WORLD TRADE
ORGANIZATIONG/AG/NG/W/23
11 July 2000
(00-2821)
Committee on Agriculture
Special SessionOriginal:  English/
French
SECOND SPECIAL SESSION OF THE COMMITTEE ON AGRICULTURE
29-30 JUNE 2000
Statement by Canada
Intervention to introduce Canada's negotiat ing proposal on market access (G/AG/NG/W/12)
It is with pleasure that I present Canada's proposal on market access.
Although Canada has chosen at this meeting to present ideas on the questions of market
access and, with our colleagues from the Cairns Group, on export competition, we judge that the three
pillars of the Agreement on Agriculture are important.  It is essential that we pursue the reform
process initiated during the Uruguay Round on all fronts; market access, export competition and
domestic support.
The fundamental objective of our proposal on market access is to achieve real and substantial
improvements in access for all agricultural and food products. Canada's agri-food industry has clearly
expressed the importance of this objective during the consultations undertaken by the government
when developing its initial negotiating position.  It is an objective that we also share with our Cairns
Group partners.
In these negotiations we want to address the pr oblems that affect our own exporters, as well
as those of all WTO member countries.  To this end, we have outlined options that would result in
concrete way, to improvements in market access as quickly as possible and would eliminate the
inequities between countries and products.
The Uruguay Round made important strides in strengthening the rules governing market
access for agricultural products.  For example, it eliminated almost all quantitative import restrictions,
led to the binding of all agricultural tariffs, and established the concept of minimum access.  However,
in practical terms, the effect of these changes has been modest, and a number of problems remain.
Canada proposes that the diverse issues facing us in market access need to be tackled by
distinct approaches for single stage tariffs, and for two stage tariffs and tariff quotas, that get at the
root of the problems.
We use the term "single stage tariffs" to refer to products for which there is one tariff that
determines the access conditions for a product.  We have used the term "two stage tariffs" to describe
products for which there are two tariff rates – in-quota and out-of-quota.
The key problems we see with respect to single tariffs include the fact that high tariffs which
restrict or prevent market access remain for some products; tariff escalation puts processing industries
in exporting countries at a disadvantage; and, disparities in tariff levels causes discrimination betweenG/AG/NG/W/23
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competing products.  Canada proposes that we address these problems directly through a formula
approach that will substantially reduce both the level of single stage tariffs and their dispersion.
We also propose that if the final bound level resulting from the formula does not result in real
access, there should be a requirement that any final bound tariff above a certain level be accompaniedby a duty-free tariff quota.
Where two-stage tariffs and tariff quotas currently exist, the volume of access provided by
tariff quotas varies widely between WTO Members and across products.  In addition, high in-quota
tariffs and certain tariff quota administration policies often have the effect of restricting or preventing
the access which is supposed to be granted through the tariff quota.  Canada proposes that we address
these problems by expanding all tariff quotas to reach at least a minimum common level expressed asa percentage of current consumption of commonly defined agricultural products.  In order to ensure
that in-quota access is tangible, in-quota tariffs should be eliminated.
We also seek improved rules on how countries establish tariff quotas by product.  These
should be provided on a product basis, for example, for beef and for pork, and not for meat.  Tariffquotas should not be sub-divided into smaller volumes of more narrowly defined products, such as
separate commitments on different cuts of beef or pork.  Establishing tariff quotas on a product basis
would allow markets to determine what is imported within quota.
Some countries might prefer to focus on over-quota tariffs, but Canada is not convinced that
this will provide real access in the near term.  Canada will insist that any discussion of over quota
tariffs be in the context of a clear commitment by all participants to improve the real access offered
through tariff quotas and reduce inequities, so that access is provided in the near term, and not
something to hope for in the long term.
In order to secure this improved access, better rules are also needed for tariff quota
administration, to ensure that administrative practices do not frustrate the agreed access.
These ideas, taken together, would provide a significant improvement in real, useable market
access for products subject to tariff quotas.
In order to operationalize our proposal to expand tariff quotas to at least a common level, we
will need information from Members on their consumption of basic agricultural products in a recent
period.  We recommend that the Secretariat be requested to begin collecting that information from
Members.  The information should come from Memb ers, with the Secretariat simply compiling the
data submitted.
Our proposal also seeks to address situations in which industry groups in several countries are
working together to seek greater liberalization in their particular sectors.  As one example, many
governments in this room will be aware that the oilseed and vegetable oil industries in several
countries are pursuing a zero-for-zero initiative in that sector on a voluntary basis.
Canada supports these industry-led initiatives, and we propose that possibilities for sectoral
trade liberalization be fully explored in these negotiations so that those Members interested in
participating can eliminate their tariffs on an MFN basis.
Finally, our proposal acknowledges that for food importing countries, increased market access
means an increased reliance on world markets to meet their food security needs.  We believe that an
open and well-functioning world market can make an important contribution to food security.  But we
also recognize that exporters need to be reliable suppliers.G/AG/NG/W/23
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Canada proposes that improved disciplines on quantitative export restrictions and export taxes
on agricultural products be an integral part of a substantial market access result.
In conversations this week, a number of developing country representatives have noted that
Canada's proposal does not contain a section on special and differential treatment.  This reflects thefact that we believe that our proposal addresses head-on many of the issues that affect developing
countries directly, such as tariff escalation and real access for all products.  However, we do recognize
that developing countries have special requirements and Canada is open to the concept of special and
differential treatment.  We hope to hear, over the course of this year, specific and concrete ideas from
developing countries about what they will need to smooth their integration into a fair and market-
oriented agricultural trading system.
In summary, Canada is seeking substantial improvements in market access for all agricultural
products as this would benefit all Members.  This is an objective we share with our Cairns Group
partners and others.  This proposal puts forward Canada's thinking on practical, effective measures to
achieve that objective.  We look forward to discussing these ideas with our trading partners as the
negotiations progress.
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