News Release

November 7, 2001                                                                                                            For Immediate Release 

U.S. Farm Subsidies A Barrier to Freer Trade

“Both countries must work together to reduce trade distorting subsidies”

OTTAWA – Today Garry Breitkreuz, MP for Yorkton-Melville, along with the Senior Canadian Alliance Critics of International Trade, Agriculture, and International Co-operation released a letter sent to United States Trade Representative Ambassador Robert B. Zoelick outlining concerns over the continuing trade and production distorting agriculture subsidies in the United States.

The letter to Ambassador Zoelick makes it clear that subsidies are harmful not only to countries outside of the subsidizing nations, but in the long run in the domestic market where they exist.  They also hinder innovation, technological advancement, and encourage production where it should not occur.  The letter urges the United States to reconsider the proposed U.S. farm bill that would increase the levels of farm subsidies instead of starting along a course to reduce them.

“Farm subsidies hurt not only the development of free trade and economic growth, but also Third World countries who are trying to develop new markets and boost their own economies,” said Breitkreuz.  “Both of our countries, Canada and the United States, have seen how beneficial free trade is to our people and the economic growth that comes with it, but these farm subsidies are killing our Canadian farmers,” explained Breitkreuz.

“The same is true for all countries.  Reducing subsidies in developed countries will do more to assist underdeveloped countries than any foreign aid payments.  It’s the old principle of “Teaching a man to fish is much better than giving him a fish.”  This summer I had the opportunity to discuss agricultural issues with many representatives from Third World countries.  They continually emphasized the fact that subsidies in wealthy nations prevent their agricultural sector from developing,’ said Breitkreuz.

The letter also included a proposal for a rapid action dispute resolution process to combat frequent and costly agriculture trade disputes between Canada and the United States.

“The Canadian Alliance is offering positive solutions that would deal with costly trade disruptions before they occur.  This is the opposite approach to the Liberal government that only deals with bilateral trade concerns after a crisis erupts.  We encourage the federal government to take a more proactive approach.  That will, in the end, protect Canadian jobs and promote increased trade,” said Breitkreuz.

“Our farmers are suffering  -- drought, low prices, soaring input costs – all of these combined with foreign subsidies have put the most productive and innovative farmers in the world at a huge disadvantage.  We must start to put pressure on the United States to live up to their free trade commitments and start on the path to reducing subsidies,” implored Breitkreuz.

“Preparing now for the WTO talks is important or they will go the same way as they did in Seattle.  Canada’s farmers have a lot at stake in these discussions.  Without a successful initiative on the part of our negotiating team the future of agriculture will not be very bright.  We need to partner with our American neighbours – without their support we’re just whistling in the wind,” concluded Breitkreuz.

For copies of the letter please call 1-800-667-6606 or click here.

 

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