(OTTAWA) – A new working paper issued by WTO Agriculture Chair Crawford Falconer shows some progress on issues of importance to Canadian farmers. The paper, released January 4, focused on export competition, domestic support and market access issues. The Canadian Federation of Agriculture (CFA) believes Falconer has taken some positive steps on market access and domestic support. However the CFA is also concerned there was no similar movement on sensitive products.

On market access CFA is pleased to see Falconer recommend the complete elimination of in-quota tariffs over a five year period.  The previous WTO modalities text had focused on reductions and possible elimination of some in-quota tariffs, but never explicitly addressed the need for complete elimination within a defined time frame. Other countries use in-quota tariffs to extensively limit access into their markets. Canada already has low in-quota tariffs and has been fulfilling its market access obligations under the previous trade agreements.

“The elimination of in-quota tariffs would provide a definite market access boost, and more profitable market access, for our agricultural exporters – particularly our hard-hit livestock sector,” said Bob Friesen, CFA President. “And as well as helping our exporters it emphasizes the level of access our own sensitive commodities already give other countries into our market. It would be a victory and a vindication for the Canadian balanced trade approach.”

Concerning domestic support Falconer included new provisions related to the level of cuts and the implementation period.  Under those provisions Canada would not be required to make a cut in aggregate measure of support (AMS) spending on the first day of implementation. However the major spenders on domestic support – the US, EU, and Japan – would be subject to a larger 30 per cent initial cut.

“The CFA applauds Falconer’s efforts to recognize who the big spenders are and penalize them accordingly,” said Friesen.

However CFA was disappointed to see little change from the original modalities text on the issue of sensitive products. The text does not give Canada the room to adequately protect and maintain its supply-managed sectors. Under the current text Canada would still only be allowed to protect 4-6 per cent of dutiable tariff lines as sensitive and would have to increase import quotas for any commodities that did not implement their full required tariff cuts. CFA had hoepd to see more flexibility and some clear text that would allow Canada to retain the use of special safe guards for certain product lines. CFA was also concerned to see the paper suggest the complete elimination of state trading enterprises (STEs). CFA believes the choice to establish an STE is an internal decision that should be made by farmers and their governments, not the WTO.

“Slowly we are seeing real progress in these trade talks. We have moved closer to a good outcome for our exporters, now we need to push for movement for our sensitive sectors,” said Friesen. “The CFA will continue to work with Canadian negotiators to get a good deal for all Canadian producers in every sector.”

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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.