Voluntary Report - public distribution

**Date:** 7/23/2004

**GAIN Report Number:** CA4051

CA4051

**Canada**

**Agricultural Situation**

**This Week in Canadian Agriculture, Issue 25**

**2004**

**Approved by:**

![](media/image1.wmf)Hugh Maginnis

U.S. Embassy

**Prepared by:**

Christina Patterson

**Report Highlights:**

Prime Minister Paul Martin Announces New Federal Cabinet

Prime Minister Martin Impatient with U.S. Ban on Live Canadian Cattle
Exports

Canadian Farm Groups Comment on the Draft WTO Framework

Manitoba Crop Update

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Ottawa \[CA1\]

\[CA\]

**PRIME MINISTER PAUL MARTIN ANNOUNCES NEW FEDERAL CABINET:** On
Tuesday, July 20, 2004, Prime Minister Paul Martin announced his new
federal cabinet. Mr. Andy Mitchell was appointed Minister of Agriculture
and Agri-Food, replacing Bob Speller, who was defeated in the federal
election on June 28, 2004. Mr. Mitchell previously served as Secretary
of State for Parks and then Secretary of State for Rural Development and
the Federal Economic Development Initiative for Northern Ontario in
Prime Minister Chretien's government, and Minister of Indian Affairs and
Northern Development in Prime Minister Martin's government prior to the
June 28^th^ election. Mr. Mitchell represents the riding of Parry
Sound-Muskoka in Ontario, and has been a sitting Member of Parliament
since 1993. The Honorable Wayne Easter was appointed the Parliamentary
Secretary to the Minister of Agriculture and Agri-Food. Mr. Easter has
represented the riding of Malpeque, Prince Edward Island since 1993. Mr.
Easter has an extensive background in agriculture, including serving as
president of the National Farmers Union for 12 years. The Honorable
James Peterson remained Minister of International Trade, a position
Prime Minister Martin originally appointed him to in December 2003. The
Honorable Mark Eyking moved from the position of Parliamentary Secretary
to the Minister of Agriculture and Agri-Food to the position of
Parliamentary Secretary to the Minister of International Trade with
special emphasis on emerging markets. The Honorable Reg Alcock remained
the Minister responsible for the Canadian Wheat Board. The Honorable
Ralph Goodale remained Minister of Finance.

**PRIME MINISTER MARTIN IMPATIENT WITH U.S. BAN ON LIVE CANADIAN CATTLE
EXPORTS**: During a breakfast at the Calgary Stampede, Prime Minister
Martin voiced his displeasure at the ongoing trade ban by the United
States to the import of live Canadian cattle. The border has been shut
to live cattle exports from Canada since the discovery of BSE in a cow
in Alberta on May 20, 2003. Prime Minister Martin clearly stated that
the border should be reopened by now and laid the blame at the feet of a
small faction of the U.S. beef industry for injunctions and litigation,
which has delayed the process. Prime Minister Martin stated that he
believed the Canadian government and the U.S. administration were making
progress towards the reopening of full trade. These comments come at a
time when the Canadian cattle industry is facing the largest calf crop
in 25 years, set to come to market in the fall, and a possible massive
cull of older cows if the U.S. border does not reopen as of the Labor
Day weekend in September.

**CANADIAN FARM GROUPS COMMENT ON THE DRAFT World Trade Organization
(WTO) FRAMEWORK:** Following the release of the draft WTO framework,
Canadian farm groups waded in with their comments. The Canadian
Agri-Food Trade Alliance (CAFTA) was pleased with the draft, stating
that the draft was a positive step forward and if accepted by WTO
members, the draft would form the foundation for the next steps towards
a conclusion to the negotiations. CAFTA was pleased with the elements in
the framework that would allow for the negotiation of rules that would
end all forms of export subsidies, make substantial reductions in trade
distorting domestic support, and that will substantially increase market
access for all products. The Grain Growers of Canada (GGC) expressed
very similar sentiments to CAFTA. The GGC felt the draft was positive
step forward, though did not liberalize their sector as aggressively as
the GGC would have liked to send, but felt the draft was a good step
towards accomplishing many trade liberalization goals. The Canadian
Federation of Agriculture (CFA) was disappointed with the draft. The CFA
felt the draft failed to address the inequities created by the last WTO
round. The CFA believes that the new draft will only hurt Canada's
export and domestic supply-managed agriculture sectors. The draft would
undermine Canada's ability to maintain its orderly marketing systems,
while providing no guarantee of increased global market access for
Canadian exporters. The CFA has taken the position that the Canadian
negotiators should not sign the draft in its current form and that a lot
of work would have to be done to make the draft even remotely
acceptable. Canada's supply-managed sectors expressed very similar
sentiments as the CFA. Canada supply-managed sector is made up of dairy,
poultry and egg producers, who have outright rejected the draft. The
SM-5 claims the draft jeopardizes the fundamental pillars of supply
management. The new text is calling for a reduction in over-quota
tariffs, which the SM-5 does not want reduced. The SM-5 also feels that
the text does not address the failings of the Uruguay Round, rather it
widens the gap between countries' abilities to compete in the world
market.

