The Ministerial declaration from World Trade Organization (WTO) meetings in Hong Kong means that western Canadian farmers retain the right to determine the future of their marketing system, the Canadian Wheat Board (CWB) board chair said today.

“The wording in this new text means that the CWB’s existence will not be on the table at the WTO,” said Ken Ritter, an elected farmer-director from Kindersley, Saskatchewan. “This will make it more difficult for the United States to achieve its objective of eliminating our marketing system.”

However, western Canadian farmers will lose their government guarantees of initial payments and CWB borrowings under a new deal, with still no signs of meaningful reductions in U.S. and EU domestic farm subsidies.

“There is a lot of work ahead to reach a draft agreement that provides any benefits for Canadian farmers before the new April 2006 deadline,” Ritter said.

Ritter and fellow farmer-director Larry Hill, who return today from Hong Kong, recognized the work of Canadian ministers and negotiators towards a declaration which seems to acknowledge that the CWB’s future is for Prairie farmers alone to decide.

“We appreciate that Ministers Peterson and Mitchell, Parliamentary Secretary Easter and their teams have worked hard to improve understanding of our issue: that the CWB’s single desk does not distort trade and will therefore not be a matter for these negotiations,” Ritter said. “Several countries, including Australia and New Zealand, joined Canada in resisting U.S. and EU pressure on this issue.”

The declaration includes a commitment to end export subsidies by 2013 and disciplines food-aid practices and export credit programs. However, there was little progress on the major issues of reducing bloated American and European domestic farm support and improving market access.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells to over 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.

BACKGROUNDER

December 18, 2006: After a five-day Ministerial meeting in Hong Kong, a declaration by global trade ministers is endorsed by the WTO General Council. It sets an end-date for negotiating a draft world trade deal (modalities) by April 2006.

It confirms a general framework for negotiating on the key issues of trade-distorting farm subsidies (domestic support) and market access, which have yet to be resolved. It also includes a commitment to end export subsidies by 2013 and to discipline food-aid practices and export credit. With regards to State Trading Enterprises (STEs), it reads:

"As a means of ensuring that trade-distorting practices of STEs are eliminated, disciplines relating to exporting STEs will extend to the future use of monopoly powers so that such powers cannot be exercised in any way that would circumvent the direct disciplines on STEs on export subsidies, government financing and the underwriting of losses."

For western Canadian farmers, this means an end to government guarantees of initial payments and CWB borrowings if a final deal is negotiated.

Aug. 1, 2004: A framework agreement for world trade is reached. Negotiations continue in an effort to reach agreement on draft modalities.

Sept. 10- 14, 2003: A Ministerial meeting is held in Cancun, Mexico. Negotiations have been contentious and members are deadlocked. A framework agreement was not reached. The main stumbling block at this meeting was not agriculture, although it remained controversial, but the so-called "Singapore issues" including trade facilitation, competition, investment, and transparency in government procurement.

Mar. 2003: An attempt at establishing modalities by the specified deadline is not successful. WTO members decided to take a step back and focus on coming up with a more general framework for the agriculture portion of the agreement, with full modalities to be finalized later.

Nov. 2001: The Fourth Ministerial Conference is held in Doha, Qatar. The Doha Development Round begins and an official declaration is passed. The agriculture negotiations become part of the single undertaking in which virtually all the linked negotiations are to be completed by January 1, 2005. A modalities agreement (the form of the commitments that countries will undertake) on agriculture is to be reached by March 31, 2003, with an agreement on countries’ comprehensive commitments by September 2003.

2000: Negotiations begin on a new world trade agreement for agriculture and services. WTO members are attempting to introduce or more closely define rules to further liberalize world trade, with a particular focus on a number of sectors, including agriculture. There is also a strong focus on trying to make the global trading system more accessible to, and beneficial for, developing countries.

1999: WTO members meet in Seattle in an effort to launch a new round of world trade negotiations. Efforts were unsuccessful and talks could not begin.