Minister Leads Canadians at Canada-U.S.-Mexico Meetings

AGRICULTURE/FISHERIES--Minister Leads Canadians at Canada-U.S.- Mexico Meetings

Meaningful progress has been made in addressing some of the concerns and issues arising from the new U.S. Farm Bill, said Ernest Fage, Nova Scotia's Minister of Agriculture and Fisheries. Mr. Fage is attending the 12th annual meeting of the Tri-National Agricultural Accord between senior agriculture officials from the United States, Mexico and Canada.

"The U.S. Farm Bill dominated discussion during a series of bilateral meetings on the first day of the conference, and most of the new joint state-provinces undertakings will focus on the that bill," he said.

Mr. Fage headed the Canadian delegation, which included representatives from eight Canadian provinces. Also attending were representatives from 25 U.S. states and 15 Mexican states, including Ann Veneman, U.S. secretary of agriculture, and Javier Usaviaga Arroyo, secretary of agriculture for Mexico.

The Tri-National Agricultural Accord meeting is intended to improve understanding and to strengthen collaboration in the agricultural sectors of the three neighbouring countries. The theme of the 2002 conference was Bio-security, Borders and Trade.

A report presented by federal officials from Agriculture and Agri-food Canada and the U.S. Department of Agriculture comparing farm support in the two countries showed that the overall levels are similar.

Disparities exist, however, for some commodity sectors, including grains and oilseeds. The highest U.S. subsidies prevail for grains, soybeans, sugar, cotton, peanuts and dairy production. With 90 per cent of Nova Scotia's agriculture accounted for by the horticulture, livestock, supply management sectors and mink, Mr. Fage said that U.S. farm support measures have a less drastic impact on the province.

"Nevertheless, some disparities could emerge if the use of ad hoc payments is not curtailed," Mr. Fage said.

The Canadian delegation focused on the expansion of trade distorting support previously unsubsidized crops, including apples, and the potential for additional ad hoc payments. The U.S. Farm Bill provides for a one-time ad hoc payment of $94 million US to apple growers.

"The American representatives were responsive to the Canadian presentations on the inappropriateness of this support in the case of apples," said Mr. Fage. "Hopefully the likelihood of further payments has been reduced, and we will continue to press this message."

A joint working group was established with New York state and other states regarding common challenges facing northeastern apple production and marketing.

Another issue of particular importance for Nova Scotia involves the potential of the new country-of-origin labelling regulations mandated by the bill to harm Canadian livestock and fish export. Mr. Fage said that a joint U.S. states/Canadian provinces working group was established to focus on minimizing the disruptions to trade. A separate working group was established between Canadian provinces and Mexican states to co-ordinate representations regarding the pending regulations. Mr. Fage said that no one is opposed to country-of-origin labelling if the regulations are implemented in a reasonable manner, as has already been done in Canada.

"The most significant outcome of the U.S. Farm Bill will be the setback it will impose upon international efforts to reduce agricultural subsidies, including the massive European export subsidies that distort world commodity markets." said Mr. Fage

Together with Dr. Enrique Salinas Aguilera, the head of the Mexican delegation, Mr. Fage will be making representations for the United States to recommit to a positive role in world agricultural reforms.

The 12th annual meeting of the Tri-National Agricultural Accord concludes today.