Heading into next week’s crucial World Trade Organization negotiations in Hong Kong, the chair of the agriculture talks says there is “considerable potential convergence” on some key issues, but many gaps to bridge.
New Zealander Crawford Falconer said in a report to WTO director general Pascal Lamy there is broad agreement that tariff cuts have to follow a pattern in which the highest tariffs are cut the most, but there are sharp divisions over whether all high tariffs must be cut to a maximum cap.
There is agreement that export subsidies must end but no date is set and there is no agreement on the place of export monopolies in the mix.
Read Also
Organic farmers urged to make better use of trade deals
Organic growers should be singing CUSMA’s praises, according to the Canadian Chamber of Commerce.
There is agreement on a tiered approach to support cuts with the highest being cut the most, but no agreement on how much subsidy can be reworked and not cut.
“My own sense, when I review this myself, is the compelling urgency of seizing the moment and driving the process to a conclusion as rapidly as possible,” Falconer reported. “The reality is that we have yet to find that last bridge to an agreement that we need to secure modalities (rules). It would be a grave error, in my view, to imagine that we can take much time to find that bridge.”
Lamy responded with a plea to politicians and negotiators heading to Hong Kong. He suggested the December meeting be used to set definite dates for agreeing to the rules in 2006 and then writing the detailed schedules to put them into effect by another date fixed in Hong Kong.
The optimism mixed with a sense of urgency for more compromise found two different reactions in Canada’s farm community.
Saskatchewan farmer and Agricore United director Alanna Koch, vice-president of the Canadian Agri-Food Trade Alliance, said she took heart from the chair’s assessment.
“It was what we expected,” she said. “We are disappointed that a deal will not be made in Hong Kong, but we see hope there that the level of ambition will be reaffirmed and firm deadlines set. He set out some areas where he sees convergence happening and pointed to areas where we need to do more. I think it was encouraging.”
She told the annual meeting of Grain Growers of Canada last week that “the worst deal would be no deal” because it would lead to more American one-on-one agreements with trade partners that leave Canadian producers out.
For Canadian Federation of Agriculture president and Manitoba farmer Bob Friesen, the greatest optimism in Falconer’s report came from the fact that it is obvious no deal will be rushed and reached at Hong Kong.
Friesen was worried that in the rush to get a deal, agreements will be signed that undermine Canadian supply management protections and the Canadian Wheat Board monopoly.
“I think we are better off having a bit more time to convince other countries that Canada’s domestic marketing solutions do not hurt them and, if adopted, could help them,” he said.
