Completing the Doha Round Who Needs to Do What to Ensure Success? NFTC Session WTO Public Symposium April 20, 2005 Prosperity Through Trade

Completing the Doha Round – Who Needs to Do What 1.A snapshot of Canada and Trade 2.About the Canadian Agri-Food Trade Alliance 3.What is Success? 4.Who Needs to Do What? Prosperity Through Trade

Completing the Doha Round – Who Needs to Do What Canada Is: Highly dependent on trade 40% of GDP from exports 1 in 3 jobs 90% of Canadas farmers depend on international markets 7% of Canadas GDP from agriculture A leader in world agriculture trade 3 rd largest exporter, 5 th largest importer largest exporter of canola, flax, canola oil, canary seed, oats, pulse crops

Completing the Doha Round – Who Needs to Do What CAFTA Is: A coalition of producers, processors, exporters and input suppliers 80% of Canadas agricultural exports over 60% of farm cash receipts Dedicated to international trade liberalization Prosperity Through Trade

Completing the Doha Round – Who Needs to Do What Prosperity Through Trade What Is Success? Punta del Este goal: further liberalization and expansion of world trade to the benefit of all countries Marrakesh Goal: the substantial reduction of tariffs and other barriers to trade and to the elimination of discriminatory treatment in international trade relations Doha Mandate: to maintain the process of reform and liberalization of trade policies ….. to reject the use of protectionism

Completing the Doha Round – Who Needs to Do What Prosperity Through Trade What Is Success? Average agriculture tariff - 60% Peaks as high as 800% Developed countries spend over $US 300 billion annually on subsidies 25 countries can spend up to $12 billion in export subsidies alone Trade distorting domestic subsidies cause $US 29 billion in distortion

Completing the Doha Round – Who Needs to Do What Prosperity Through Trade What Is Success? Elimination of all forms of export subsidies No more than 5 years Substantial reductions in trade distorting support Product specific basis Criteria to prevent box shifting Substantial and real increases in market access Cuts into applied tariffs, reduces tariff peaks, expands TRQs, eliminates escalation

Completing the Doha Round – Who Needs to Do What Prosperity Through Trade Who Needs to Do What? All Must honour commitment made in Doha EU Must: Agree to early elimination of export subsidies Support domestic support box criteria Commit to real market access expansion Be realistic on G.I. demands

Completing the Doha Round – Who Needs to Do What Prosperity Through Trade Who Needs to Do What? All Must honour commitment made in Doha U.S. Must: Accept substantial disciplines on food aid and export credit Support domestic support box criteria

Completing the Doha Round – Who Needs to Do What Prosperity Through Trade Who Needs to Do What? All Must honour commitment made in Doha G20 Must: Maintain aggressive position on subsidies Accept some disciplines on leading developing countries (eg. Brazil in agriculture)

Completing the Doha Round – Who Needs to Do What Prosperity Through Trade Who Needs to Do What? All Must honour commitment made in Doha Cairns Group Must: Re-Assert itself as a leader for substantial reform Work closely with the G20

Completing the Doha Round – Who Needs to Do What Prosperity Through Trade Who Needs to Do What? All Must honour commitment made in Doha Canada Must: Re-Assert itself as a leader for substantial reform Negotiate aggressively in all areas of the negotiations

Completing the Doha Round – Who Needs to Do What Prosperity Through Trade If Countries Honour the Doha Mandate and Remain True to the 2004 Framework: No Deal is a Bad Deal

Completing the Doha Round – Who Needs to Do What CANADIAN AGRI-FOOD TRADE ALLIANCE Suite Slater Street Ottawa, Ontario K1P 5H3 Tel: (613) Fax: (613) Prosperity Through Trade