NEWS RELEASES
CANADA AND THE UNITED STATES REACHAGREEMENT IN PRINCIPLE ON SUGAR
August 29, 1997 No. 136
CANADA AND THE UNITED STATES REACH
AGREEMENT IN PRINCIPLE ON SUGAR
Canada and the United States have reached an agreement in principle that
guarantees Canadian access to U.S. markets for sugar and sugar-containing
products, International Trade Minister Sergio Marchi and Agriculture and Agri-Food
Minister Lyle Vanclief announced today.
The United States has agreed to provide Canada with guaranteed access for a
minimum of 10 300 tonnes of refined sugar and 59 250 tonnes for sugar-containing
products. Canada can also compete for the remaining portion of the global Tariff
Rate Quota (approximately 7500 tonnes of refined sugar).
In return, Canada will not challenge the continuation of the U.S. Re-Export
Program for Sugar-Containing Products while the agreement is in effect.
"This agreement ensures a stable, predictable trade environment in an important
export sector that employs more than 6000 Canadians," said Mr. Marchi. "It also
removes a stumbling block in our overall trade relations."
"The United States severely restricted access to its sugar markets when it
implemented its commitments to the World Trade Organization in 1995," Mr. Vanclief
said. "This agreement provides a guaranteed level of access -- doubling the amount
of refined sugar our producers were able to export last year to the U.S. -- while
protecting many thousands of Canadian jobs in the sugar-containing products
industry."
Since April 21, 1997, Canada has been in a position to request a North American
Free Trade Agreement (NAFTA) dispute settlement panel to challenge the U.S. Re-Export Program for Sugar-Containing Products. Canada has always maintained that it
would prefer to negotiate a mutually beneficial agreement. In mid-August, the
United States Trade Representative's office made an offer that formed the basis
for the agreement reached today.
The agreement was reached through close co-operation and consultation with the
provinces and Canada's sugar industry, and has broad support across the country.
Either party may terminate the agreement on six months' notice. If the agreement
is terminated, Canada would again be in a position to request a NAFTA dispute
settlement panel ruling on the U.S. Re-Export Program.
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For further information, media representatives may contact:
Leslie Swartman
Director of Communications
Office of the Minister for International Trade
(613) 992-7332
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
Vern Greenshields
Press Secretary
Office of the Minister of Agriculture and Agri-Food
(613) 759-1020
This document is also on the Department of Foreign Affairs and International
Trade's Internet site: http://www.dfait-maeci.gc.ca
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