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TPD > FTAA > Canada Proposals 2000 > Positions
 
 


Canada's Proposals for the FTAA Agreement 
FTAA Negotiating Groups - Canadian Written Submissions 

 

June 2000

PROPOSED TEXT FOR THE FTAA AGRICULTURE CHAPTER

Article 1. - Definitions


1.1. Agricultural products means the products listed in Annex 1 of the WTO Agreement on Agriculture (to be annexed to this chapter for reference and any subsequent changes agreed in the WTO to be incorporated).

1.2. Export subsidies means subsidies contingent on export performance as defined in Article 1.(e) of the WTO Agreement on Agriculture, including but not limited to the specific export subsidies listed in Article 9.1 of the WTO Agreement on Agriculture and in Annex I of the WTO Agreement on Subsidies and Countervailing Measures (these texts to be annexed to this chapter for reference and any subsequent changes agreed in the WTO to be incorporated).

Article 2. - Export Subsidies

2.1. The Parties agree to work toward a multilateral agreement in the WTO negotiations on agriculture to:
  1. eliminate export subsidies for agricultural products as quickly as possible and to prevent their reintroduction in any form, 

  2. prevent any WTO Member from using export subsidies for exports of agricultural products to any FTAA Party from the date of implementation of this agreement until full implementation of the comprehensive multilateral elimination of export subsidies under Article 2.1.(1), 

  3. reach agreement on rules to ensure that government-funded export credit and export credit guarantee programs, export market promotion and development activities, certain types of food aid, or other forms of export assistance do not become a substitute for export subsidies, and 

  4. eliminate those elements of Article 13 of the WTO Agreement on Agriculture (the "peace clause") that restrict Members’ rights to pursue WTO dispute settlement in cases where export subsidies cause nullification or impairment of access or disrupt sales in third country or import markets.

2.2. The Parties agree to eliminate and prevent the reintroduction in any form of export subsidies for agricultural products exported to other Parties as of the date of implementation of this agreement, except as provided for in Article 2.3.

2.3. In the event that the agreement under Article 2.1.(2) has not yet been agreed as of the date of implementation of this agreement and if a non-Party is exporting an agricultural product to another Party with the benefit of export subsidies, the importing party shall, on request of an exporting Party, consult with the exporting Party with a view to agreeing on specific measures that the importing Party may adopt to counter the effect of the subsidized imports. If the importing Party does not implement such agreed measures, the exporting Party may utilize an export subsidy for its exports of the same agricultural product to the importing Party until such time as the non-Party ceases to export that agricultural product to the importing Party with the benefit of export subsidies.

2.4. If an exporting Party introduces an export subsidy in accordance with Article 2.3., the importing Party may increase the rate of duty on such imports from the exporting Party up to the lesser of the rates being applied to the imports from the non-party or the applied most-favoured-nation tariff in effect at that time.

2.5. From the date of implementation of this agreement until full implementation of the comprehensive multilateral elimination of export subsidies under Article 2.1.(1), if Parties utilize export subsidies for exports of agricultural products to non-Parties, Parties agree to take into account the interests of other Parties and endeavour to minimize any adverse effect on exports from other Parties. If a Party is suffering an adverse effect in a non-Party market because of an export subsidy by another Party, the Party using the export subsidy agrees to consult on request with the adversely affected Party with the objective of reaching agreement to alleviate the adverse effect. 

Article 3 - Domestic Support

3.1. The Parties agree to work toward an agreement in the WTO negotiations on agriculture to achieve:

  1. the maximum possible reduction or elimination of production and trade-distorting domestic support, including support under so-called "production limiting" or "blue box" programs,

  2. an overall limit on the amount of domestic support of all types (green, blue and amber), 

  3. a review of the criteria for the green category to ensure that green support does not distort production and trade, and permanent international recognition that such support should not be countervailable, and

  4. the elimination of those elements of Article 13 of the WTO Agreement on Agriculture (the "peace clause") that restrict Members’ rights to pursue WTO dispute settlement in cases where trade-distorting domestic support causes nullification or impairment of access or disrupt sales in third country or import markets.

Source: Canadian Department of Foreign Affairs and International Trade