Negotiations at the World Trade Organization

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Negotiations at the World Trade
Organization Alberta Barley Commission 15th
Annual General Meeting December 7, 2006
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• Background on WTO
• Introduction to CAFTA
• Importance of Trade to Canada
• Trade Today
• The Doha Round and Status of Negotiations
• Why an Agreement Matters what if there is no
  deal?

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Introducing WTO World Trade Organization

• created in 1995
• successor to GATT
• only international organization dealing with
  global rules of trade

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Introducing CAFTA Canadian Agri-Food Trade
Alliance

• 14 member organizations representing
• Majority of Canadian farmers
• All of Canadas important export commodities
• Primary and consumer level processors
• Input suppliers, marketers and exporters

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Introducing CAFTA Canadian Agri-Food Trade
Alliance
Over 90 of Canadian farm families depend on the
international market

• CAFTAs Members
• Account for 60 of Canadian farm cash receipts
• Conduct several billions of business annually
  and employ nearly half a million Canadians

CAFTAs Mission to advocate the liberalization
of global agriculture and agri-food markets
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The Importance of Trade

• 225,000 out of 250,000 Canadian farm families
  depend on trade
• Exports account for 40 of Canadas GDP
• 75 of wheat and durum is exported
• Export about 1.3 m tonnes of malting barley and
  an additional 815,000 tonnes of barley in the
  form of malt
• 20,000 prairie wheat and barley growers depend on
  trade
• 60 of canola is exported
• 44,000 hog and beef cattle producers depend on
  trade

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Trade Today

• Export subsidies
• Domestic support
• Market access

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Sensitive Products

• In Canada
• In the rest of the world - 1 meat
• - 2 grains

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Cairns Group

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The Doha Round

• Ambitious goals
• Elimination of export subsidies
• Substantial reduction of domestic subsidies
• Substantial improvement of market access
• Limited protection for sensitive products

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The Doha Round What Happened

• missed deadlines
• independent meetings
• suspended negotiations

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The Players

• U.S.
• EU
• Cairns Group
• G20
• G10
• G33
• Oslo Group
• Buick Group

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The Doha Round
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What if There Is No Deal?

• Between 1995 and 2000
• Brazils international market share increased
  from 2.8 to 3.9
• U.S. market share dropped from 12.9 to 10.2
• At the Same Time
• U.S. total domestic support spending increased by
  13.
• EU spending increased by almost 41.

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What About Bilateral Agreements?

• Give preferential access
• Detrimental to worlds poorest countries
• Lead to increased trade challenges
• Undermine faith in WTO

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The bright side?

• Behind the scenes negotiations
• Fireside chats
• Director General seeking support for re-launch of
  full negotiations

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What can we do?

• Canada must step forward and be part of the
  solution.
• Your future is at stake
• Contact
• Minister of Trade
• Minister of Agriculture
• Prime Minister
• Your Member of Parliament

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