WINNIPEG – The new GATT agreement protects the interests of the ”big boys” in world trade at the expense of small fries like Canada, says a senior Canadian Wheat Board official.
The new agreement does open markets slightly and provides for a gradual reduction in export subsidies, says commissioner Ken Beswick.
“But neither market access nor reduction in export subsidies have been resolved the way most of us have been hoping for, for so many years,” he told the annual convention of the Western Canadian Wheat Growers Association.
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The recently-negotiated agreement was designed by the “big players” in world trade to minimize its influence on their sacred cows, Beswick said.
Meanwhile, “an industry like yours that is competitive in world markets will have to continue to take some major hits for the foreseeable future,” he told the wheat growers.
The new General Agreement on Tariffs and Trade (GATT) was essentially negotiated between the European Community and the United States and then presented to the other 113 GATT nations to accept.
Under the deal, by the year 2001 grain exporters must reduce subsidy spending by 36 percent while cutting volumes by 21 percent from 1991-92 levels. Originally the base period was to be 1986-88.
That change means both the E.C. and the U.S. can export 15 million tonnes more subsidized grain during the transition period 1995-98 than originally expected.
Agriculture minister Ralph Goodale told the convention that even though subsidy cuts are smaller and slower than Canada would have liked, the bottom line will still be significant reductions in export subsidies and a much-needed increase in grain prices.
“The subsidy wars are at least contained,” he said.
Dick Dawson, recently-retired vice-president of Cargill Ltd., warned the wheat growers that the new GATT deal won’t spell an end to nasty trade disputes.
Competitors like the Americans and Europeans look for every loophole and every harassing tactic imaginable to retain their advantage in world markets, he said.
“We have to learn to be a mean, tough, global warfare player in trade negotiations, like everyone else is,” he said. “We tend to be a little bit too kind and quiet and expect the world to chat for 10 years.”
When it comes to battling the Americans for market share, concepts like integrity and spirit of intent are “worthless words,” said Dawson, who now runs a consulting company.
“The Yankee trader is a formidable opponent and we must learn quickly how that game is played.”
