WORLD TRADE
ORGANIZATIONG/AG/NG/W/63
28 November 2000
(00-5096)
Committee on Agriculture
Special SessionOriginal:  English/
                French
FOURTH SPECIAL SESSION OF THE COMMITTEE ON AGRICULTURE
15-17 NOVEMBER 2000
Statement by Canada
Market Access (G/AG/NG/W/54)
Canada welcomes the fact that several countries are contributing to the discussion on market
access, including the Cairns Group proposal now before us.  We believe that the ideas set out in
Canada's market access proposal, that we presented in June, offer more targeted and practical
approaches to achieving real and substantial market access improvements for all agriculture and food
products.
Canada believes that a variety of techniques will be the best approach to obtaining improved
market access quickly as a result of these negotiations.  As we have said before, obtaining improved
market access is a fundamental objective in these negotiations for the Canadian agriculture and agri-
food sector.  In doing so, Canada seeks to level the playing field, reducing disparities in the amount of
access provided to markets, for different products, and across different Members.  Canada's marketaccess proposal set out a number of practical and targeted approaches that we believe would result in
ambitious and substantial improvements in market access, benefitting producers and processors in
developing and developed countries alike.
Canada recognizes that issues of concern to developing countries must be addressed in these
negotiations, and that improving market access, providing technical assistance and enhancing
capacity, so that developing countries can realize the opportunities provided by the multilateral
trading system is absolutely critical.
Like others, Canada has called for an ambitious approach to tariff reductions but Canada's
market access proposal takes account of the fact that there are significantly different tariff regimes in
place for different products.  A tariff cutting formula will address the key issue where products facesingle stage tariffs.  In this area, Canada has proposed that all tariff lines where a single stage tariff
exists should be subject to a formula reduction resulting in a substantial reduction in tariffs and a
greater harmonization of tariff levels.  Tariff es calation between primary and processed forms of the
same product should be eliminated.
Also, Canada proposes that if the formula would not result in real access, as an option, a tariff
above a specified level should be accompanied by a specified quantity of duty free in-quota access.
Our objective is to ensure that, one way or another, the result provides for substantial improvements
in market access opportunities that exporters can benefit from in the near term, right from the start of
the next implementation period.
Where tariff quotas remain, effective liberalization will depend largely on the size of the
minimum access commitments, the level of the in-quota tariff, and how the TRQs are administered.
Several proposals have called for increases in tariff quota volumes and additional or strengthenedG/AG/NG/W/63
Page 2
rules and disciplines on tariff quota administration.  However, Canada 's proposal specifically calls
for tariff quota volumes to provide duty free access equal to at least a common minimum percentage
of current consumption on a product basis.  We believe that this is, in fact, a realistic and practicaloption for improving market access.  Canada will continue to seek rules that will address directly the
disparities in access levels offered under tariff quotas, as well as improved disciplines to ensure that
tariff quotas provide useable access.
Canada's approach also encompasses situations where industry groups in several countries are
working together to seek greater liberalization in th eir sectors.  As a complement to formula and rules-
based approaches, we believe that such sectoral initiatives could contribute to a more ambitious
market access result for developing and developed countries alike.
We agree with the Cairns Group that better market access conditions in a world free of trade
distorting subsidies is essential for the development of developing countries.  This is true, not just of
access to a limited number of developed country markets, but more generally.  Canada believes that
the objective of our work here should be a more open, rules-based multilateral trading system where
the same rules apply to all players.  We recogniz e that there is a need for special and differential
provisions to help developing countries adjust to, and take advantage of, such a trading system.However, we believe that a fair and market orient ed agricultural trading system should include all
countries, and that such an inclusive approach will benefit all.
Canada has looked to the Secretariat's background paper on the trade performance of
developing countries, G/AG/NG/S/6, to identify how our approach to improving market access can
also benefit developing countries.
In that paper, we see facts which we believe should be used to guide our negotiating efforts,
and the approaches that we pursue.  A few of these facts are notable:
- after the end of the Uruguay Round, agricultural exports from developing countries
grew faster than in previous years.
- agricultural exports of developing countries grew more rapidly than those of
developed countries, increasing their share in world agricultural exports.
- developing countries' import markets are becoming increasingly important as
destinations for the agricultural exports from other developing countries.  This result
should not be surprising because the experience of most countries has been that trade
first develops with neighbouring countries, and not with more distant markets.
- the share of developing countries as a destination for exports by other developing
countries has increased from 39 per cent to 43 per cent from 1990 to 1998.
The results of this study suggests two things to us.  Firstly, we agree with Brazil's assessment
that progress has been modest and that much more needs to be done to open markets to exports from
developing countries, and that further reform is both necessary and urgent.  However, in seeking that
reform, the study also suggests to us that we must pursue it broadly, improving market access to both
developing and developed countries alike.
Another piece of evidence in this direction is provided by the Secretariat background paper on
Tariff Information on Agricultural Products and Markets of Interest to Developing Countries,
G/AG/NG/S/ 14.  Developing countries were asked to identify the products of export interest to them,
and the export markets of interest for each of those products.  Each developing country Member wasG/AG/NG/W/63
Page 3
limited to identifying five products of interest.  In total, the Secretariat compilation of the results
identified 210 tariff items at the six digit level, and a total of 52 markets of export interest among the
210 products.
By any standard, this indicates that the export market interests of developing countries are
very broad in terms of product coverage, and very broad in terms of market coverage.  The 210 items
identified by developing countries in S/14 cover 30 per cent of the six digit headings in the
agricultural chapters of the Harmonized System.  Of the 52 markets of export interest, 40 identify
themselves as developing countries.
This means that the negotiations must seek significant improvements for all agricultural and
food products, in all markets.
At the September meeting, the Dominican Republic presented a market access proposal on
behalf of a number of developing countries that called for real improvements, and not just
improvements which might look good on paper.  We share their objective.  Canada agrees with the
need to reduce obstacles in TRQ administration; use a common end point based on domesticconsumption for establishing the size of  access commitments; base the resulting tariff quotas on
specific products rather than aggregated comm odity groups; and address tariff escalation between
primary and processed products.
Canada recognizes that issues of concern to developing countries must be addressed in these
negotiations, and that improving market access to enable developing countries to realize the
opportunities provided by the multilateral trading system is crucial.
A stable and predictable system of preferences in favor of least developed countries also plays
an important role in improving their market access opportunities.  They can  contribute towards theirdevelopment, complementing other initiatives related to technical assistance and capacity building.
This is particularly important for least developed countries.
Canada has a broad system of preferences in favor of developing countries, especially the
least developed countries.  Duty free treatment is provided for virtually all agricultural products.
These preferences are stable and non-conditional.  In August, Canada announced the expansion of
duty free treatment for least developed countries to another 570 tariff lines, of which over 300 areagriculture and food products.  We also implemented liberalized rules of origin, in order to provide
the poorest countries with greater opportunity to utilize the enhanced access to the Canadian market.
When viewed as an overall package, the preferential treatment provided by Canada allows exceptional
access to tropical agricultural products and processed foods.
In summary, Canada is seeking substantial improvements in market access for all agriculture
and food products in all markets.  We believe this objective is beneficial to all Members.  However,
we recognize the need for special and differential treatment, together with technical assistance and
capacity building, to assist developing countries in adjusting to a more open and rules-based
multilateral trading system with rules that apply equally to all.  Canada's market access proposal putsforward our thinking on practical, effective measures to achieve that objective.
__________