Agriculture minister Gerry Ritz says Canada and the United States have agreed to work together to create a new world trade deal that works for both countries when talks begin again in Geneva.
After an hour-long meeting in Washington with U.S. agriculture secretary Tom Vilsack, Ritz told reporters the two agreed a new World Trade Organization deal creating rules based trade is important to their exporters.
He said when negotiations begin again, “and they will begin again sometime,” they will push for some of the same results.
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Ritz said the two also agreed March 13 that at resumption, the agreements or near-agreements that were on the table when talks broke down last summer should be where talks begin.
“Let’s not start at square one,” said the Canadian minister.
That would mean agreement to end export subsidies by 2013 would still be there as well as a general agreement that production-distorting domestic subsidies would be slashed.
However, it also would mean that the general agreement by all countries but Canada that sensitive products such as Canada’s supply managed sectors should be subject to more import competition through reduced over-quota tariffs and increased guaranteed access through expanded tariff rate quotas.
Ritz has told dairy, poultry and egg sectors that Canada will continue to oppose tariff cuts even though he says that is where negotiations should resume.
Meanwhile, the European Union refused to back down last week after coming under fire in Geneva for reinstating export subsidies to try to eliminate surplus dairy products.
During a meeting of the WTO agriculture committee March 12, Canada was among countries that complained about export subsidies that are pushing down dairy prices in world markets, according to a WTO official who briefed reporters after the closed meeting.
“New Zealand, supported by Australia, Argentina, Canada, Brazil and Pakistan, said it was disappointed to see the EU re-introduce export subsidies for dairy products and asked the EU to clarify how long this ‘temporary’ measure would last,” he said.
“The EU said no period has been determined and that the subsidies are within the EU’s WTO commitments.”
The New Zealand delegate responded that “in the current financial crisis, key players should not yield to protectionist pressures and called on the EU and United States to act responsibly for the global economy so that developing countries do not have to face distorted prices,” according to the WTO official.
Canadian dairy industry leaders also worry export subsidies are pushing world dairy prices so low that they may soon jump Canada’s tariff wall.
At the WTO meeting, the Europeans were also challenged on their interpretation of the impact that expanding to 27 members has had on fulfilling EU commitments to the WTO.
As well, countries challenged the U.S. claim that its counter-cyclical payment system and direct payments meet the WTO’s non-distorting “green box” requirements that agricultural support programs not be product specific and not be tied to production levels.
