'We're dealing with an unknown': P.E.I. manufacturers meet ahead of NAFTA negotiations
Nicole Williams | CBC News | Posted: July 12, 2017 8:00 PM | Last Updated: July 12, 2017
'We have to hold the federal government's feet to the fire in this and make sure we're well represented'
With upcoming negotiations on the North American Free Trade Agreement (NAFTA) with the Trump administration, the P.E.I. government brought in the province's top manufacturers Wednesday to hash out their concerns about the potential outcomes of those talks.
Minister of Economic Development and Tourism Heath McDonald said it all boils down to the cost of doing business.
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Seventy per cent of the Island's trade exports go to the U.S. and said many manufacturers are hoping to keep NAFTA the way it is.
"If you put a 10 per cent tax on, and the dollar goes back down to where it has been in the past, there would be significant impact on businesses and could create very vulnerable sectors here on Prince Edward Island," said MacDonald.
"That would be very scary for the population of P.E.I. and employment."
Those concerns were echoed by many in the meeting, including Cavendish Farms president Robert Irving, who wants to keep NAFTA the way it is.
"Well the U.S. by far is the single biggest country that we do business with. It by far represents the majority of our business today," said Robert Irving, president of Cavendish Farms. "Our concern is that we keep NAFTA in place."
'We're going to be relatively aggressive'
But for some, the most concerning aspect is the unknown of what the Trump administration will ask for.
The president has threatened to scrap the agreement if it can't be renegotiated to his satisfaction and that has some Island manufacturers like Amalgamated Dairies Limited (ADL) on edge.
"We're dealing with an unknown with a new administration in the U.S. and we're dealing with the fact that we do not have clear objectives of what their intent may be for these trade discussions," said ADL business development manager Chad Mann.
MacDonald said the province is working closely with the federal government to ensure they can negotiate a fair deal with P.E.I. in mind.
"We have to hold the federal government's feet to the fire in this and make sure we're well represented," said MacDonald. "We're going to be relatively aggressive. We're a small province and this could have some major effects on some of our companies."
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