Issues of Concern to NFA Members:

(TOKYO, JAPAN) - The Canadian Federation of Agriculture (CFA) joined with other farm organizations from around the world to call for "Fair and Equitable WTO Trade Rules" during the WTO Mini-Ministerial meeting in Tokyo this weekend. Ministers and government negotiators from 25 countries, including Canadian Ministers of Agriculture and International Trade, discussed trade issues, particularly the agriculture paper entitled "Negotiations on Agriculture First Draft of Modalities for the Further Commitment" released today by Stuart Harbinson, WTO Committee on Agriculture Chair.

Unfortunately Harbinson's paper contained little good news for Canadian farmers. "CFA is discouraged that the same flawed methodology from the Uruguay Round is also being proposed for this round." stated Bob Friesen, CFA President. "Farmers are looking to this round of WTO negotiations to level the playing field and to create fair and equitable trade rules that will provide real improved market access opportunities to Canadian exporters. If this paper were implemented it would be a real blow for almost all agriculture sectors in Canada.

While this paper calls for aggressive tariff cuts and expansion of minimum market access commitments, it completely overlooks the need to ensure that exporters can actually use the expanded tariff rate quota (TRQ) access. It allows those countries that aggregate products and maintain high within quota tariffs to continue to do so providing, in many cases, little if any additional access to Canadian exporters. At the same time this proposal would virtually destroy Canada's supply management systems if implemented. "Canada has some of the lowest within quota tariffs in the world giving importers substantial additional access to our markets with Canadian exporters gaining little or nothing in return," said Friesen. "Adding insult to injury, the requirement to exclude imports from countries with preferential access, such as U.S. and Mexico, toward TRQ volumes will only exacerbate this problem for Canadian farmers."

Harbinson's paper proposes reductions to deminimus, amber and blue box domestic support programs, while leaving green box spending uncapped. While some of the changes in the green box will assist in designing future Canadian safety nets programs to fit in the green box, it does nothing to cap or reduce the high levels of green support currently being paid to U.S. and EU producers. In addition the reduction of the allowable deminimus level and the capping of commodity specific support at 1999-2001 levels will likely limit Canada's ability to provide adequate future safety net funding to farmers.

"We cannot compete against other government treasuries indefinitely. Canadian farmers need effective WTO disciplines immediately to bring an end to the massive subsidies levels we currently see in the U.S.," exclaimed Bob Friesen. "We have been calling on our government to ensure that Canadian farmers are on a level playing field with other producers and with this paper it appears we are moving in the opposite direction."

One of the most blatant attacks on the Canadian agriculture industry is the proposed wording on state trading enterprises (STEs). Although it was outside the Chair's mandate to propose new text for STEs, it is clear U.S. and EU influence has prevailed, with proposed text to restrict farmers ability to maintain market power in the food chain. The proposed wording on STEs would seriously undermine the ability of producers' orderly marketing structures, such as the Canadian Wheat Board, to operate effectively.

The paper calls for the elimination of export subsidies over a nine-year period. Bob Friesen stated: "We are pleased to see the elimination of export subsidies, but would prefer a shorter period of elimination."

With the March 31 deadline to finalize this modalities paper fast approaching, the CFA calls on the government to push for a positive result for farmers by promoting the Canadian approach.

- 30 -

Founded in 1935 to provide Canada's farmers with a single voice in Ottawa, the Canadian Federation of Agriculture is the country's largest farmers' organization. Its members include provincial general farm organizations as well as national and inter-provincial commodity organizations from every province. Through its members, CFA represents over 200,000 Canadian farmers and farm families.

Contact:
Kieran Green, CFA Communications Coordinator, (613) 236-3633, info@cfafca.ca
Bob Friesen, CFA President, (204) 724-0824 (cell)
Brigid Rivoire, CFA Executive Director, (613) 236-3633 / (613) 715-3113 (cell)

CANADIAN FEDERATION OF AGRICULTURE
Suite 1101, 75 Albert Street, Ottawa, Ontario, K1P 5E7
(613) 236-3633 - voice
(613) 236-5749 - fax
info@cfafca.ca

 

• All Issues...

Tell us what you think. Contact us.