Completing the Doha Round

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

• A snapshot of Canada and Trade
• About the Canadian Agri-Food Trade Alliance
• What is Success?
• Who Needs to Do What?

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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
• 3rd largest exporter, 5th largest importer
• largest exporter of canola, flax, canola oil,
  canary seed, oats, pulse crops

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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

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Completing the Doha Round Who Needs to Do What

• 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

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Completing the Doha Round Who Needs to Do What

• 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

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Completing the Doha Round Who Needs to Do What

• 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

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Completing the Doha Round Who Needs to Do What

• 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

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Completing the Doha Round Who Needs to Do What

• 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

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Completing the Doha Round Who Needs to Do What

• 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)

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Completing the Doha Round Who Needs to Do What

• 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

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Completing the Doha Round Who Needs to Do What

• 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

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Completing the Doha Round Who Needs to Do What
If Countries Honour the Doha Mandate and Remain
True to the 2004 Framework No Deal is a Bad Deal
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Completing the Doha Round Who Needs to Do What
CANADIAN AGRI-FOOD TRADE ALLIANCE Suite 308 151
Slater Street Ottawa, Ontario K1P 5H3 Tel
[phone] Fax [phone] www.cafta.org
Prosperity Through Trade