WTO Negotiations Ask for Much
(August 3, 2004 -- Agriville) Western Canadian farmers are being
asked to give up a great deal and get little in return at the ongoing
World Trade Organization (WTO) negotiations in Geneva, the chair of the
CWB’s farmer-controlled board of directors said today. The text of the
draft framework agreement on agriculture was provided to WTO members last
night.
“This would be a very bad deal for western Canadian farmers,” said Ken
Ritter. “Instead of creating a more level playing field, farmers are
being asked to make significant concessions in exchange for vague promises
about reducing trade-distorting support in other countries.”
The draft text calls for specific restrictions on the CWB, including
giving up its government guarantees and putting the single desk on the
negotiating table, but sets only a general direction for reductions of
domestic support and trade distorting practices of other countries. This
comes despite the fact that agricultural support policies in the U.S. and
European Union are widely acknowledged to be major causes of trade
distortion.
“Farmers have the right to choose what kind of grain marketing system we
have,” Ritter said, noting that the draft text language pertaining to
the CWB reflects the position of Canada’s principal wheat competitors
– the U.S., the EU and Australia. “Our foreign competitors should not
be allowed to dictate the way farmers market their grain, especially since
we have always operated in full compliance with international trade
rules.”
Ritter also noted that any perception of unfair subsidies associated with
the CWB could be addressed through overall disciplines on export subsides,
export credits and domestic support – which would apply equally to all
WTO member countries.
“Western Canadian farmers aren’t unreasonable,” Ritter said. “We
have made major concessions in the past as a consequence of trade
negotiations. But to ask us to once again make concessions while big
players like the EU and U.S. continue to protect their bloated subsidy
systems is too much.”
Ritter said the CWB would continue to work with the Government of Canada
to ensure Western Canadian farmers’ concerns are addressed in this round
of negotiations. The CWB has been in contact with key government ministers
and senior Canadian trade negotiators throughout this process.
“We’re pleased with the Government of Canada’s continued support,”
Ritter said. “We urge them to stand by their commitments and not sign a
deal that would jeopardize the financial interests of Western Canadian
farmers.”
Controlled by western Canadian farmers, the CWB is the largest wheat and
barley marketer in the world. As one of Canada’s biggest exporters, the
Winnipeg–based organization sells grain to more than 70 countries and
returns all sales revenue, less marketing costs, to Prairie farmers.
Background
The pillars of the agriculture negotiations are: domestic support,
market access and export competition (export subsidies, export credit and
food aid).
What is on the WTO table is the elimination of export subsidies,
disciplines on export credit and food aid, disciplines on trade-distorting
domestic support.
The CWB has three government guarantees: on initial payments, on borrowing
and on export credit. The first two guarantees are domestic support
policies, which would be subject to the same disciplines agreed to on
domestic support for all WTO members.
On domestic support, the focus is on disciplines, not elimination. The
U.S. and EU have no intention of eliminating their own domestic supports
and have, in fact, structured their positions around the continued
operation of current domestic support measures.
The U.S. is attempting to negotiate domestic support provisions that may
not result in real spending cuts. In contrast, the new framework agreement
would result in an actual, significant loss for western Canadian farmers.
This is not only unbalanced, but inconsistent with principles of what
constitutes legitimate domestic support.
Disciplines negotiated on export credit would apply to the CWB’s export
credit guarantees.
The CWB supports the elimination of export subsidies. There are no export
subsidies involved in CWB operations.
There is no need for separate disciplines on state trading enterprises (STEs).
Singling out export STEs puts disproportionate restrictions on the CWB
alone.
The CWB is a fair trader. An April decision by the WTO wheat panel clearly
and unequivocally dismissed U.S. allegations against the CWB. The panel
ruled that the CWB has no incentive to act on any basis other than
commercial considerations.
“In view of the CWB’s current governance structure, which gives
western Canadian producers control over the CWB...the CWB has an incentive
to maximize returns to the producers whose products it markets,” read
the panel report, also noting that there is no day-to-day involvement in
CWB operations by the Government of Canada. |
