To be credible at the world trade bargaining table, Canada must be prepared to eliminate tariffs that protect supply-managed systems, says a representative of a Canadian poultry processors’ organization.
“To argue at the (World Trade Organization) that Canada needs high tariffs to protect its poultry industry forever is taking the position that the Canadian poultry industry can never be competitive,” said Robert de Valk, general manager of the Further Poultry Processors Association of Canada.
“We don’t agree with that,” he told MPs last week.
He insisted he is not anti-supply management.
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But de Valk said the main problem with developing more processed poultry product exports to the United States is the price of Canadian raw product.
He said Canada cannot credibly go to world trade talks and argue for liberalization in export products but continue to insist on protection for import-sensitive products.
He said it would simply give other countries more excuse to fight for protection of their own against Canadian products.
“This (continued high tariffs) is not only a difficult position to sustain but also one that would invite other countries to make similar special case claims for selected industries,” de Valk told members of the Commons agriculture committee at an Oct. 29 hearing on trade issues. “If this were to happen, Canada’s objective to increase agricultural exports would likely be compromised.”
He said the issue of reducing high tariffs will be a key issue at the next round of trade negotiations.
“If this occurs, Canada should be ready to accept the gradual phase-out of these tariffs so that a suitable transition period is put in place,” he told MPs. “Since the value of the Canadian dollar is providing considerable protection, the WTO is a good time to begin this process.”
However, when skeptical Liberal MPs said he might be simply trying to undermine supply management to get cheaper raw products for his members to the disadvantage of farmers, de Valk insisted he did not expect Canada to make such a move as long as other countries continue to protect their markets.
He said he did not expect to see a tariff-free world in poultry products until the year 2018 “or so.”
