Newsroom
2003
March 5, 2003
Western Canadian farmers strongly defended in Geneva
Winnipeg – In a meeting in Geneva, Switzerland today, CWB representatives told Stuart Harbinson, Chairman of the World Trade Organization (WTO) agricultural negotiations, that the farmers of Western Canada strongly object to the draft agreement that was released last month.
The proposal targets western Canadian farmers’ grain marketing system while virtually ignoring the bloated, trade-distorting subsidies embraced by some of Canada’s competitors.
“This proposal doesn’t level the playing field for farmers,” said Larry Hill, farmer-elected director from Swift Current, Saskatchewan and head of the CWB’s delegation. “It only serves to punish western Canadian farmers for working together and competing successfully in international markets.”
Hill noted that, if fully implemented, the draft agreement would result in the elimination of the CWB by stripping it of its three foundations: price pooling, government guarantees and the single desk.
For example, one requirement would ensure that CWB exports "do not take place at a price less than the price paid (by the CWB) to domestic producers". This would effectively prohibit the CWB from using price pooling since a pooled price necessarily includes sales both above and below the final price.
Furthermore, by targeting organizations like the CWB that are addressed under Article XVII of the General Agreement on Tariffs and Trade, Harbinson’s draft agreement goes beyond the terms of the current Doha round of trade negotiations.
Hill stressed that numerous investigations, challenges and academic studies over the last decade have upheld the CWB’s status as a fair trader.
Hill said the CWB delegation appreciated the opportunity to provide Harbinson with an overview of how the CWB operates. He highlighted the fact that the CWB returned all sales revenue, less costs, directly to farmers and that it was a farmer-controlled organization.
“We had a frank and open discussion which we look forward to continuing in the future,” he said.
The CWB will continue to work with the Government of Canada, which has to prepare an official response to the draft agreement. The original deadline for the final draft was March 31, 2003, however it is widely believed it will take until September 2003 to reach agreement.
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 organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Rhéal Cenerini
CWB Communications Consultant
Winnipeg, MB
(204) 983-4497