Instant world condemnation of growing export subsidy use by the United States and Europe may avert a return to a farmer-damaging trade subsidy war, says Canadian agriculture minister Lyle Vanclief.
“I don’t think we are (headed for a trade war),” he said May 15. “The fact that everybody has jumped onto what has happened in the last week so heavily means they are conscious that everybody’s watching and that we’d best be careful.”
He said the two main players have been well warned.
“It can start to set a tone as we go into the ministerial (trade negotiation) round,” said Vanclief. “It is our hope that escalation can be avoided.”
Read Also
Farm Credit Canada partners with major Toronto innovation hub
A FCC parntership with MaRS Discovery District aims to solve technology problems in food supply chains.
Last week, Vanclief called European Community agriculture commissioner Franz Fischler to warn him against reacting to the U.S. announcement it will reactivate the export enhancement subsidy program for a chicken exports into targeted markets.
The EU also has been using export subsidies for selected products.
Vanclief said Fischler assured him the Europeans were acting within trade rules, but he also said he would try to resist further pressure for subsidies.
The previous week, American agriculture secretary Dan Glickman told him much the same thing.
“I pointed out to (Fischler) as I had to secretary Glickman that this is the type of action that starts the slippery slope and that we deplore that type of action,” said Vanclief. “I strongly suggested to him that not be the direction they continue to go.”
He said Fischler assured him he agreed it is not the direction the European Union wants to go either.
Both dairy and chicken producers have been feeling the brunt of American pressure to open up the border.
Chicken Farmers of Canada officials said last week the American decision to use subsidies to sell chicken to the Middle East could hurt the Canadian industry.
The chicken farmer lobby condemned the American decision, fearing a ripple effect on world market prices.
Dairy Farmers of Canada accused the Americans, not for the first time, of “trade hypocrisy” and trying to buy market share.
They noted the Americans also plan to use their Dairy Export Incentive Program to help sell nearly 30,000 additional tons of dairy product into world markets. The tonnage is carried over from earlier years when plans to use it were made but the money was not spent.
“They talk of fair trade as a theory but whenever U.S. interests enter the picture, it becomes a case of ‘do as I say, not as I do,’ ” DFC president Barron Blois said.
