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EMERGENCY DEBATE ON U-S FARM SUBSIDIES

Released on May 1, 2002

The provincial government put forward a motion to hold an emergency debate

in the Legislature today to discuss the damage expected from the new United

States (U-S) Farm Bill.



The Legislature requested federal Finance Minister Paul Martin,

International Trade Minister Pierre Pettigrew, Agriculture and Agri-Food

Minister Lyle Vanclief and Minister responsible for the Canadian Wheat

Board Ralph Goodale to come to Saskatchewan and outline to the assembly and

to Saskatchewan producers what they will do about the situation.



The American legislation allows huge increases in subsidies for U-S

farmers - $73.5 billion over the last decade. It also introduces 'country

of origin' labelling on food products, a non-tariff trade barrier. The

bill is expected to drive down prices for many commodities like pulse

crops, and drastically reduce market access to the United States market for

Canadian beef.



Deputy Premier and Minister of Agriculture, Food and Rural Revitalization

Clay Serby said the bill would be devastating to Saskatchewan and Canada.



"A large proportion of Canada's economy is dependant on agricultural

exports to the United States," Serby said. "Our federal government must

take immediate action to reduce the impact of increased subsidies and

reduced market access.



"Our federal government has responsibility for trade. They must ensure

trade regulations put Canadian farmers on a level playing field with their

competitors in world markets, or provide enough compensation to ensure

their survival until such rules are in place."



Serby says a calculation by Canadian farm groups of $1.3 billion in 'trade

injury' compensation for farmers does not include damage resulting from the

new subsidies and reduced market access contained in the new U-S Farm

Bill.



Saskatchewan expects a timely response from the federal government on

today's emergency debate.



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For more information, contact:



Scott Brown

Saskatchewan Agriculture, Food and Rural Revitalization

Regina

Phone: (306) 787-4031

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