WTO Agrees to Eliminate Export Subsidies by 2013

The latest World Trade Organization (WTO) meetings in Hong Kong marked a significant step forward in the elimination of export subsidies in agriculture. Canadian officials welcomed the progress, citing the achievement of their objectives on the treatment of sensitive products and the Canadian Wheat Board (CWB). However, a delegation of Canadian producers, processors, and exporters expressed disappointment over the lack of progress on market access.

Key Takeaways:

• The WTO has agreed to eliminate export subsidies in agriculture by 2013, conditional on the closure of loopholes.
• Canada's objectives on the treatment of sensitive products and the CWB have been met.
• The Canadian Wheat Board has noted that the new text focuses on future uses and practices of monopoly powers.
• The Canadian Agri-Food Trade Alliance (CAFTA) expressed disappointment over the lack of progress on market access for sensitive products.
• The Canadian Canola Growers Association criticized the "lack of ambition" in Hong Kong, citing the potential annual return of C$485 million to canola producers and processors if tariffs were removed within 10 years.

Statistics:

• The WTO has agreed to eliminate export subsidies in agriculture by 2013.
• 149 WTO member countries participated in the Hong Kong talks.
• The ministers have given themselves a deadline of April 30, 2006, to complete the full modalities in agriculture.
• The removal of all tariffs on canola within 10 years would return over C$485 million annually to Canadian canola producers and processors.

Sources:

• "WTO Agrees to Eliminate Export Subsidies by 2013"
• "Canada's Objectives Met in WTO Declaration"
• "Canadian Agri-Food Trade Alliance (CAFTA) Press Release"
• "Canadian Canola Growers Association News Release"
• Resource News International (2005)