HONG KONG – For Canadian trade minister Jim Peterson, it was a bad beginning to the week of world trade negotiations.
The Dec. 14 headline in the South China Morning Post, essentially the journal of record for last week’s World Trade Organization negotiations, read: “Canada ready to give away the farm.”
Although the headline was exaggerated, the story was based on an interview the minister had given to international reporters the previous day, hours before the talks formally began.
According to a transcript of the interview, Peterson said that in the interests of a deal, Canada was willing to cut actual support spending for farmers, “reduce tariffs on agricultural goods” and cut all financial backing from the Canadian Wheat Board.
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“And also we are prepared to reduce our support for agriculture in a way that is very real and would actually cut into our domestic support programs,” he said, according to the transcript.
Peterson also noted that Canada has opened its market to many duty-free goods from least developed countries, even though it has hurt Canadian producers.
“Has this caused certain problems for some of our producers? Of course it has,” he said. “Is it worth it as part of our contribution to global liberalization and development? Absolutely.”
He said in return for these commitments and actions, Canada hoped other countries also would announce concessions.
Some Canadian farm leaders in Hong Kong for the talks were outraged by the comments and Peterson found himself on the defensive. Once agriculture minister Andy Mitchell arrived, he took over managing the agriculture file.
But the farm leaders thought the damage had been done. In behind-doors briefings for Canadian lobbyists in Hong Kong for the WTO talks, Peterson was repeatedly challenged over his comments.
National Farmers Union president Stewart Wells took the most exception.
He said Peterson had essentially conceded defeat on many issues before the talks even began. He noted the minister made no exception for supply management when he said tariffs would be cut and he announced the end of financial support for the wheat board before negotiations are held over how to implement that earlier general commitment from the government.
In an interview, Wells said Peterson’s promise that the Liberal government is willing to sign a deal that cuts Canadian farm support levels seems perverse at a time when farm incomes are at record lows.
“I haven’t heard the Liberals campaigning in this election on a platform that they will cut farm supports but that is what Peterson was promising here,” said Wells. “They should tell farmers what they really are planning.”
Canadian Federation of Agriculture president Bob Friesen was less direct in his criticism to the trade minister but in a call back to Canadian reporters Dec. 14, he repeatedly referred to his faith in the work of agriculture negotiator Steve Verheul and the agriculture minister.
When asked later if failure to mention the trade minister’s role was a subtle vote of no confidence in Peterson, Friesen grinned and said: “No comment.”
Later, in his formal opening address to the WTO meeting, Peterson reverted to script on what Canada officially hopes will be the result.
“In agriculture, Canada seeks to rein in subsidies and to achieve market access,” he said. “Canada strongly supports both our supply-managed sectors and our broader community of agricultural exporters, including the Canadian Wheat Board.”
