| Final Trip Report
Mission to London, England-Brussels, Belgium-Geneva, Switzerland
Dates: April 23 – 30, 2006
Purpose of travel:
- To attend and participate in World Trade Organization (WTO) ministerial meetings in Geneva.
- To meet delegations from other countries and advance Alberta’s agricultural trade interests.
- To develop strong bilateral relations with key government officials and businesses and pursue trade and investment opportunities.
Overview:
- The Honourable Doug Horner, Minister of AAFRD, lead a mission to London, Brussels and Geneva on
April 23 – 30, 2006.
- Minister Horner met with WTO negotiators and Ambassadors from Canada, the United States (US), European Union (EU), Japan, Mexico, China, India, New Zealand, Australia, and Malaysia to make Alberta’s position on the WTO negotiations clear and impress upon the negotiators the need for an aggressive pro-trade outcome.
- In addition to WTO discussions, Minister Horner met with numerous EU representatives in Brussels to discuss the EU approach to trade and food safety.
- Meetings in London explored opportunities for investment in areas such as beef processing and the biofuel industry.
- Meeting with Lord Bach, UK Parliamentary Under Secretary for Sustainable Farming and Food, in preparations for meetings in Brussels and Geneva.
Mission Objectives:
- Advocate Alberta’s agricultural trade interests and priorities at the WTO meetings.
- Develop strong linkages with key government and industry decision-makers in Europe to address trade policy, food safety and other market access issues.
- Provide trade and investment opportunities for Alberta agri-food products and industries
Results:
London, April 24 - 25, 2006
- Canadian High Commission officials provided an up-to-date briefing of the United Kingdom (UK) agricultural sector and the economic climate in the UK and the EU. The EU’s agricultural policies and the farm payment system were thoroughly explained, in preparation to meeting with EU parliamentary undersecretary for sustainable farming and food officials and the UK Minister of Agriculture.
- Alberta will provide information on prospects for non-hormone beef production and facilitate meetings between the Canadian Beef Export Federation and UK importers.
- High Commissioner Mel Cappe, spoke to the relatively free trading principles that govern the UK’s system and advised Alberta delegation on UK’s role within the EU in trying to reduce agricultural support and protection. Food safety, animal welfare and consumer perceptions of genetically modified products in the UK and Europe were discussed. The delegation benefited from the High Commissioner’s insights into EU policies related to the WTO.
- Minister Horner met with Lord Bach, UK Parliamentary Under Secretary for Sustainable Farming and Food. Discussion topics included WTO agricultural issues, the UK perspective on further reforms to the Common Agricultural Policy, the politics of food safety, potential threat of avian influenza, and UK initiatives related to rural development. Minister Horner emphasized Alberta’s position at the WTO and the need for a substantial outcome. Alberta has agreed to share information on Crop Insurance and the Canadian Agricultural Incomes Stabilization (CAIS) program.
- The Food Standards Agency in the UK provided Alberta delegates with an overview of the BSE crises in the UK, the policy responses and the recovery process. Minister Horner raised a number of questions on the Food Safety Agency’s relationship with the EU’s Food Safety Authority. The Food Standards Agency has recently signed a Memorandum of Understanding with the Canadian Food Inspection Agency (CFIA). Britain’s experiences with BSE will be helpful to Alberta and Canada as we strive to eradicate BSE in Canada.
- Minister Horner met with a number of UK industry and government groups, including the Home-Grown Cereals Authority, the International Grains Council, the Food and Drink Federation, National Farmers’ Union, and the International Meat Trade Federation. It was evident that UK agriculture and food industries are committed to a substantial agreement in the WTO and are urging the EU to take a leadership role to successfully conclude the negotiations. There is also extensive interest in the UK in organically produced food and hormone free beef and meat.
Brussels, April 25 - 26, 2006
- Minister Horner met with officials of the Canadian Mission to the EU who provided a thorough assessment of the political and economic climate in the EU and its relationship to the WTO process. The demand for hormone-free beef and organic produce is exploding and there may be opportunities for Alberta companies to take advantage of this market opportunity.
- Alberta agreed to provide information and prospects for a biofuels industry in the province as well as investment information for the production of hormone-free and organic beef.
- Canadian mission staff provided a thorough assessment of EU agricultural policies, prospects for further reform of the Common Agricultural Policy (CAP), EU’s negotiating approach to the WTO and the EU’s long-term plans for a sustainable agricultural sector.
- A meeting with the European association for bio-industry was very useful in gaining insight into EU processes for approval of GM crops and the need to keep the pressure on particular states for a favourable outcome on approval for Canadian bioengineered products.
- Minister Horner met with the Deputy Director General of Agriculture for the EU and engaged in a wide-ranging discussion on EU agricultural policies, prospects for the WTO negotiations and the EU’s polices and programs on rural development and risk management for farmers. Minister Horner took the opportunity to emphasize Alberta’s approach to trade negotiations, our dependence on exports to grow the industry and the move towards income stabilization and risk management programs. Alberta agreed to share information on business risk management programs and the Alberta Rural Development Strategy.
- Minister Horner met with the Deputy Director General for Health and Consumer Protection for the EU. There was considerable discussion on the EU’s efforts to legislate and implement traceability systems, an Avian Influenza Response plan, the EU system for considering and approving GM products, and other food safety standards. Minister Horner invited EU officials to Alberta to study Alberta’s efforts to initiate age verification and traceability systems. An EU official will travel to Alberta in August 2006, to study Alberta’s food safety systems and meet with industry organizations responsible for animal identification.
