The federal government must be prepared to support Canadian farmers with public subsidies if they are being hurt in export markets by subsidies of other countries, says the Reform party trade critic.
Peace River, Alta. MP Charlie Penson said in a June 20 interview that Reform remains committed to reducing subsidies and allowing the market to work.
However, he noted the European Union continues to have an export subsidy program and the Americans keep the export enhancement program on the books for use if they need public dollars to buy foreign market share.
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“If export subsidies by others start to affect our farmers’ ability to export or the prices they receive, then I think we have to look at providing support for our farmers,” he said.
Penson, a Peace River grain farmer, was named Reform caucus trade critic when leader Preston Manning announced his shadow cabinet June 20.
He said the Reform party opposition in Parliament also will fight any weakening of government resolve to avoid caps on exports of grain to the United States.
At a meeting in Ottawa June 27 with Canadian trade officials, the Americans will complain about Canadian grain exports this year and suggest that Canada should honor voluntarily a one-year cap of 1.5 million tonnes applied in 1994. Exports this year are expected to exceed that level for the first time in four years.
Canadian officials will argue there will be no controls on grain exports this year, since Canadian exporters are merely filling a market demand.
Penson said Reform will support that position and is worried the Liberals will agree to a cap, as they did in 1994.
Penson, a second-term MP, said his party will be encouraging supply managed sectors to accept that the next round of world trade talks will erode further their tariff protections won in the 1993 trade agreement.
