A controversial agricultural text that emerged undebated and unapproved from the failed World Trade Organization meeting in Mexico in September will be the basis for future negotiations despite the view of some powerful Canadian farm groups that the text is dangerous and should be discarded, federal ministers said last week.
The text calls for movement toward ending export subsidies, cutting domestic subsidies and cutting all protective tariffs.
It has divided Canada’s agricultural industry.
Exporters have hailed it as flawed and too cautious but a good basis for discussion.
Read Also
Genesis Fertilizers seeks government funding
Genesis Fertilizers is actively seeking funding from government and a strategic partner. The company dispelled a rumour that DL E&C has abandoned the project.
The supply managed sectors, supported by the Canadian Federation of Agriculture, insist the text is too flawed, would leave subsidies too high in the European Union and the United States and would jeopardize supply management by forcing cuts in over-quota tariffs.
“Agriculture in Canada dodged a bullet” when negotiations broke down in Cancun, Mexico, CFA president Bob Friesen told the House of Commons agriculture Nov. 6. The Cancun breakdown should give negotiators time to find a better way to increase trade without jeopardizing domestic agricultural policies.
Federal ministers involved in the WTO process said last week that is not how it will unfold. Despite Canada’s official unease with some of the articles in the Cancun text, it will accept the text as the basis for future negotiations.
“That is certainly the understanding,” agriculture minister Lyle Vanclief told reporters Nov. 8.
“Whether we like how the Cancun text addresses a number of issues, if you were to throw that text out, what would you talk about in the next text? All of the issues people want to talk about are in that text, maybe not addressed in the way we want them addressed but you’re not going to throw out a text and say we’re not going to talk about domestic subsidies or export subsidies.”
He said Canada’s job is to try to convince other countries to make changes in the text that Canada needs. At Cancun, the minister said in an interview that it will be virtually impossible to convince other countries to agree that high over-quota tariffs should not be cut, since Canada is the only country of 148 that holds the position.
Canada’s multibillion-dollar supply managed sector says that is a reason for Canada to reject the Cancun text as a bargaining base, since it calls for tariff cuts without exception.
Last week, along with Vanclief, trade minister Pierre Pettigrew confirmed in a private meeting with the Canadian Agri-Food Trade Alliance that Canada accepts the Cancun text as the next starting point.
Meanwhile, when negotiations sputter back to life next year, there will be a new WTO agriculture committee chair.
Stuart Harbinson of Hong Kong, chair of the agriculture negotiations since this round of talks was launched 18 months ago at Doha, Qatar, said last week he is resigning to concentrate on being chief of staff to WTO director general Supachai Panitchpakdi.
