Prosperity Through Trade


NEWS RELEASE
EU Export Subsidies Decision Underscore Urgency of Doha Agreement
 
Ottawa February 2, 2005 - “It is well within its international trade commitments, but the EU’s decision to reinstate export subsidies on wheat clearly violates the spirit of WTO negotiations, and makes agreement on new rules even more urgent.”   Those comments came from Liam McCreery, President of the Canadian Agri-Food Trade Alliance, after learning that for the first time in nearly 2 years, the EU plans to provide refunds on the export of 2 million tonnes of wheat.

“Canadian exporters are shocked and dismayed that the EU would reinstate export subsidies after agreeing to eliminate them in this round of negotiations,” said Mr. McCreery.  “The fact that it is perfectly legal under current trade rules makes it even more important that we fix the rules.”
CAFTA is urging Canadian Ministers and negotiators to step up the work to reach an agreement in the current negotiations that will end all export subsidies, as well as make substantial reductions in trade distorting domestic support and meaningful increases in market access.

“As long as the rules permit, countries will continue to distort trade with subsidies and barriers to access, and Canadian farmers will continue to suffer the effects,” said Mr. McCreery.   “We need all WTO member countries to seriously commit to reaching an ambitious agreement on agriculture by the end of this year.  Canada is an important participant in the international market place, and needs to play a strong leadership role to reach an agreement.”
 
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For Information:            Liam McCreery, President   Cell  (519) 532-0202
                                     Patty Townsend, Executive Director   Tel: (613) 560-0500


The Canadian Agri-Food Trade represents producers, processors and exporters of agriculture and agri-food products, as well as suppliers of agricultural inputs.  Accounting for over 80% of Canada’s agriculture and food exports, and more than 60% of farm cash receipts, CAFTA’s members are united in their dependence on trade, and in their need for a liberalized international trading environment.