Feds still feel heat on trade

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Published: May 22, 2008

For Canada’s trade liberalization advocates, the country’s refusal at World Trade Organization talks to concede any weakening in supply management protections has been a longstanding irritant.

“Has Canada’s position been a negative impact on our ability to get a better deal for export interests?” said Keith Lancastle, executive director of the Canadian Agri-Food Trade Alliance.

“We won’t really know until there is a deal.”

However, he said the message from Geneva whenever CAFTA members are there has been clear.

“Negotiations are about compromises.”

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CAFTA president Darcy Davis said the problem for exporters with Canada’s stance on sensitive product protection aimed at defending the Canadian dairy, poultry and egg sectors is that around the world, pork, beef and cereal sectors are the most commonly designated as “sensitive” and protected from imports.

“We want to see some give and take, some compromises on all issues that will lead to a deal.”

Critics of Canada’s refusal to discuss any reduction in supply management protections argue that it has weakened the Canadian reputation in Geneva.

Federal agriculture minister Gerry Ritz begs to differ.

He said Canada’s refusal to compromise on supply management protections has won praise from WTO agriculture negotiations chair Crawford Falconer, a New Zealander who as his country’s WTO ambassador was a fierce critic of protectionism.

“I had a telephone conversation with Crawford Falconer just outlining that our position on supply management and open access has not changed,” Ritz said. “He actually commended us for sticking with our position through all these debates and these discussions as other countries have changed from here to there, pillar to post.”

Lancastle said the minister’s claim was surprising in light of other messages from Falconer asking countries to move off their initial bargaining positions if they want a deal.

“I’m a bit perplexed by that statement,” he said.

Falconer will release as early as this week the next version of his report on where agricultural negotiations are heading. It is expected to continue to call for a reduction in sensitive product over-quota tariffs and expansion in the tariff rate quota that guarantees import access for a percentage of the domestic market.

He has told negotiators he wants them to make compromises to narrow gaps in the text so he can call ministers to Geneva by June.

Ritz said if there is no deal by summer, talks could be suspended for months or even years as the United States changes presidents and elects a new Congress and France takes over the presidency of the European Union with a less aggressive trade agenda.

“I guess that’s the reality of these situations,” Ritz said. “You strike while the iron is hot or it cools off and new leadership comes in and you’ve got to reheat the iron, and that all takes time.”

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