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Canadian Wheat Board

Prairie strong, worldwide

Newsroom

2005

Canadian family farms are not bargaining chips: CWB Chair

Winnipeg - Canadian family farms must not be used as bargaining chips in the high-stakes negotiations towards a World Trade Organization (WTO) agreement, CWB chair Ken Ritter said today from Hong Kong, where important Ministerial meetings may set the tone for a deal.

"We all want to ensure that farming remains a viable option for future generations," said Ritter, a farmer from Kindersley, Saskatchewan. "We must make sure any WTO deal does not weaken Canadian farmers' ability to make a living from the land."

Trade-offs demanded by the Americans and Europeans at the WTO threaten Canadian family farms because they would end modest Canadian supports designed to empower farmers and enhance their income, he said. These include federal government guarantees of farmers' initial payments and CWB borrowings, as well as the entire CWB single-desk marketing system -- which leverages farmers' joint selling power to obtain market premiums.

"The frustrating part is that there is no legitimate trade policy reason for the CWB's marketing structure to be on the table," Ritter said. "The only reason is to further American political aims within their own country.

"They are misusing the WTO process, which is supposed to focus on removing the real causes of trade distortion, like their own massive farm subsidies. The CWB is not trade distorting -- as we've been forced to demonstrate over and over and over again."

CWB trade committee chair Larry Hill said the task in Hong Kong is to ensure the Canadian government remains firm in its resolve to keep U.S. and European pressure from eroding the viability of Canadian farmers.

"We can't let the Canadian family farm become another victim of American ambitions," said Hill, an elected CWB director who farms near Swift Current. "It makes no difference to the vast majority of WTO members whether the CWB is on the table or off the table. It is not a barrier to a new trade deal, nor does it pave the way for one.

"This issue is not even a flicker on the radar screen for most WTO members, yet Canadian farmers would pay a high price."

Hill said the CWB is also taking the opportunity, while in Hong Kong, to meet with representatives from WTO member nations and international farm groups, to clarify the issues and solicit support.

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 to over 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.

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December 14, 2005

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