The Lucknow Sentinel, 1988-08-03, Page 15LUCKNOW
L 528 2730 j
Luclmow Sentinel, Wednesday, August 3,1988—Page 15
Canada not obligated to sell its water
By John C. Crosbie
Minister for
International Trade
Canada's water is not for sale. The
Canada -U.S. • Free Trade Agreement
FTA) does not obligate or compel Canada
in any way to export water to the United
States, and in no way provides for the
large scale export of Canada's water
resources, In fact, the large scale export of
water is not even covered by the FTA.
There has been considerable attention
paid recently to the issue of the export of
Canada's fresh water resources. Critics of
the Agreement have concluded that
because water is listed in the Tariff
Schedule that accompanies the FTA, then
the U.S. has full access to Canadian
waters. Nothing could be further from the
truth. Large scale interbasin transfers of
water are an environmental matter, not a
trade'inatter. A brief examination of the
facts should clarify the Federal Govern-
ment's position on this important issue.
The Federal Water Policy clearly states
that the Government of Canada will not
permit the large scale .export of water or
the diversion of Canadian rivers to the
United States. Nothing in the FTA affects
the Federal Water Policy, which was an-
nounced by the Honourable Tom
McMillan, Minister of the Environment,
on November 5, 1987. There is nothing in
the FTA which prevents or hinders the
Government from fully implementing the
Federal Water Policy by legislation or
otherwise.
Both the FTA and the Federal Water
Policy were developed in keeping with pro-
visions of the General Agreement on
Tariffs and Trade I GATT I, which enable a
country to restrict the export of a natural
resource for reasons of environmental pro-
tection. These are precisely the grounds
for Canada's policy against water exports.
The fact that the Policy was announced
four weeks after the completion of the
Free Trade negotions confirms that the
Water Policy will continue to govern
Canada's approach to the management of
this precious natural resource.
Critics have' suggested that since water
was not explicitly excluded from the FTA,
then the United States has some kind of
claim to Canadian waters and that Canada
will somehow be forced to sell huge
volumes of water to the Americans. Such a
misguided assumption clearly
demonstrates how a complex issue can be
so poorly understood. Large scale water
exports have never been part of our
trading relationship with the United
States. How can a trade agreement ex-
clude a commodity or substance that is not
even traded, particularly ywhen Govern-
ment policy forbids its export? The argu-
ment suggesting that fresh water is im-
plicitly and explicitly part of the FTA is
largely meaningless. Nothing in the FTA
or GATT can force Canada to export water
if it chooses not to. The Federal Water
Policy makes the Federal Government's
position on this issue very clear.
As has been pointed out by many con-
cerned individuals, water is in the GATT.
In fact, water has been considered a com-
mercial product in bottled or containerized
form for 40 years. That is why Item 2201 of
the Harmonized. Tariff Schedule attached
to the FTA refers to water under the
"Beverages, Spirits and Vinegar"
chapter. This simple reference to a
beverage has been the basis for all of the
apprehension that has developed about
water exports.
While some Canadian and American
border communities have arrangements
to share water from common waterways,
Canada's primary export of water is the
bottled variety. Although the volume of
bottled water traded between Canada and
the US is negligible, the FTA provides for
the elimination of any tariffs presently ap-
plied. It is interesting to note that air is
covered under the FTA, in liquid and com-
pressed form (Item 2851), yet little con-
cern has arisen about the export of this
particular resource.
Even the Americans recognize that our
policy prohibiting inter -basin transfers of
water is unaffected by the FTA. Canada
has never been formally approached by
any jurisdiction in the United States regar-
ding the purchase and large scale export of
water by diversion. They know our
answer: "No". This will be the answer
after' the Free Trade Agreement is
enacted, as it was before we entered into -
the FTA negotiations. In any case water -
short areas of the United States southwest
are dealing with their situation through
improved conservation measures, rather
than placing faith in grandiose, en-
vironmentally damaging, multi -billion
dollar water diversion schemes.
The Government of Canada is fully
aware of the special significance of water
for Canadians. Water has been, and will
continue to be fully protected. The
Canada -U.S. Free Trade Agreement is no
threat to Canada's water resources. Large
scale water exports will not happen.
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