Even a modest World Trade Organization deal that delivers on proposals already on the table would benefit the Canadian farm sector by at least $3 billion annually, the Canadian Agri-Food Trade Alliance (CAFTA) said in a report released this week.
“The increases in export value are a function of expanded export volumes and increases in commodity prices,” said the CAFTA report, released Feb. 5 in Ottawa.
“In addition, as these are primary commodities, a significant portion of the gains will be at the producer level. Canada will realize additional gains through value added processing for all commodities.”
Read Also
Alberta may eliminate marked fuel
Alberta may soon stop selling dyed gasoline and diesel.
The report was based on an analysis, conducted by the Guelph-based George Morris Centre, of the gains that could come from tariff reductions that WTO agriculture negotiations chair Crawford Falconer says would be in any final deal.
The report looked at eight commodities that have CAFTA memberships: beef, pork, wheat, canola, barley, soybeans, dry peas and sugar.
In every case, the George Morris Centre concluded that a reduction in global tariffs would increase trade, strengthen prices and help the Canadian industry.
The study suggested beef would be the biggest winner, with the value of beef exports increasing by as much as 80 percent or close to $1 billion.
It says oilseed export values could increase by close to 30 percent, or more than $1.3 billion.
And the value of pork exports could increase 26 percent to over $3.2 billion, said the study.
CAFTA noted that the hog industry is in an income and asset crisis.
“Securing an ambitious WTO agreement will help ensure Canada’s pork industry maintains its world-class standing,” said the alliance.
CAFTA, a trade liberalization lobby group, has been engaged in a campaign to convince the Conservative government that it should more aggressively pursue a trade liberalization deal.
It says Ottawa should spend less time trying to protect “sensitive product” tariffs that shield supply managed sectors from unfettered import competition and spend more time trying to win a tariff-reducing deal that will help exporters.
“The continuing absence of a WTO agreement is an ongoing burden on Canada’s export-dependent producers,” said the CAFTA report.
“Until an agreement is in place, these farmers are collectively incurring an opportunity cost of nearly $10 million a day.”
