In a
recent press release sent
to 56 newspapers and reprinted
by two small-town weeklies,
my good friend Roméo
called me a hypocrite and
a weasel. He was expressing
his disagreement with an
opinion I stated about the
pig issue. Do you honestly
think I lost any sleep over
this? Not in the least.
I, too, dream of a secluded
retirement, where, with
slippered feet and fly swatter
in hand, I could reinvent
the world. So, my friend,
let bygones be bygones…
This said, I have a keen
desire to talk about the
WTO. As you probably know,
things aren’t moving
real quick in Geneva –
negotiations are presently
at a standstill –
the notion of impending
failure this fall will force
the players back to the
bargaining table. And, once
again, agriculture (and
supply management) will
be central to all the turmoil.
Let’s use milk as
an example to illustrate
my point of view, although
the same reasoning could
be applied to poultry or
to eggs. It’s like
this. Next December, once
the current round of negotiations
are over, three scenarios
will be possible. The first
and best is that tariffs
would be increased. Why
is this one the best? Because
increased protection would
also allow for an increase
in milk prices following
the flow of production costs.
However, no one really believes
in this option. It isn’t
part of negotiator’s
agenda. Don’t forget:
The WTO never turns back.
It moves forward and onward,
step by step, no matter
how small each step may
be, it advances towards
greater trade liberalization.
The second scenario, more
plausible, ends with the
inability to conclude an
agreement in Hong Kong.
Total failure. Good news?
Of course, because tariffs
wouldn’t be lowered.
There might still be a little
problem. Even with stable
tariffs, foreign products
could end up crossing the
borders if one of the three
following conditions were
to occur: If the Canadian
dollar continued to appreciate
(foreign goods would become
less expensive), if the
international price of dairy
products would suddenly
fall (it is currently at
$40/hl due to a drought
in New Zealand, but, as
we all know, this is temporary)
and finally, if the price
of our own products continued
to rise (rendering us less
competitive to foreign products).
In this scenario, if we
want to avoid being overrun,
we essentially need to temper
our ambitions regarding
price increases. It’s
not that bad in the short
term – there is still
some room to manoeuvre –
but in the long term, it
will just get worse. And
that’s too bad.
The third scenario is harsher.
As I write this article,
there’s no way to
know if an agreement will
be concluded in December.
But what we do know is that
a “last minute”
compromise won’t protect
us from lower tariffs or
milk quota cutbacks giving
the advantage to foreign
imports. Although it wouldn’t
be dramatic – nothing
is ever decisive with the
WTO – a cutback in
quotas combined with lower
tariffs would make our system
much less generous. Consider
the trend over the next
5 to 10 years.
This is where Canada must
negotiate powerfully and
fight boldly. Because the
goal is not so much to “save”
supply management –
which I’m sure we
can do – but to avoid
the slow erosion of its
ability to compensate farmers.
Canada can do this. And
it has done so brilliantly
for cultural products when
it negotiated the exception
clause with the WTO. The
only things setting apart
culture and agriculture
are four little letters.
Thus the importance of supporting
the GO5 group’s efforts
to pressure our politicians
and negotiators, and who,
next fall, will work to
raise the population’s
awareness of supply management.
This is in fact a great
endeavour. A huge meeting
is planned for Montreal
at the end of October with
the support of hundreds
of interveners. And I will
be one of them. I’ll
be looking forward to seeing
you there.