TORONTO — Attempts to make it harder to use export credit arrangements as a form of export subsidy are nearing an impasse, says a Canadian official.
Suzanne Vinet, director general of trade for Agriculture Canada, said the United States is offering few concessions at negotiations in Paris sponsored by the Organization for Economic Co-operation and Development.
She said the Americans are trying to use the talks to establish controls over what credit arrangements the Canadian Wheat Board can create.
“I don’t think we will be able to support what has been proposed there,” she said.
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“The Americans are trying to write a deal which protects what they are doing. And they are using the talks to go after the wheat board again.”
She said Canada may refuse to sign a “chairman’s text” that was being debated at the negotiations.
“If we don’t see any movement by the U.S., we will refer it back to the WTO (World Trade Organization).”
The negotiations are a key part of the drive by many countries to limit or get rid of direct and indirect export subsidies in world markets. The European Union continues to use export subsidies, but it has agreed to consider negotiated reductions as long as other countries agree to discipline their own form of export subsidies.
While most countries have gotten out of the direct export subsidy business, critics charge that the U.S. and others use generous export credit terms or food aid as an indirect way to do what they have stopped doing directly — buying market share.
The next round of WTO talks is expected to tackle that issue. The OECD talks were to be a precursor.
Instead, the Americans have offered to accept only minor new restrictions in their use of generous export financing deals.
And they have insisted that credit rules be imposed on the wheat board that would not apply to its private sector competitors.
The EU also is insisting that the wheat board is an unfair exporter that needs disciplines.
Vinet said Canada is not prepared to allow the export credit discussions to become another attack on the wheat board.
