CWB Under Threat at WTO Talks

WINNIPEG - Nov 1/05 - SNS -- The Canadian Wheat Board (CWB) feels that it is under its greatest threat at the current round of agricultural trade talks, with both the European Union and United States using it as a pawn in efforts to move negotiations forward.

The CWB says the latest offer from the European Union (EU) insists on elimination of the CWB's single-desk marketing system. In its proposal the European Union said, "Australia, Canada and New Zealand need to provide further commitment on the reform of their State Trading enterprises."

CWB trade committee chair Larry Hill retorts, "Our single-desk system is not trade distorting, so it has no place on the table at the WTO. The Europeans have absolutely no grounds for demanding its elimination. This is clearly an attempt to pacify the U.S. without giving up much in terms of Europe's own hugely-distorting farm subsidies. Prairie farmers are caught in the crossfire."

The CWB believes pressure on the single-desk marketing system at the WTO originates with the U.S., where political pressure from special interest groups -- particularly North Dakota -- has led the American government to launch a multi-pronged attack on the CWB.

Hill said it was crucial that WTO members understand Canada has already made significant concessions in the talks that will affect the CWB - including the elimination of its financial guarantees if a WTO agreement is ultimately reached. He said the worst offenders (overwhelmingly the EU and U.S.) should make the biggest concessions.

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