GLOBALIZATION
For the last twenty years or so, the trade negotiations taking place at the global level resulted in market openness, decrease in government support, and reduction of export subsidies from countries to the agricultural sector.
ESTIMATE OF TOTAL GOVERNMENT SUPPORT PER CAPITA, IN US$ (Excluding market price support)
Country/Region |
1986-1988 |
2002e |
Variation |
| Canada |
166 |
124 |
- 25 % |
European
Union |
85 |
149 |
+ 75 % |
| U.S.A. |
201 |
263 |
+ 31 % |
| Japan |
111 |
127 |
+ 14 % |
| OECD |
115 |
151 |
+ 31 % |
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However, until now, several countries found a way to sidestep these new trade rules resulting from the GATT and WTO negotiations. As can be seen on the table hereof, the assistance for Canadian agriculture is not competitive. |
e: estimates
Source: Research and Agricultural Policies Department’s compilation from a document entitled: Agricultural Policies in OECD Countries: Monitoring and Evaluation 2003.
When analysing the table above, the following can be noted:
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Canada provided a support of 124 US$ per capita in 2002, which is slightly less than half of the total support provided by the U.S.A. (263 US$); |
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during more than fifteen years, the per capita support for agriculture dropped by 25% in Canada, while increasing by 75% in the European Union countries, by 31% in the U.S.A., and by 14% in Japan. |
Moreover, Canada is behind other countries concerning green support programs (research, environment, consultant services), which are free from any reduction in the multilateral negotiations on agriculture.
Therefore, application of the new international trade rules for agricultural products resulted in significant changes in the agricultural policies of some countries. Canada is not an exception to the rule and had:
In spite of all this, and thanks to the collective marketing tools developed by Canadian producers, the Canada and Quebec consumers still have access to one of the cheapest food basket (and of excellent quality) around the world.
COMPARATIVE
DATA ON THE COST OF A GROCERY BASKET IN VARIOUS COUNTRIES
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Check-out prices for a standard food basket containing 12 products: milk, butter, Cheddar cheese, yoghurt, ice cream, eggs, apples, potatoes, carrots, pork tenderloins, broiler chicken, and lean ground beef.
Source: Edelman Survey, World Public Relations, February 2000 |
Although favourable to some degree of market openness, the UPA is reluctant regarding free trade. The UPA opinion is that world trade discipline must be reinforced. On this issue, the objectives the UPA supports are:
In the context of international negotiations, and in order to maintain the tools implemented in Quebec and Canada to meet agricultural producers requirements, the UPA requires from governments:
It is in this context that the UPA set up in 1993 the UPA Développement international. corporation, whose expertise is increasingly recognized around the world. The six intervention orientations of UPA Développement international are:
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using the family farm as a model for sustainable agriculture; |
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supporting the democratic organizations; |
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developing collective marketing systems to democratize market economy; |
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promoting continuing education as an essential support to action and development; |
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asserting the place and role of women in agriculture; |
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fostering participation of Quebec producers in development |
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Regarding market globalization and international trade, the UPA remains on its guard. For the past few years, through various meetings with government representatives, UPA authorities, working groups and partners have:
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followed day-to-day and main events concerning international trade, i.e.:
- negotiations (WTO, FTAA, bilateral agreements, etc.);
- commercial disputes (sugar, cotton, timber, alive swine, etc.);
- regulations application concerning commercial treaties (bioterrorism, ministerial exemptions, ITA, WTO, etc.); |
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used all the forums available to them to promote producers’ point of view; |
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developed new alliances with new groups of producers through various representations. |
Moreover, since 2003, the UPA joined the four groups representing producers under supply management systems to form the coalition GO5 for a fair farming model. This coalition supports the governments in their efforts to protect supply management systems. To date, it received about 20,000 endorsements and is made up of agri-food partners (upstream and downstream), companies, financial institutions, consumers groups, trade unions, municipal, provincial and federal elected representatives as well as individuals.
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