**MANITOBA CROP UPDATE:** According to the provincial department of
Agriculture in the ***Southwest*** region most cereal crops are 70-80%
headed out, canola is in the early bloom stage and flax is just starting
to flower. Corn and sunflowers are developing well, but are still
slightly behind their normal growth stages for this time of year.
Grasshoppers are causing damage in some areas. In the ***Northwest***
region roughly 70% of the wheat fields are headed out. Most canola
fields are in stage between bolting and flowering. In the ***Central***
region hot, humid weather conditions have resulted exceptional crop
growth, especially in corn, soybeans and field beans. Spring wheat,
barley and oat crop staging ranges from boot to heading with some of the
earliest fields beginning to flower. Canola is in the bolting to full
flower stage. The humid weather is contributing to disease development.
Grasshoppers are also becoming a problem. In the ***Eastern*** region
most cereal crops are in the shot blade to heading stage, while 75-80%
of canola is flowering. Soybeans, corn and sunflowers are in the
seedling and vegetative stages. In the ***Interlake*** region rapid crop
growth and development has occurred as a result of the heat and
moisture. Spring wheat is 40% fully headed, barley 50% and oats 30%.
Canola is variable and corn and soybeans are looking better weekly.

**Find FAS on the World Wide Web:** Visit our headquarters' home page at
[http://www.fas.usda.gov](http://www.fas.usda.gov/) for a complete
listing of FAS' worldwide agricultural reporting.

Recent Reports from FAS/Ottawa:

+----------------+---------------------------------------+------------+
| Report Number  | Title of Report                       | Date       |
+----------------+---------------------------------------+------------+
| ## CA5050      | This Week in Canadian Agriculture,    | 7/16/2004  |
|                | Issue 24                              |            |
+----------------+---------------------------------------+------------+
| ## CA4049      | This Week in Canadian Agriculture,    | 7/09/2004  |
|                | Issue 23                              |            |
+----------------+---------------------------------------+------------+
| ## CA4048      | This Week in Canadian Agriculture,    | 7/02/2004  |
|                | Issue 22                              |            |
+----------------+---------------------------------------+------------+
| ## CA4047      | Grain and Feed Monthly Update         | 6/30/2004  |
+----------------+---------------------------------------+------------+
| ## CA4046      | This Week in Canadian Agriculture,    | 6/25/2004  |
|                | Issue 21                              |            |
+----------------+---------------------------------------+------------+
| ## CA4044      | This Week in Canadian Agriculture,    | 6/18/2004  |
|                | Issue 20                              |            |
+----------------+---------------------------------------+------------+
| ## CA4045      | Off to the Polls Canada Goes:         | 6/18/2004  |
|                | Implications for Agriculture          |            |
+----------------+---------------------------------------+------------+
| ## CA4043      | This Week in Canadian Agriculture,    | 6/10/2004  |
|                | Issue 19                              |            |
+----------------+---------------------------------------+------------+
| ## CA4042      | This Week in Canadian Agriculture,    | 6/04/2004  |
|                | Issue 18                              |            |
+----------------+---------------------------------------+------------+
| ## CA4041      | Dairy, Semi-Annual                    | 6/03/2004  |
+----------------+---------------------------------------+------------+
| ## CA4040      | This Week in Canadian Agriculture,    | 5/28/2004  |
|                | Issue 17                              |            |
+----------------+---------------------------------------+------------+
| ## CA4039      | This Week in Canadian Agriculture,    | 5/21/2004  |
|                | Issue 16                              |            |
+----------------+---------------------------------------+------------+
| ## CA4038      | Provisional Anti-Dumping Duties on    | 5/18/2004  |
|                | U.S. Frozen Pizza                     |            |
+----------------+---------------------------------------+------------+

VISIT OUR WEBSITE: The FAS/Ottawa website is now accessible through the
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FAS/Ottawa office can be reached via e-mail at: <agottawa@usda.gov>