The leaders of Canada’s protected supply managed dairy, poultry and egg sectors are making a mistake by demanding a no-compromise stance from the federal government at World Trade Organization talks, says agriculture minister Chuck Strahl.
It means the other 149 WTO members that can accept some decline in over-quota tariffs for sensitive products will negotiate the rules for a WTO deal.
If that happens, universal tariff cuts will be part of the deal. Canada will not have been part of crafting the rules if the coalition of five supply managed industries continues to insist Canada avoid any compromise.
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Yet Canada will sign that deal, if it comes, Strahl said Feb. 27 in a blunt warning to industry leaders.
“It is inconceivable that we would walk away from the WTO so take that as your first gospel truth,” Strahl said after an appearance at the House of Commons agriculture committee where he proclaimed the Conservative government’s defence of supply management.
“Then the question is how do we move ahead to look after your interests?”
Strahl said he believes the best way to protect the industry is to stay in the WTO negotiations on sensitive products, fighting for the least damage possible to the industry.
Instead, by telling the government not to discuss over-quota tariff reductions or import increases, the supply managed sectors are telling the government not to let agriculture negotiator Steve Verheul go to meetings where other countries are trying to hammer out a tariff-reducing formula.
“OK, those are marching orders but is this really in your best interests?” Strahl said he has asked leaders in supply managed industries.
“I’m absolutely sure that’s not the best way to protect your interests. You have a government that says we fully stand by supply management and we will get the best people to make sure your industry gets absolutely protected in negotiations and why don’t you let us go to the negotiations?”
Supply management leaders say if a final WTO deal includes measures that would increase competition for the dairy, egg and poultry sectors, the government should refuse to sign.
In a Nov. 22, 2005, unanimous House of Commons vote supported by Strahl and the rest of the Conservative caucus, MPs endorsed that industry position, demanding no compromise on supply management protections.
But Strahl now says that is not possible.
Still, the industry will not back down.
“I’m convinced they should reconsider that but so far they haven’t, so we’re sticking to our guns and we’ve got a hard line and 149 other countries disagree,” said the agriculture minister.
“Remember gospel truth No. 1: In the end, we’ll be in the WTO so are you sure you (supply managed producers) want us to stay out of this negotiating room?”
