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BLANSHARD
MUTUAL
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48 THE RURAL VOICE
NEWS
mission, was more forceful. He stressed
that there is a difference between food
security and food self-sufficiency. The
first doesn't necessarily entail the sec-
ond.
Deady said he believes it is very
important that governments dismantle
food self-sufficiency systems. Such
systems are no longer justified because
of the world's integrated trade structure,
he said, adding that there is too much
dependency on subsidies and the dis-
mantling process is much too slow.
Production, he said, should be based on
comparative advantage.
Extensive Australian studies have
shown that in all countries agricultural
subsidy policies, instead of creating
jobs, produce the opposite. Trade liber-
alization, Deady said, is crucial to world
food security.
National subsidy policies invariably
cause trade distortions and do more
harm than good, he added.
Deady said the current GATT talks
may change the thinking of previous
decades. All member countries are now
committed to more agricultural trade
liberalization as beneficial to all nations.
The distortion caused by subsidies is
best seen in the European Community's
(EC) Common Agricultural Policy
(CAP), which is costly and disrupts
world trade, he said. In the EC, he said,
unemployment is increasing and despite
an EC study that shows the bad effects of
CAP change is strongly resisted.
The dropping of subsidies leads to
higher prices, which benefits poor coun-
tries because they are significant agri-
cultural producers, Deady said. Their
income would be higher and this in turn
would benefit industrial countries. Free
trade opens up the possibility for more
Third World countries to become ex-
porters, he added.
Deady concluded that agricultural
liberalization in Canada cannot be car-
ried out by Canada alone but must be
done in concert with the U.S. and the
EC.
In a subsequent discussion between
the two lecturers, Lavoie said that he
doesn't believe that liberalization
would be beneficial in the long run. The
price paid would be too high, he said,
and there must be a minimum national
economic allotment so a country's so-
cial fabric can be protected.0