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Agricultural agreement at the WTO
SUPPLY MANAGEMENT PRESERVED!

Hong Kong, December 18, 2005 - Quebec farmers’ representatives at the WTO Ministerial Conference in Hong Kong reacted with satisfaction to the announcement of the agreement reached today on agriculture. In fact, the text provides for no new market access concessions or tariff reductions for Canadian dairy, poultry and egg products.

“This agreement, as written, does not represent a threat to the supply management systems for the time being. By accepting this text, the Canadian Ministers, to our great satisfaction, honoured the commitment unanimously voted in the House of Commons this past November 22, and in several provincial legislatures,” said Laurent Pellerin, President of the Union des producteurs agricoles and spokesman of GO5, Coalition for a Fair Farming Model, Supply Management.

The Canadian negotiators had to reject any agreement that would have sacrificed supply management. The motion adopted unanimously by the Quebec National Assembly on November 16, followed by four other provincial Legislative Assemblies (Prince Edward Island, New Brunswick, Ontario and Manitoba), and by the House of Commons on November 22, called on Canada to protect supply management. “With the motion adopted in the House of Commons, the mandate of the Canadian negotiators couldn’t be any clearer: that Canada do not accept any tariff reduction or additional access to the dairy, egg and poultry markets. The negotiators showed determination and respected the spirit of the motion without giving in to pressure,” observed the Chairman of the Fédération des producteurs de lait du Québec, Marcel Groleau.

Quebec farm leaders salute the work of the Quebec Ministers of Agriculture and Economic Development, Messrs. Laurent Lessard and Claude Béchard, and Bloc Québécois MP Pierre Paquette, who accompanied the Canadian delegation, headed by the Ministers of Agriculture and International Trade, Andy Mitchell and Jim Peterson. “Their participation certainly helped the Canadian government recognize that maintenance of supply management is a crucial issue for Quebec agriculture and that any concession on this issue could have affected the future of the dairy, chicken, turkey, table egg and hatching egg sectors,” said the Chairman of the Fédération des producteurs de volailles du Québec, Yves Baril.

The WTO member countries will have to continue the negotiations over the next few months to specify the modalities and the level of commitments they will actually adopt.“ Canada will have to remain vigilant and continue to push its balanced position to obtain a final agreement on the Doha Round that respects the bases of food sovereignty, on which supply management depends, while respecting world trade,” said Serge Lefebvre, Chairman of the Fédération des producteurs d’œufs de consommation.

“Commodities under supply management do not cause any distortions on the world market. They don’t glut world markets because they are adjusted to the domestic market’s needs. In addition, Canada already concedes more access to its dairy, poultry and egg markets than most of the major producing countries,” added Gyslain Loyer, President of the Syndicat des producteurs d’œufs d’incubation du Québec.

When they return home, the leaders will analyze the contents of this agreement in more detail with their decision-making bodies and will determine their action strategy for the months ahead. “It is clear that we will continue our actions to arrive at a final agreement that fully suits the sectors under supply management,” Mr. Pellerin concluded. Other questions are worth analyzing. This is the case for the impact of the domestic support provisions on administered prices and other commodities. The same principle applies to export competition and the eventual elimination of export subsidies.

In conclusion, it will be recalled that the commodities under supply management – milk, chickens, turkeys, hatching eggs and table eggs – account for nearly 40% of annual farm revenue in Quebec, or $2.3 billion. They generate over 60,000 direct and indirect jobs and make a major contribution to the regional economy.

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