FEDERAL-PROVINICIAL-TERRITORIAL COMMUNIQUÉ

AGRICULTURE MINISTERS FOCUS DISCUSSIONS ON MOVING AGRICULTURE INDUSTRY FORWARD

Ottawa, March 3, 2005 – Ministers met to discuss a number of initiatives to assist the agriculture industry in moving forward in this challenging period of low and declining farm income. They also discussed yesterday's decision by a U.S. District Court to grant a preliminary injunction that effectively delays the opening of the U.S. border to Canadian live cattle under 30 months. The discussions were part of a scheduled mid-year meeting between federal, provincial and territorial Ministers of Agriculture in Ottawa on March 2-3, 2005.

Ministers expressed their disappointment over the U.S. District Court decision to grant a preliminary injunction to prevent implementation of the U.S. rule that would have allowed a resumption of U.S. imports of live cattle, other ruminants and a wider range of products derived from them. They vowed to continue their efforts to normalize trade between Canada and the United States, and to increase access to other international markets. Ministers agreed to maintain the current set-aside programs under the Repositioning the Livestock Industry Strategy announced on September 10, 2004, and to monitor the situation so that measures continue to respond to industry needs.

Ministers also discussed changes to feed regulations in line with the recommendations of the international team of experts on BSE. They agreed to work closely together to find solutions to the issue of disposal of specified risk materials (SRM) as quickly as possible. Ministers welcomed the announcement of $80 million in the Federal Budget for SRM disposal.

Recognizing the difficult economic conditions currently facing producers, governments continue to provide significant funding to address farm income challenges. Assistance to farmers reached an all-time high of $4.9 billion in 2004. The Canadian Agricultural Income Stabilization Program (CAIS) alone is paying out more than $1.3 billion a year for 2003, 2004, and 2005.

As referenced in the Federal Budget, Ministers committed to working together to find a better means of effectively engaging producers in joint management of business risk under CAIS, and to working towards sustainable solutions for future program years. Officials were directed to develop alternatives to the current CAIS deposit to be presented to Ministers at their annual meeting in July 2005, and a plan for consulting with industry. In the meantime, Ministers agreed to extend enrolment for the 2005 program year to May 31. Ministers agreed there is a need to deal with the deposit deadlines for the 2003 and 2004 program years. Details will be announced by March 31.

Ministers also discussed the need for progress on national poultry agreements; the challenges facing the grains and oilseeds sector; the status of GMO labelling; World Trade Organization negotiations on agriculture; trade matters such as the swine anti-dumping/countervail action; the need to deal with the trade irritants of bluetongue and anaplasmosis; and issues related to the pest control regulatory system in Canada.

Finally, Ministers discussed the Annual Review of the Agricultural Policy Framework, and committed to continue to work with industry to move the sector forward, and to build a strong and sustainable agriculture industry for the benefit of all Canadians.

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