Pharma to extend the patent life of drugs that could be made cheaper with generics.

TPP11 will be a meeting of middle powers now that the U.S. is out, and China and Europe were never in. Canada can then negotiate from a position of strength when it comes to superpowers. Trump favours individual bilateral deals because he imagines an advantage over smaller countries. But if those smaller countries can form a block where there is an alternative to the bully-tactics of Trump.

The TTP11 would give Canada access to markets not previously available, says Hugh Stephens of the Canadian Global Affairs Institute. It will jump-start bilateral talks that were going nowhere, like those between Japan and Canada. With Japan in the TTP11, negotiations can proceed. And trade agreements under the umbrella of TPP11 can take place with other countries where Canada has no bilateral agreements such as Australia, New Zealand, Malaysia and Vietnam and Malaysia.

And in countries where Canada does have bilateral agreements, such as Mexico, Chile and Peru, the TTP11 can tie up loose ends.

Whereas Canada was a follower in the original TTP, we can be a leader in fair trade under TTP11. With the U.S. retreating into a fog of befuddlement, Canada needs to step up on the world stage.

 

 

Canada’s internet remains flat, despite challenges

Canada remains a world-leader in keeping our internet equal for all. Challenges to tilt the internet in favour of special interests come from at home and abroad. Last month, Canada’s telecomm regulator ruled that all online data be treated equally.

The ruling comes after Videotron, a music streaming company, offered their wireless service to subscribers at no charge for data used. This practice, called “zero-rating,” is violation of net neutrality because content would be biased in favour of their service. Subscribers to other music streaming services would pay more. The Canadian Radio-television and Telecommunications Commission ruled the practice illegal.

In his ruling, the CRTC chair Jean-Pierre Blais suggested a less disingenuous tactic for Videotron:

“Rather than offering its subscribers selected content at different data-usage prices, Internet-service providers should be offering more data at lower prices,”

The ruling is a victory for the little-lobby-group-that-could, OpenMedia.ca (which I support financially).

“We just won again!,” they crowed in an email to me, “The Canadian Radio-television and Telecommunications Commission (CRTC) just decided in favour of historic Net Neutrality rules that prevent Big Telecom from unfairly manipulating data caps to discriminate against certain apps and services.”

Michael Geist, professor of Internet and E-commerce Law, was equally enthused but more muted in his response:

Most notably, Canadian consumers and creators will benefit in the long term from the Net-neutrality policies.”

Canada’s firm support of net neutrality extends beyond a level playing field. Without it, giant telcomms could start to collect browsing habits of unsuspecting customers and sell them to advertisers for the purpose of targeting specific demographics.

The concept of a flat internet is vital to free expression and innovation. In an earlier column, I argued that net neutrality is fundamental to democracy:

Canadians must stand on guard for a free and democratic internet.”

Net neutrality in the U.S. has been tilting back and forth. In 2014, the U.S. appeals court ruled that the internet was not a “common carrier.” A common carrier is like a telephone line, simply a conduit to carry information. If telephones weren’t a common carrier, telephone companies could make it easier for businesses to access your phone than your friends and family.

The designation of common carrier is vital to net neutrality. Without that designation, internet service providers could effectively suppress content by making it more costly to view.

Sensibly, President Obama restored the designation of common carrier in 2015.

Now President Trump’s appointees to the U.S. telecomm regulator, called the FCC, intend to overturn net-neutrality in the U.S.

Canada faces a mixture of faux worry and resistance from the U.S.  A Trump-appointed advisor to the FCC, Roslyn Layton, said “My biggest concern for Canada is that you continue to add regulation that deters the incentive to invest,” Her fake concern for Canada not believable. Many big U.S. giants such as Netflix oppose the Trump initiatives because they don’t want their subscribers paying more than competitive video-streaming. They fear that U.S. telcomms will do what Videotron tried to do and tilt the internet in favour of their own services.

I have a feeling that Layton’s real concern is that U.S. tech start-ups will move to Canada where innovative technologies still have unbiased access to the internet.