GRAIN GROWERS OF CANADA | |
| EU AND U.S. SUPPORT - ELIMINATION OF EXPORT SUBSIDIES |
 |
| Les Producers De Grains
Du Canada |
by Cam Dahl, Executive Director Grain Growers of Canada
The Grain Growers of Canada (GGC) view recent progress at the World Trade Organization (WTO) negotiations with optimism. However, we have a growing concern that some Canadian positions are inhibiting the overall negotiations, as well as hampering the efforts of negotiating bodies like the Cairns Group.
The GGC believes that the time has come for Canada to examine aspects of our initial negotiating position, particularly in light of flexibility being shown by others at the negotiating table.
For example, the European Union (EU) has offered to set an end date for export subsidies, provided other countries make concessions on export competition issues.
One of the items that Europe has asked to be put onto the negotiating table in exchange, is increased disciplines on export state trading enterprises (STE), like the Canadian Wheat Board (CWB).
To date, the Government of Canada has stated that they are unwilling to even talk about these aspects of Canadian policy. We do not believe this is the right decision for Canadian farmers.
The elimination of export subsidies would have a significant positive impact on Canadian grain and oilseed farmers. Export subsidies are one of the most trade distorting practices in existence. They have been removed in virtually every other industry and it is time that they are eliminated in agriculture, as well. Analysis shows that European export subsidies cause over $400 million in damage to Canadian grains and oilseed farmers every year.
It must be noted that the benefits from the elimination of export subsidies would accrue to farmers from coast to coast, and not just production sold through the CWB.
Other countries have responded to the need for additional flexibility. The United States (U.S.) Trade Representative, Robert Zoellick, has stated that the U.S. is willing to support the elimination of the subsidy element of export credits, and to increase the disciplines on food aid. Ambassador Zoellick echoed the EU's call for increased disciplines on exporting STEs.
The removal of these trade distorting practices would be of significant benefit to all Canadian grains and oilseed farmers, over and above the benefit gained from the elimination of export subsidies.
" Is Canada's strident defense of the status quo
in the best interest of the majority of Canadian
Grain and oilseed farmers?"
This raises an important policy question "is Canada's strident defense of the status quo in the best interest of the majority of Canadian grains and oilseed farmers, all of whom would benefit from the elimination of export subsidies?"
It would not be in the best interest of our sector of agriculture if the elimination of export subsidies were blocked by Canada's unwillingness to negotiate with other WTO members.
The GGC, along with other members of Canada's export dependant sectors, have called upon the Government of Canada to review its negotiating position for potential areas of flexibility. We have specifically asked the Government to put this key policy question to existing advisory groups, like the food and beverage sectorial advisory group on international trade (SAGIT).
Flexibility by Canada on the export competition pillar would demonstrate significant leadership on the world stage. This would help drive the negotiations closer to an overall agreement, which is needed by all Canadian farmers who depend upon the world markets for the determination of prices as well as marketing opportunities.
Leadership by Canada on the export competition pillar, would also help ensure that we are included as part of the key negotiating groups that are determining the shape of the final agreement. The group consisting of the U.S., EU, Brazil, India, and Australia is one example that comes to mind. I believe that participation in these key negotiation sessions will be a critical way of promoting the interest of Canadian farmers as the talks progress.
To date, Canada has not been included in these talks, despite the fact that we are the world's third largest exporter and world's fifth largest importer of agriculture and agri-food products. This points to a growing isolation of Canada at the WTO. Canadian isolation in the negotiations is troubling and has the potential to result in key Canadian liberalization goals being missed. This would damage the future viability of our industry.
Canadian flexibility would also strengthen the efforts of our partners in the Cairns Group. The Cairns Group, along with the G-20 group of developing countries, has recently been charged with the development of a framework formula that would accomplish the Doha objective of substantial increases in market access. Canada must be an active participant in this process and an active supporter of our Cairns Group partners.
Resolution of this critical aspect of the negotiations will open the door to an overall agreement. Canadian farmers cannot afford to see Canada isolated from the talks that will lead to solutions. Participation and support for our Cairns Group partners will strengthen the proposal that is brought forward, making an agreement much more likely. Participation and support for our Cairns Group partners will help end the growing Canadian isolation and put us in a better position to meet our trade liberalization goals.
The GGC calls upon the Government of Canada to show real leadership on the world stage. We need Canada to step up to the negotiating table and aggressively pursue significant liberalization. We cannot afford our government to defend the status quo because of philosophical arguments. This would not be in the best interest of Canadian grains and oilseed farmers and would be detrimental to our industry's long term viability.