WASHINGTON--Canadian Agriculture Minister Lyle Vanclief complained July 13 that the United States is increasing domestic support for agricultural commodities, while at the same time calling for governments to reduce domestic subsidies in World Trade Organization talks.
Vanclief, who spoke at a briefing for reporters at the Canadian Embassy, said there was a disconnect between U.S. actions and U.S. rhetoric.
Vanclief met with U.S. Agriculture Secretary Dan Glickman and U.S. Trade Representative Charlene Barshefsky during his Washington, D.C. visit.
"One of the points I've made very clearly ... [is] the difference between the rhetoric of what the United States is saying and the action of what the United States is doing," Vanclief said.
"The talk is they want to reduce export subsidies, they want to reduce domestic subsidies around the world ... but at the same time they are continually increasing support," he commented. The credibility of the United States is damaged when "they aren't walking their own talk," he said.
Vanclief also defended that Canadian Wheat Board from U.S. charges that its operations are not transparent. "I can assure you that the Wheat Board is far more transparent than the major grain trading companies in the world."
The United States has called for reform of state trading enterprises (STEs), such as the CWB, in WTO talks. U.S. officials have charged that STEs reduce market transparency and competition.
There is "no question" that WTO rules regard STEs as "legitimate institutions," Vanclief commented. He added that a number of U.S. audits over the years have confirmed that the CWB is in compliance with international trading rules.
Canada will look at complaints involving the CWB but only if they are based on "facts and not myths," he stated. If someone has facts to put on the table about the CWB's operations, Canada will examine them, he said. "If as a result of that [review] there are changes in how state trading enterprises are treated by the WTO then those changes must also apply to every other private or institutional organizations that trades in the commercial market as does the Canadian Wheat Board," Vanclief said.
The CWB markets Canadian wheat and barley in the Canadian market and abroad with the goal of obtaining the best possible price. Proceeds from the sales are passed back to the farmers after the CWB's marketing costs are deducted.
Canada is reminding the United States that better rules are needed on export credit, credit guarantees, and food aid to ensure that use of these tools does not distort commercial markets. "We certainly have been stressing that we want to get the WTO talks back on schedule," Vanclief said. Canada is encouraging both the United States and the European Union to get the WTO process launched, he added.
Vanclief also said that he would meet with Health and Human Services Secretary Donna Shalala to discuss food safety issues. The aim is to ensure that U.S. and Canadian food inspection systems are "as similar as they possibly can be." This would give comfort to consumers on both sides of the border, he added.
By Rossella Brevetti
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