Newsroom
2005
Resumption of European export subsidies bad news for Prairie farmers
Feb. 4, 2005
Winnipeg - Yesterday's announcement by the European Commission (EC) that it has granted export subsidies of $6.44 per tonne (€ 4.00) on 134 000 tonnes of soft milling wheat is bad news for western Canadian grain farmers, the chairman of the CWB's farmer-controlled board of directors said. Analysts are predicting this subsidy level will climb even higher in the weeks to come.
Ken Ritter noted the EC's announcement in January that it was resuming export subsidies had an immediate bearish impact on world wheat markets. "The EC's move has further depressed world grain prices, reducing returns for western Canadian farmers who, unlike their European counterparts, are not insulated from the realities of supply and demand," Ritter noted.
Prairie farmers are frustrated with the lack of progress being made by the Europeans in substantially reducing their bloated agricultural subsidies, he added.
"Despite repeated promises, the EC has not taken substantive steps to reduce agricultural subsidies," Ritter said. "The EC announcement underscores the importance of eliminating all export subsidies as quickly as possible."
Ritter also criticized the underlying hypocrisy of the EC, which has united with the U.S. in the current round of WTO talks in a joint effort to dismantle the CWB.
"Time and time again the CWB has been found to be a fair trader," Ritter said, noting export subsidies are the most trade-distorting form of agricultural support. "The EC's strategy is clearly to deflect attention from its own practices."
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based company sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Louise Waldman
Manager, Media Relations
Tel: (204) 983-3101
Cell: (204) 479-2451