Former ag minister warns against end to supply management

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Published: August 22, 2002

Former federal agriculture minister John Wise is urging Ottawa to be

politically vigilant in its defence of supply management tariff

protections when a new world trade agreement is negotiated next year.

“It’s on the table, no question,” the former Progressive Conservative

MP said in an interview from his home near St. Thomas in southern

Ontario.

“There are people calling for it to be traded away to benefit export

industries or to lower Canadian prices. That would be a mistake.”

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But Wise, who was agriculture minister in 1979-80 and 1984-88, also

argued that based on his own experience negotiating the Canada-United

States Free Trade Agreement in 1987-88, there will be little enthusiasm

among government officials or trade negotiators to defend high tariffs

in the face of demands for

reductions.

“In my day, and I’m sure it’s the same today, there was great pressure

from public employees at a senior level in trade matters to go along,”

Wise said.

“Political will prevailed. I’ll never forget the pressure on me, but I

got the support of the prime minister and cabinet and the officials

were instructed to do the job.”

Supply management import controls were excluded from the FTA and later

the North American Free Trade Agreement.

However, the Conservative government in its dying days during the early

1990s and then the newly elected Liberal government were unable to

exclude the protections from the new world trade agreement signed in

1994.

Import controls were replaced by high tariffs that protected the system

in the short term but will be under strong pressure during the current

round of World Trade Organization negotiations.

“There is no doubt they will be under attack,” Wise said.

“The government and their negotiators must resist, although some

reduction does seem inevitable.”

Wise said he was speaking out because he sees some farm export lobbies,

domestic processors and newspaper columnists lining up to demand that

supply management protections be bargained away because they are bad

policy and inconsistent with Canada’s trade liberalization stance.

“If the Canadian government sacrificed supply management in the current

Doha round of WTO talks, as some commentators suggest, not only would

our prices go up, but our food probably would be supplied by U.S.

producers,” he wrote in a recent newspaper column warning against

destroying supply management.

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