Mr. Speaker, I am pleased to take part in this debate. I would like to pursue the fourth paragraph of the NDP opposition day motion on free trade. I will read into the record the entire paragraph because the Parliamentary Secretary to the Minister of Agriculture and Agri-Food concerned himself with the first half of it. The entire paragraph states:
The government should take action to remedy its overzealous and irresponsible pursuit of greater trade liberalization, which has caused extreme hardship for Canadian farmers, whose domestic support payments have been slashed by 60%, three times what was actually required by Canada's international trading obligations.
I will take a moment to define what I think is intended in that paragraph and to go over what has transpired in the past six years.
In 1993 the General Agreement on Tariffs and Trade was signed by Canada and by a number of other countries. For the first time ever GATT dealt with agricultural issues. I was not there but I believe I can indicate what the agreement was. We do not have time to get into all the agricultural concerns right now, but let me say as a starting point that the signatories were to reduce by 20% domestic support subsidies over the next five years. That was the arrangement made and all the signatories to the GATT Uruguay round signed on to that agreement.
In 1993, also an important year, the government opposite came to power in October of that year. As I noted earlier today in questions and comments, the Reform Party became the only opposition in English Canada with official party status in the House. It had an entirely different agenda, which was to get rid of domestic support payments as fast as possible. This fit very neatly with the decision of the Minister of Finance and the Prime Minister to balance the books. It was a very happy marriage.
The long and short of it is that instead of Canada reducing its domestic subsidies by 20% on agriculture over the five year period it was reduced and slashed by some 60%. This has meant the elimination of the Crow benefit, the subsidy that predated Saskatchewan's entry into Confederation. It actually came into force and effect in 1897. With its elimination there was a loss each and every year on the prairies of some $600 million; $325 million in the province of Saskatchewan alone. Also freight rates for farmers shot up dramatically since the end of the Crow benefit.
The government had the option of eliminating or phasing out the Crow over a number of years, but because it had a different domestic agenda of balancing the books as quickly as possible, it did it all in one fell swoop with a very modest payment going back to farmers and producers.
It now means in my constituency of Palliser for a farmer in Rouleau or Wilcox with three hopper cars filled with grain that 33% of it goes to pay the freight alone. It is no wonder farmers are going broke so fast on the prairies.
Mike Gifford, an international trade negotiator for the Government of Canada, told the Standing Committee on Agriculture and Agri-Food that Canada could put $2 billion back into domestic support payments tomorrow without fear of raising any concerns among our trading competitors. That is how much we have reduced our domestic support payments in recent years.
What they got instead was a modest little announcement today of some welcome assistance for AIDA. The premiers of Manitoba and Saskatchewan were here a week ago today, along with the farm lobby, seeking $1.3 billion. The announcement today says there is a further $170 million available for the agriculture disaster assistance program, barely 10% of what farmers in the two prairie provinces feel they need for their provinces.
There is an interesting sentence in the minister's release wherein he says:
We presume the provinces will maintain the 60:40 cost sharing arrangement on total safety net expenditures.
That is a rather large presumption for the minister of agriculture to make, especially for the Manitoba and Saskatchewan provinces because I do not think they will decide to enter into this 40% arrangement. The AIDA program is so tainted in those two provinces that I think they will feel they can get a better return on their investment by doing something directly for their farmers themselves rather than entering into what they feel is a very flawed program.
Let me turn to our competitors, particularly those south of the border. We have some concerns. We are not only concerned about what has happened in the past, but now we need to be concerned about what will happen at the upcoming WTO in Seattle. I note what Charlene Barshefsky, the U.S. trade representative, has been saying within the last month. I will quote from a document where she said:
The goal of the Clinton administration is to eliminate all farm export subsidies, reducing sky high tariffs used by Canada and other countries to keep out U.S. imports and strengthen disciplines on state trading agencies such as the Canadian Wheat Board.
That is the goal of the United States. I think it will find support from some other countries as well. It does not like state trading agencies or enterprises and we do not agree. The Canadian government has been very dogmatic in its comments that it will defend to the fullest the Canadian Wheat Board and supply management. There is no question in my mind that the Americans have their guns trained on Canada, on the wheat board in particular, and on supply management.
My concern in this regard is that our government's response is very timid and very pale. It seems to be paralyzed with fear that anything we do in terms of trying to protect our primary producers, particularly in the prairies but elsewhere as well, will trigger retaliatory action by the Americans. They are concerned that everything is in the green box in terms of making it palatable.
For example, in 1995 Canada's total for amber support, the yellow light, was only 15% of WTO spending while in the United States it was almost 27%. In the European Union it was just in excess of 60%.
Canada must approach the next round of the WTO agricultural negotiations in a very cautious and thoughtful manner. That is what paragraph 4 is all about in the motion before us.
A new agreement which just continues the existing formula in reduction of protection and support without correcting the inequities in the current agreement will not necessarily be beneficial to Canadian farmers. In fact, such an agreement will just exacerbate current inequities.
I would make the observation that Canada is so intent on making sure that the very tiny domestic support we have is in the green box and that our farmers in western Canada are turning purple as a result of that.
I notice that you are giving me a signal, Mr. Speaker. I did not realize the time had flown by so fast. I do want to close my speech with a couple of predictions.
I have talked about the Canadian Wheat Board and I have talked about supply management. This is my prediction. The next round of the WTO which starts later this month in Seattle will see the demise of the Canadian Wheat Board. The Canadian government will fight it to the death, but at the end of the day the Americans will win and we will lose the Canadian Wheat Board. The next round of the WTO after this round will spell the demise of supply management. I hope I am wrong but I do not think I will be.
Currently there is a movie called
Eyes Wide Shut
. That is how Canada went into the last round of agricultural trade. I hope we go to Seattle with our eyes wide open.