Released on October 27, 2005
The Government of Saskatchewan said today that it continues to press Ottawa for WTO rules that lead to meaningful reductions in trade-distorting subsidies, especially by the European Union and the United States.Agriculture and Food Minister Mark Wartman said recent proposals by the United States and the European Union to cut trade-distorting subsidies are a step in the right direction, but significantly more is needed.
"Saskatchewan farmers depend on access to world markets for much of their production," Wartman said. "We export more than three-quarters of our agricultural production."
Wartman said the proposals currently on the table take only limited steps to make real cuts to subsidies – and they give the U.S. and the E.U. the ability to change how existing subsidies are categorized. If accepted, he added, the change in classification would protect U.S. and E.U. subsidies from future trade action and meaningful reductions.
"Saskatchewan farmers need our federal minister to ensure that they get trade rules that allow them to compete fairly in international markets," Wartman said. "We need to see a real commitment to reduce agricultural subsidies from the world's major trading nations."
Wartman added that he is also disappointed the U.S. and E.U. continue to pursue the elimination of export monopolies for state trading enterprises like the Canadian Wheat Board. Any subsidies related to state trading enterprises have already been eliminated, and there is no evidence that the Wheat Board distorts trade, only that it is an effective marketer for Western Canadian farmers.
Wartman said he is consulting with a producer advisory committee, which is helping the government develop a cohesive Saskatchewan position that may both challenge and support federal Agriculture Minister Andy Mitchell in developing Canada's response to the proposals.
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| Scott Brown Agriculture and Food Regina Phone: (306) 787-4031 |