News Release
FOR IMMEDIATE RELEASE
August 3, 2004 

(GENEVA) - The WTO framework agreement signed this weekend in Geneva contains both positive and negative elements for the Canadian agriculture industry. The Canadian Federation of Agriculture (CFA) recognizes the agreement as a step forward from previous draft proposals, but is disappointed with some aspects of the agreement.

“Minister Peterson, Minister Mitchell, chief agricultural negotiator Steve Verheul and the other negotiators worked very hard to achieve a framework which would permit the pursuit of Canada’s goals in the final negotiations,” said Bob Friesen, President of the Canadian Federation Agriculture (CFA). “I have nothing but praise for their efforts. But there is still a fight ahead of us. We still face major challenges in the future negotiations.”

Friesen and representatives of CFA member organizations were present in Geneva during the two weeks of negotiations. They explained their concerns with the initial draft text to the Canadian negotiators, and consulted with Agriculture and Agri-Food Minister Mitchell and Trade Minister Peterson regularly during the negotiations. CFA has three objectives in WTO trade talks: increasing global market access for Canadian producers, eliminating trade-distorting foreign subsidies, and protecting Canada’s right to maintain non-trade-distorting orderly marketing programs like the Canadian Wheat Board and supply management.

The framework agreement gives Canada latitude to negotiate an increase in market access. The agreement calls for greater reductions in domestic support for high spenders, and it calls for a negotiated end point for export subsidies. The agreement also dropped provisions from the first proposed text which threatened Canada’s ability to maintain effective orderly marketing for dairy poultry and egg products.

“On the positive side, that immediate threat to our orderly marketing system has been removed,” explained Friesen. “However, despite Canada’s objections, the agreement still calls for negotiations on monopoly powers in orderly marketing systems like the Canadian Wheat Board. The Wheat Board and supply management are effective marketing tools for Canadian producers that do not distort global trade. Canada will have to work hard to ensure its right to maintain these systems is not lost when the final details of this agreement are negotiated.”

CFA found parts of the framework sections on domestic support disappointing. While the framework calls for significant reductions for high spenders, there is a risk the final outcome could give the U.S. wide latitude to continue to provide substantial subsidies to its farmers, while severely limiting Canada’s ability to assist its producers in an income crisis such as the current BSE crisis.

The agreement does not contain final details for new international trade rules. Its purpose is to provide framework for negotiating the rules governing the use of domestic and export support for agricultural productions and for negotiating commitments for the improvement of market access for agricultural exports.

“The task before us is to continue to work with our negotiators and ministers to fill in the details in order to achieve a new set of global trade rules that respect our domestic interests, provide improved export opportunity for our products, create a level playing field in domestic support, ensure our right to maintain orderly marketing systems, and allow the effective operation of the Canadian Wheat Board,” said Friesen.

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Founded in 1935 to provide Canada's farmers with a single voice in Ottawa, the Canadian Federation of Agriculture is the country's largest farmers' organization. Its members include provincial general farm organizations as well as national and inter-provincial commodity organizations from every province. Through its members, CFA represents over 200,000 Canadian farmers and farm families.