Province says new TPP deal could resolve CETA sore spot

The new Trans-Pacific Partnership (TPP)trade deal should prompt the federal government to resolve a long-standing dispute with Newfoundland and Labrador abouta similar deal with Europe, according to the province'sMinister of Business Darin King.

• Trans-Pacific Partnership offers dairy sector good news, bad news and a question mark
• Trans-Pacific Partnership: Industry, provincial reaction is mixed
• Processing requirements 'off the table' in CETA spat with Ottawa: Darin King

King said Wednesday the TPPwill reduce the tariff on Canadian seafood products sold to Asian markets, something provincial negotiators pushed for.

"At first blush, from what I've seen, it looks very positive," said King.

The TPP will also have an impact onother industries. For example, dairy farmersgave up3.25 per cent of their annual production.

While the concessions will result in lost revenue,the federal government hasannounced a compensation package to minimizethe effectsondairy, poultry and egg farmers.

A new $450-million processor modernization fund will encourage capital investments and other improvements.

Treat everyone alike, says King

King said that is what Newfoundland and Labrador negotiated for the fisheryunder the Comprehensive Economic and Trade Agreement (CETA) with the European Union, to offset the loss of minimum processing requirements.

However, Ottawa and the province have argued over conditions attached to the fund,with thefederalgovernment saying it willonly provide compensation for "demonstrated losses."

Both King and Premier Paul Davis accused the Harper government of reneging on its word.

"The fact that the feds have now said it's OKin other sectors to provide compensation before demonstrating loss to me indicates that they recognize they have to find a way forward with Newfoundland and Labrador," said King.

"I'm confident the feds aregonnasee that there's no way you can treat one sector or region of the country different than another when it comes to trade deals."

King saidthis province believes the CETA is "a great deal for Newfoundland and Labrador."

The province has not yet seen the text of the TPP, which creates a 12-nation trading bloc with countries such as Japan, Australia and New Zealand.King said he will reserve final comment until then.