The Goderich Signal-Star, 1987-09-09, Page 8PAGE 8—GODERICH SIGNAL -STAR, WEDNESDAY, SEPTEMBER 9, 198,7
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Free trade slammed
from page 1
the Canadian system of mark* boards
and supply management.
"I've heard American farmers say 'you
have a good system here, but they Would
never allow us to have it in the States,'
because the USDA ( United States Depart -
anent of Agriculture) would never give up
it's power," to the boards, he said.
Whalen concluded with a warning to
farmers - not to trust the American and
Canadian free trade negotiators to keep
their best interests at heart when making a
deal.
"Don't believe anyone, when they say
they're not discussing destroying your
system," he said.
ALL ON THE TABLE.
Huron MP and provincial agriculture
minister Jack Riddell also said it would be
"naive," of farmers to assume their
marketing system was not being discussed
by the negotiators.
"When the free trade talks began,
everything - and I stress the word
'everything' - was on the table," Riddell
stated.
Riddell said the uncertainty about free
trade has farmers in a quandry over
business decisions.
"Some can't decide whether to buy more
quota. Some wonder whether to sell out
now, while. the going is still relatively
good."
Supply management is vital to the pro-
sperity of some sectors of the Canadian
agriculture industry.
"For dairy, turkey, egg and broiler pro-
ducers, supply management has made all
the difference," allowing them to
"weather tough times better than most
other groups," Riddell said, and voiced his
opposition to any tampering with the
systems.
"I'm not prepared to see these suc-
cessful marketing systems bargained
away in a free trade deal and the govern-
ment I represent is not prepared to see
them bargained away."
He said he would not want to see Ontario
farmers go from "a system of orderly
marketing to a chaotic system of ups and
downs".
Riddell said not only must marketing
boards be retained, but some form of
border controls such as tariffs and health
standards, must remain in effect as
"underpinnings," to the system:
"If our system remained in place
without border controls," he stated, the
United States producers could flood the
Canadian market with their surplus com-
modities. "The cost of removing the
surplus from the market, place (through
purchase by marketing boards) would be
staggering," he said, adding that itwould
be the Canadian producers who .. would
ultimately bear the cost of surplus
removal.
Meanwhile, Riddell pointed out that the
Americans have a' "very effective border
control system," and would be unlikely to
reciprocate a Canadian open border
policy.
He warned that removal of tariffs which
keep large American producers out of the.
Canadian market could spell the end of the
FEATURE
REPORT
family farm system here. Any one of the
large American chicken producers, Rid-
dell said, "could supply all of Ontario with
chicken".
Riddell said his government has made
their postion on the issue clear to the
negotiators and the onus is now on
farmers, individuals and collectively, to
make their positions known.
"It is clearly not enough to just sit back
and hope somebody else is protecting the
interests of Ontario farmers.
The negotiations are now at the critical
final stage - it's really now, or never as far
as getting your concerns across to the
federal negotiators."
PERTINANT PRINCIPLES
Nelson Coyle, information officer for the
Canadian Chicken Marketing agency tried
to shed some light on the definition of free
trade and what it would mean to Ontario
Producers.
He said there are five basic principles
Which would pertain to all commodities in
a free trade agreement:
- All tariffs, without exception, would be
phased out, he said.
- All existing marketing agencies would
be "grandfathered, " which means no new
agencies would be allowed to be set up.
-- Supplemental imports, above and
beyond existing quotas, would be allowed.
- Health standards, packaging and labell-
ing between the two countries would
become "harmonized":
- The basic powers of supply manage-
ment, including quotas, would be retained.
These principles could lead to an erosion
of Canadian agriculuture for a number of
reasons, according to Coyle, who said that
preservation of supply management would
mean little unless "the market is preserv-
ed," through border controls.
Phasing out of tariffs, rather than im-
mediate removal would delay the effect,
however, he said, it would also discourage
future investment in Canadian Agriculture
by Canadians.
One of the measures being considered by
negotiators is opening of borders to pre-
packaged foods. Suoh pr oduc-ts, shipped in-
to Canada in large quanities, could cheap-
ly supply restaurants here, possible
limiting the amount of home-grown pro-
duce they would consume.
This, said Coyle, would prevent much of
"the new 'investment which the (Canadian
agriculture) industry is currently
generating".
Coyle maintained some optimism that
pressure from organized agriculturalists
could force negotiators to avoid making a
deal that could be damaging.
"If anybody can force a deal from the
negotiators for exceptions, it's the dairy
industry," Coyle said. .
' In addition to free trade with the USA,
Coyle also believes farmers must be con-
cerned about the General Agreement on
Trade ,and Tariffs (GATT) talks, which
also involve •Eurpopean countries. At
GATT, the United States is proposing a
complete global removal of financial sup-
port for agriculture. A complete free
enterprise system would leave only the
largest producers able to compete, he
noted.
-It's going to keep farmer organizations
hopping for a while, following GATT," he
said.
CLOSE SUBSIDIARIES
"The NDP beleives trade should
strengthen the Canadian economy," said
Huron NDP candidate Paul Klopp, adding
that "Free trade will not solve," all the
problems in Canadian Agriculture.
In fact, he claims, it could have the
reverse effect.
"A comprehensive arrangement will
allow multinationals ( corporations) to
close down their subsidiaries here," and
supply the Canadian market from produc-
tion facilities located in the United States.
"The bottom line is, while it might be a
great deal for big business, it will be a -bad
deal for the ordinary working people,"
said Klopp.
FAVORS DEAL
Huron Progressive Conservative Can-
didate Nico Peters was the only speaker on
hand to vnirP an opinion in favor of the free
trade talks initiated by the federal
conservatives.
"My party, and I, myself, support the
trade negotiations that are now going on,"
he said.
"We can't afford to lose markets we
have worked so hard to build up," he said.
Peters claims "a full two-thirds," of the
food produced in Canada was exported in
1985.
"And now you tell me that we have to
live in a Canadian -only market," he
asked?
While he said provisions for "orderly
marketing," should be included, "I will
support a fair deal that is equitable for
both sides".
TIME FOR INPUT
While free trade negotiations are under
the jurisdiction of the federal government,
the provinces' input will have an effect on
the deal, said Riddell in response to a ques-
tion from the audience on the amount of
power Ontario will have to block a deal.
"I'd be less than honest if I didn't tell you
that no province has a veto," said Riddell.
_-'.However, there area number of things_
the provinces have jurisdiction over, and
the 'feds' do not."
Riddell said an individual province could
change their labelling regulations, in-
crease health standards and increase sub-
sidies, to combat the effect of lost ,border
controls.
"I can't see the prime minister signing a
deal when he knows Ontario won't accept
it, when he knows Quebec won't accept it."
Whalen responded that the farmers
themselves can make a differences
"If every farmer here wrote. aletter to.. 1
( Canadian negotiator) Simon Reisman
and told him what impact free trade would
have on his industry, he can't ignore it."
Telegrams, and phone calls, added
Coyle, can be even more effective than
letters.
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