Feds opt to stay in Cairns Group – for now

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Published: October 24, 2002

Canada decided last weekend to remain a member of the trade

liberalization-promoting Cairns Group for now, despite some sharp

disagreements on goals for the current round of world trade talks.

At a parallel meeting of farm leaders, Canadian Federation of

Agriculture president Bob Friesen refused to sign a declaration by

Cairns country farm leaders urging the group to stay the course in

demanding radical subsidy cuts and border openings.

He said Cairns proposals, if adopted, would lead to loss of crop

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insurance, the Net Income Stabilization Account program and supply

management programs.

“Canada’s farmers feel that NISA, crop insurance and our orderly

marketing structures are an integral part of the Canadian agricultural

system and the loss of these programs is not acceptable,” Friesen said

in an Oct. 21 statement.

At a meeting in Santa Cruz, Bolivia, Oct. 18-21, agriculture minister

Lyle Vanclief signed onto a Cairns call for elimination of export

subsidies and “the maximum possible reduction in trade-distorting

domestic support, as well as improved market access for all agriculture

and food products.”

But Vanclief did not budge from his position that Canada does not

support Cairns positions on slashing domestic support or border

protections to the point that would hurt Canada.

In Ottawa, Agriculture Canada trade official Graham Barr said the

government continues to believe the Cairns group is a vehicle within

which Canada’s overall trade goals can be pursued in World Trade

Organization talks.

But it is not an open-ended commitment to stay in Cairns. He said there

is concern that the Cairns proposals to change domestic support and

market access rules could be seen by other countries as too extreme.

“We fear that those would be viewed as very, very extreme by other WTO

members with the effect that the Cairns Group proposal would be

dismissed as radical and not considered,” he said. “We don’t see that a

proposal that is going to be dismissed and laughed out of the room is a

good way to advance our position. At this time we are continuing to

work with the Cairns Group because it helps us, but if it starts not to

help us, then there’s other things to consider.”

Ambivalence like that is a concern for the Canadian Agri-Food Trade

Alliance, which represents groups ranging from Grain Growers of Canada

to the Canadian Cattlemen’s Association. They do not believe Canada

should compromise export interests for domestic protections.

CAFTA president and Ontario soybean producer Liam McCreery was in

Bolivia for the Cairns meeting and he was urging Canada to sign onto

the majority position.

In Ottawa, GGC executive director Cam Dahl said exporters are happy

that Canada remains in Cairns.

“We believe that our interests are best pursued in a broader coalition.”

He also suggested the CFA should not be Canada’s only farmer

representative at Cairns meetings. It represents both exporters and

supply managed sectors.

Dahl said McCreery argued in Bolivia that exporters also should be

members of the Cairns farmer groups.

“I fully understand where the CFA is coming from, but our point is they

may not represent the full farmer opinion on trade issues.”

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