CETA: PBO downplays it will help the economy

[Oscar]

Parliamentary Budget Officer downplays argument that CETA will help the economy

[ https://canadians.org/blog/parliamentar ... lp-economy ]

May 3, 2017 - 11:50 am

(PHOTO: Parliamentary Budget Officer Jean-Denis Frechette.)

The Council of Canadians has been calling for the Parliamentary Budget Officer (PBO) to do an analysis of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) since September 2015.

At that time, we commissioned an EKOS Research public opinion survey that found 71 per cent of Canadians supported the idea of the Parliamentary Budget Officer doing an independent economic assessment of the deal.

Now, almost two years later and with just seven weeks left before the provisional application of the deal, the Parliamentary Budget Office says, "CETA will lead to some gains for Canada, but they will be modest."

Council of Canadians chairperson Maude Barlow says, “The Parliamentary Budget Officer is alerting us to the fact that CETA won’t create 80,000 new jobs and put thousands of dollars in our pockets, as was previously claimed by the Harper government."

Barlow emphasizes, "In exchange for a pitiful amount of economic growth, we will increase lawsuits from European companies, destroy our family farms, decimate our fisheries, and raise our drug prices. It just doesn’t make sense.”

The Harper government had boasted CETA would also add $12 billion to the Canadian economy. The PBO says the number is closer to $7.9 billion, but highlights, "This is a small effect in a $2 trillion economy, but nonetheless represents an average gain in income of about $220 per person."

The PBO's calculation runs counter to the Tufts University CETA Without Blinders study that found as a result of CETA average income in Canada is projected to fall by $2,650 by 2023 - and result in 23,000 lost jobs in Canada.

Furthermore, the European Parliament's Committee on Employment and Social Affairs voted against CETA in December 2016 because of these economic indicators.

The Huffington Post reported, "The committee report cited economic models showing the European Union stands to lose 204,000 jobs as a result of the trade deal, including 45,000 job losses in France, 42,000 in Italy and 19,000 in Germany."

In February, Prime Minister Justin Trudeau told Members of the European Parliament, “If we are successful, CETA will become the blueprint for all ambitious, future trade deals. If we are not, this could well be one of the last. So make no mistake about it, this is an important moment.”

Contrary to the Prime Minister's promises, the evidence suggests CETA is not a successful "blueprint" of a trade deal for people.

iPolitics notes, "The Liberals’ CETA implementation bill, C-30, passed at third reading in February, with the Liberals and Conservatives voting for it and the rest of the opposition voting against it. It’s currently before the Senate foreign affairs and international trade committee, which holds its next C-30 meeting on Wednesday [May 3]."

Council of Canadians trade campaigner Sujata Dey will be presenting to the committee this afternoon.

To call on the Trudeau government to stop C-30, please click here:
[ https://secure.canadians.org/ea-action/ ... n.id=63794 ]


Brent Patterson's blog
Political Director of the Council of Canadians
[ https://canadians.org/blogs/brent-patterson ]

[Oscar]

PBO report points to glaring problems with CETA

[ https://canadians.org/media/pbo-report- ... blems-ceta ]

Media Availability May 2, 2017

Today, the Parliamentary Budget Officer (PBO) released a study [ http://www.pbo-dpb.gc.ca/en/blog/news/C ... e_Analysis ] predicting meager GDP gains of $220 per Canadian under the Canada-EU Comprehensive Economic and Trade Agreement (CETA). The Council of Canadians is available for comment.

“The Parliamentary Budget Officer is alerting us to the fact that CETA won’t create 80,000 new jobs and put thousands of dollars in our pockets, as was previously claimed by the Harper government,” said Maude Barlow, National Chairperson of the Council of Canadians. “In exchange for a pitiful amount of economic growth, we will increase lawsuits from European companies, destroy our family farms, decimate our fisheries, and raise our drug prices. It just doesn’t make sense.”

Sujata Dey, Trade Campaigner with the Council of Canadians, pointed out some problems with the PBO’s analysis.

“The PBO’s study uses an economic model that assumes full employment – that everyone has a job. It also measures gains from exports without looking at offsetting losses from imports,” said Dey. “Nor does the model consider effects on public services, drug prices and workers. Yet despite these flaws, the study still only predicts very small gains in GDP.” -30-

For more information or to arrange interviews:

Dylan Penner, Media Officer,
Council of Canadians,
613-795-8685,
dpenner@canadians.org.
Twitter: @CouncilOfCDNs