- Minister Horner met with a number of industry organizations to gather intelligence on their views and interests in the WTO. Organizations and individuals included the Vice President of Time Warner, the Managing Director of the European Services Forum, sitting members of the WTO Appellate Body, legal counsel for EU business interests and academics. It was clear that the EU has considerable interest in gaining a substantial outcome in the WTO service negotiations and in market access for industrial products.
- Minister met with the Belgium Food Safety Authority to discuss regulation and legislation on food safety.
Geneva, April 26 – 30, 2006
- The Canadian Ambassador to the WTO provided an update on the status of the negotiations in agriculture, services and non-agricultural market access. The mood in Geneva appeared somber and there was a realization that modalities in agriculture could not be agreed to by the end of April deadline. An intensive work program had been agreed upon to facilitate a Ministerial meeting at the end of June. Minister Horner strongly advocated the Alberta position for an aggressive outcome in all areas of the negotiations, with particular emphasis on market access.
- Canada’s Chief Negotiator for agriculture provided a thorough assessment of the state of the negotiations in agriculture and the approach that key countries were taking in both formal and informal settings. There was a sense that a deal could be done if there was the political will to make it happen. The level of ambition for a substantial outcome remained but the chief protagonists remained too far apart to complete detailed modalities by end of April. Minister Horner advised the Chief Negotiator on the Alberta government and industry’s interests in a substantial outcome. The presence of a strong contingent of Alberta industry in Geneva is testimony to the seriousness with which Alberta views these negotiations. He urged Canada to take a leadership role and not let its defensive interests override the need for a substantial agreement for export-oriented sectors. Alberta also continued to advocate an end to the Canadian Wheat Board (CWB) monopoly.
- Meetings with the Deputy Directory General of the WTO for agriculture and his colleagues provided an opportunity to assess the dynamics of the negotiations and the difficult issues which face Ministers. There was consensus that a successful outcome was still possible and that what was on the table should not be lost. The WTO Secretariat has laid out a plan for intensive negotiations on critical issues and has urged the EU and the US to make much needed decisions on Agriculture, while India and Brazil will have to close the gaps on industrial goods and services. Minister Horner again emphasized Alberta’s priorities for agriculture.
- Minister Horner also met with Alberta industry and Canadian industry, including representatives of farm organizations to share information and develop strategies for the various meetings with the Canadian delegation and other country delegations.
- The meeting with the Chairman of the Agricultural Negotiations Group resulted in a very productive conversation on the “sticking points” in the negotiations. It is the Chair’s view that all countries will have to show some movement to conclude a deal. There will be no free ride. The Chair emphasized that a perfect deal is not possible, but a substantive outcome is still possible. The Chair is optimistic that this Round can be successfully concluded.
- Minister Horner also met with Ambassadors and Chief Negotiators from the following countries: Korea, Canada, US, Australia, China, India, Mexico, Japan and Malaysia.
- Canada’s Chief Negotiator acknowledged and appreciated Minister Horner’s advocacy for the Alberta position and priorities and felt that it was useful for Alberta to carry that message to others in Geneva.
- The Australian Ambassador felt that the political energy necessary for a successful conclusion is still lacking. Ministerial meetings are important to signal all countries that politicians are taking this seriously and have ownership of process, decisions and accountability. Australia identified market access as the critical area lacking convergence. Retention of the monopoly for the Australian Wheat Board did not appear as a make or break issue for Australia.
- The Chinese government was of the view that China had paid considerably more than others when acceding to the WTO. China is very supportive of an early elimination of all export subsidies and is clearly interested in strengthening the multilateral, rules based framework for trade.
- India was pessimistic about the manner in which the stalemate and deadlocked positions of countries could be broken. India had supported the need for a Ministerial meeting at the end of April. The Round may have to be concluded with lower expectations and a modest outcome.
- The meeting with the Mexican Ambassador focused on the mutually beneficial relationship under North American Free Trade Agreement (NAFTA) and the growing bilateral agricultural trade between Canada and Mexico. Mexico supports an ambitious outcome to this Round because it fears that if there is a failure, protectionist forces around the world will scuttle any further attempts. Canada and Mexico can work together to persuade other trading partners to move from their entrenched positions.
- Japan was supportive of a Ministerial at the end of April and felt that the process was still on track. Minister Horner thanked Japan for re-establishing trade in beef and asked that Japan give consideration to expanding that trade beyond the current age limit.
- The Malaysian Ambassador provided a thorough assessment of the state of negotiations and the political dynamics required to conclude the deal. Minister Horner agreed to provide information on Alberta’s capacity to produce and provide “halal” beef to Malaysia. Investment potential in beef processing was also discussed.
- It is useful to note that all of the country delegations felt that Canada has some of the most knowledgeable and credible negotiators in agriculture and other areas of the negotiations. They had high praise for the technical expertise of Canada’s negotiators.
Delegation:
Minister Doug Horner, AAFRD
Jason Krips, Executive Assistant to Minister Horner, AAFRD
Colin Jeffares, Assistant Deputy Minister, Planning and Competitiveness, AAFRD
Nithi Govindasamy, Director, Policy Secretariat, AAFRD |
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