Voluntary Report - public distribution

**Date:** 7/28/2006

**GAIN Report Number:** CA6030

CA6030

**Canada**

**Agricultural Situation**

**This Week in Canadian Agriculture, Issue 18**

**2006**

**Approved by:**

![](media/image1.wmf)Lisa Anderson

U.S. Embassy

**Prepared by:**

George Myles

**Report Highlights:**

GOC Expresses Disappointment at the Suspension of Doha Round Talks \*
Canadian Cattlemen See Opportunities Lost \* Canadian Pork Council Urges
GOC to Work Toward Resumption of Trade Talks \* CAFTA Lays Blame for
Doha Round Suspension \* GOC Meets with Farmers on Marketing Choice For
Wheat and Barley

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Ottawa \[CA1\]

\[CA\]

This Week in Canadian Agriculture is a weekly review of Canadian
agricultural industry developments of interest to the U.S. agricultural
community. The issues summarized in this report cover a wide range of
subject matter obtained from Canadian press reports, government press
releases, and host country agricultural officials and representatives.

*Disclaimer*: Any press report summaries in this report are included to
bring U.S. readership closer to the pulse of Canadian developments in
agriculture. In no way do the views and opinions of these sources
reflect USDA's, the U.S. Embassy's, or any other U.S. Government
agency's point of view or official policy.

**GOVERNMENT OF CANADA EXPRESSES DISAPPOINTMENT AT THE SUSPENSION OF WTO
DOHA DEVELOPMENT ROUND NEGOTIATIONS:** The Honourable David L. Emerson,
Minister of International Trade, and the Honourable Chuck Strahl,
Minister of Agriculture and Agri-Food and Minister for the Canadian
Wheat Board, have expressed their disappointment following the
suspension of the latest round of WTO negotiations. "Despite enormous
efforts by all WTO members and 11th-hour meetings between G6
participants, the gaps in negotiating positions proved to be too large
to bridge within the current time frame," said Minister Emerson. "This
is very disappointing for Canada and for all developed and developing
countries, given the significant economic benefits that could have been
achieved through an ambitious outcome to these negotiations. Canadian
agricultural producers and processors, as well as other manufacturers
and service providers, would benefit from the expanded market access
that the Doha Round was aiming to achieve," Emerson added. "Although
this is a serious setback, Canada remains committed to pursuing
opportunities and seeking a fairer international trade environment for
our agricultural producers and processors," said Minister Strahl. "We
will continue to advance the interests of Canada's agriculture sector,
including both supply-managed and export-oriented industries."

**CANADIAN CATTLEMEN SEE OPPORTUNITIES LOST:** The Canadian Cattlemen's
Association expressed deep disappointment with the suspension of the WTO
negotiations. "Every Canadian farmer or rancher who depends on
international trade has been dealt a serious setback," said CCA
President Hugh Lynch-Staunton, "The export-dependent sectors account for
nearly ninety percent of Canadian agriculture and the Doha Round of
negotiations was aimed at completing the unfinished work from the
Uruguay Round, which concluded in 1994. We have made a great deal of
progress since the Uruguay Round was completed," stated Lynch-Staunton.
"The Doha Round provides the opportunity to build on those gains made by
further cutting levels of production and trade distorting subsidies,
eliminating export subsidies and reducing barriers to market access. The
question now is whether we will be able to find the political will to
resume negotiations and finish the work that has been started."

**CANADIAN PORK COUNCIL URGES GOC TO WORK TOWARD RESUMPTION OF TRADE
TALKS:** Canadian Pork Council President Clare Schlegel told
*Farmscape.ca* that the breakdown of the world trade talks was a
disappointing setback. He said that the multilateral trading platform is
key to the pork industry having access to markets around the world.
It\'s key to having our agricultural policies in North America more
similar and to reduce distortions and make a fair and level playing
field around the world. Schlegel added that Canadian farmers,
particularly on pork and beef farms, have benefited significantly from
the Uruguay round, and they were looking forward to increased
opportunities. He urged the Canadian government to play an influential
role in kick-starting a resumption of the negotiations.

**CAFTA LAYS BLAME FOR DOHA ROUND SUSPENSION:** The Canadian Agri-Food
Trade Alliance (CAFTA), representing Canadian agricultural producers,
processors and exporters of more than 80% of Canadian international
sales, issued a press release blaming the G6 countries (Australia,
Brazil, European Union, India, Japan and the United States) for breaking
promises to the agriculture and food industry around the world,
abandoning those in the world's poorest countries, and putting politics
before progress in the Doha Round of WTO negotiations. In a news
release, CAFTA President Liam McCreery said that "When the round was
launched, WTO member countries pledged to address support and protection
in an ambitious manner to benefit the world economy. They continued to
make that pledge throughout the five years of negotiations, but not one
country has been willing to live up to the promise and break the current
negotiating impasse. Those of us who have pinned our hopes for the
future on reduced subsidies and access barriers now face an indefinite
continuation of unfair subsidies and closed markets. Without a complete
agreement, all of the commitments made so far are lost," said McCreery.
"Without a deal, export subsidies can continue increase. Trade
distorting domestic subsidies can continue with little discipline, and
countries can continue to impose (high) tariffs. As the world's 4^th^
largest (agricultural) exporter, Canada has a lot at stake in the Doha
Round." McCreery added that Canada should become the consensus builder
to bridge the differences and save the round.

**GOC MEETS WITH FARMERS ON MARKETING CHOICE FOR WHEAT AND BARLEY:**
This week, David Anderson, Parliamentary Secretary (for the Canadian
Wheat Board) to the Minister of Agriculture and Agri-Food and Minister
for the Canadian Wheat Board, re-stated the commitment of Canada's new
government to moving forward on dual marketing and chaired a Marketing
Choice Roundtable Meeting with western Canadian grain producers on July
27, in Saskatoon. "Canada's new government campaigned on the idea that
western Canadian wheat and barley producers should have a choice whether
to market their products through the Canadian Wheat Board," said
Parliamentary Secretary Anderson. "We must now develop the road map for
a successful and logical transition to a new marketing environment in an
open and transparent manner. In the process we will consult widely with
stakeholders." This meeting was designed to provide a preliminary
occasion to outline and discuss the options for dual marketing. No
decisions will be made at this time. According to Anderson, the main
purpose for the closed-door session was to examine how to best provide
farmers with the freedom of choice while maintaining a strong and
profitable Wheat Board.

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.

# 

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