The Conservative government has been far more uncompromising in defending supply management at World Trade Organization talks than were its Liberal predecessors, says Canada’s chief agriculture trade
negotiator.
“The line that this government has taken is about as hard as it can get,” Steve Verheul said in a Feb. 7 interview after a speech to Dairy Farmers of Canada. “I’m not (allowed to discuss) tariff reductions or tariff rate quota expansion and that is a line that has not been taken by previous governments.”
He used his speech to the annual DFC convention to deny industry rumours that he is considering alternative outcomes at the WTO, even while Canada officially opposes compromise on reductions in supply management protective tariffs or increases in guaranteed access levels.
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Verheul said before ministerial meetings in Geneva and Hong Kong in recent years, he did informally discuss compromises that could have minimized damage to Canada’s protected industries if a WTO deal was reached despite Canada’s opposition to supply management tariff cuts.
This time, he is not allowed to do that.
Part of the reason was a unanimous parliamentary vote Nov. 22, 2005, demanding that Canada not sign any deal that undermines supply management pillars. The other reason is that the Conservative government will not allow talk of compromise on over-quota tariffs or tariff rate quota expansion.
Verheul said the Canadian position is more rigid than that of other protectionist countries such as Switzerland and Norway that have agreed to support cuts in their high tariffs.
“My instructions are very clear,” said the negotiator. “That has left me out of some discussions, that has left me out of some rooms, but it does mean we have maintained a hard line that the industry wants us to take, that all parties support.”
Verheul’s comments came after the agriculture minister used his speech to the dairy delegates to strongly embrace supply management.
DFC, along with other supply management groups, had questioned the Conservative commitment after trade minister David Emerson said in December that Canada’s defence of supply management protections was hurting its ability to win a WTO deal that will help exports get into expanded markets.
Opponents of government attempts to end the Canadian Wheat Board wheat and barley monopoly have been suggesting that if the Conservatives win that one, they could turn their attention to offering marketing “choice” to dairy, poultry and egg producers.
Several times, federal agriculture minister Chuck Strahl tried to put that issue to bed, at first to what seemed like a skeptical unresponsive crowd.
“Supply management is good for consumers, it’s good for producers and it’s good for processors, it’s good for the government and it’s good for Canada,” he said early in his speech, expecting applause.
The crowd sat silent.
“You’re allowed to applaud here,” he joked and delegates finally complied.
Strahl denied any connection between the CWB and supply management issues. Farmers in the supply managed sectors support the system overwhelmingly while prairie farmers are divided on the wheat board issue, said the minister.
“Some would make a connection. There is none. These are two totally separate issues.”
