Press Room

Notes for an address by Serge Lefebvre, Chairman of the Fédération des producteurs des producteurs d'œufs de consommation, delivered on June 28 in Geneva.

Ladies and Gentlemen of the press,
Fellow farmers,

A failure of the current negotiations would be better than an agreement on the proposed bases.

The consequences of the proposals of the G-20 countries and the exporting countries in general would be catastrophic, both for producers under supply management in Canada and for farmers all over the world, particularly in developing countries.

At the beginning of June, WTO Director-General Pascal Lamy said in Montreal that Canada should accept concessions on market access for its commodities under supply management, in exchange for a reduction of other countries' subsidies and market protection measures.

Exporters' concerns predominate at the WTO, even though the principal market of the world's farmers is their domestic market. How can it be believed that liberalization of agricultural markets is the key that will open the door to development?

• Less than 10% of agricultural production is really covered by trade agreements on the world market, and any expansion of this trade will only benefit a small number of countries.
• In Canada, the 4th biggest world exporter of agricultural commodities, the domestic market accounts for 70% of agricultural production and agri-food industry revenues.
• The world prices are not remunerative. All we have to do is look at the unprecedented crisis prevailing in the grain, oilseed and red meat sectors in Canada.
• We believe that what the WTO proposes will not correct this situation.
• Indeed, Canada has calculated, on behalf of the WTO, that reductions in trade-distorting support proposed by the biggest world users of subsidies absolutely will not reduce the financial assistance paid to their farmers.

In saying this, I am not seeking to blame farmers in these countries. We know they would all prefer to draw their earnings from remunerative market prices without the help of subsidies of any kind.

But their governments have other ambitions - to maintain their exporters' competitiveness and preserve their market by supporting their agriculture.

Canadian producers under supply management do not receive any subsidies from their government. We cannot withstand competition from foreign treasuries.

The 2004 Framework Agreement for agriculture provided that countries could protect a certain number of sensitive products. Since that time, the exporting countries have relentlessly stripped these provisions of their meaning in their proposals on modalities. The proposals tabled by the governments of the G-20 countries would completely open up the Canadian market for commodities under supply management. This would be disastrous for us.

We would be totally exposed to competition from countries that either subsidize their agriculture or produce under climate conditions that we cannot import.

The world's farmers have a vision of agricultural trade that often is not the one defended by their respective countries.

Most farmers have concerns that rank higher than access to other countries' markets:

• obtain a fair income from the market without depending on subsidies;
• be able to feed their own population, in their own domestic market;
• for most farmers in developing countries, their primary concern is to feed their family (80% of the world's people who don't have enough to eat are small farmers) and have access to land, seeds, water, credit and technology.

If the WTO negotiations falter, the governments should take advantage of the break and really listen to their farmers instead of the multinationals and exporters. For the farmers I represent, our representatives at the WTO should favour the path of the Hong Kong Joint Declaration, calling for an agricultural agreement that recognizes the right of countries to adopt policies aimed at food sovereignty.

Thank you for your attention.

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