Federal-Provincial-Territorial Conference of Ministers and Deputy Ministers of Agriculture

TROIS-RIVIERES, QUE., July 4, 1997 -- Canada's agriculture ministers are committed to building on the record $20 billion in export sales the country's agriculture and agri-food sector achieved last year -- a target that was reached four years ahead of schedule. This represents a 50-per-cent increase over the 1993 exports, the year in which the target was set by industry.

At their annual two-day meeting, federal, provincial and territorial agriculture ministers received specific action plans for eight priority export markets that could see Canadian agri-food trade increase significantly beyond the $20-billion target. Ministers are looking to industry to set specific new targets for the year 2000 and beyond.

The action plans, which were drawn up in consultation with the sector, target specific markets where tremendous opportunities for trade and market development exist. The markets targeted as priorities are: United States, Japan, EU, China, South Korea, Taiwan, Mexico and Brazil. Ministers recognized that emerging markets are also important to the agri-food sector. Officials were requested to prepare action plans for these emerging markets for review in 1998.

Ministers stressed the importance of effective international trade agreements and noted the growing importance of agricultural trade for Canada. They agreed that Canadian international negotiating positions and strategies will be developed in consultation and collaboration with the provinces and industry.

Ministers pointed to the successful NAFTA panel defence of the Canadian position on dairy and poultry tariffs as a close and effective collaborative effort among the federal and provincial governments and industry that will serve as the standard for future multilateral and bilateral negotiations.

Ministers stressed the importance of full and effective consultations with provinces and all agri-food sectors to identify Canadian interests relating to the next round of agricultural negotiations under the auspices of the World Trade Organization, expected in 1999.

There was recognition of the importance of attracting new investment to help develop the sector. Ministers agreed to pursue a federal-provincial strategy building on current provincial efforts for attracting and retaining investment in the agri-food industry in Canada. Ministers agree to explore a code of conduct on investment and support competition in agriculture and agri-food markets. Ministers will finalize the investment strategy in July 1998.

Grain transportation and handling was a serious topic of discussion which Ministers agreed requires immediate attention. A federal/provincial working group tabled its report on the issue which looked at ways to improve efficiency and reliability of the grain handling and transportation system. The report, which will soon be made public, is expected to generate discussion and input from industry.

Ministers agreed to have further discussions on western grain transportation. They also agreed to set up a federal-provincial working group to identify and suggest ways to reduce the regulatory burden and transportation costs of feed grain in eastern Canada.

Consultations with industry will take place on the principles to broaden the agreement on internal trade to reduce barriers to agri-food trade in the Canadian market.

Ministers reconfirmed the importance of the Canadian farm safety net program in reducing risk and endorsement was given on a work plan for the review of the program for completion of consultations and the final plan by July 1998.

On wildlife and waterfowl damage to crops, the ministers recognized this was a societal issue and there is a need to increase public awareness. It was agreed the Canadian Federation of Agriculture and Wildlife Habitat Canada will continue to consult organizations involved in habitat development with a view to presenting a final report by Jan. 31, 1998. This report will outline levels of compensation and measures of prevention and also the source and management of funds.

The Ministers were presented with a report that outlines the importance of working toward a more integrated food inspection system. The Ministers restated their commitment to work together and remain confident that concrete progress can be made by the end of the year on several initiatives.

Ministers received reports on a number of strategic areas identified at their meeting in 1995, including an update on a study into input prices which will be completed by Dec. 31, 1997.

Next year's meeting will be held in Niagara-on-the-Lake, Ontario.

- 30 -

Records of decision are available by calling:
Federal-Provincial Relations Office
(613) 759-7248

RECORD OF DECISION

PRIORITY MARKETS FOR
FEDERAL-PROVINCIAL AGRI-FOOD TRADE DEVELOPMENT

After a presentation on the action plans for the eight identified priority markets for trade development, Ministers:

   

   

• Accepted the action plans and instructed Deputy Ministers to work together to coordinate delivery of these action plans in as cohesive a fashion as possible.    

   

     

   

     
   
• Instructed Deputy Ministers to initiate work on similar action plans for emerging markets for review at their next annual meeting, in July, 1998.    

   

     

Date and Time: Friday, July 4, 1997, 2:00 p.m.

RECORD OF DECISION

PROCESS FOR POSITIONING THE AGRICULTURE AND AGRI-FOOD SECTOR
FOR THE NEXT ROUND OF WTO NEGOTIATIONS

Having discussed the report of provincial ministers on the need for an enhanced role for provinces in international trade negotiations and having discussed the process for positioning the agriculture and agri-food sector for the next round of WTO negotiations, Ministers:

   

   

1. noted the growing importance of agricultural trade for Canada and agreed that Canadian negotiating positions and strategies should be developed in full consultation and collaboration with the provinces;    

    

      
   
2. further agreed that the successful NAFTA panel defense of the Canadian position on dairy and poultry tariffs reflected close and effective collaboration between the federal and provincial governments and industry which should serve as the standard for establishing negotiating strategies and policy priorities for future multilateral and bilateral negotiations;    

    

      
   
3. emphasized the importance of consultations in all agri-food sectors and provinces regarding trade negotiating strategies and policy priorities;    

    

      
   
4. agreed to designate the Federal-Provincial Agricultural Trade Policy Committee (FPATPC) to be the delivery mechanism for effective and meaningful provincial involvement in international trade negotiations at the officials level.

Date and Time: Friday, July 4, 1997, 2:00 p.m.

RECORD OF DECISION

INVESTMENT

After a presentation on the importance of foreign and domestic investment and the federal and provincial activities underway, Ministers:

   

   

• agreed that investment was important to the long term growth and stability of the Canadian agri-food sector;    

   

     

   

     
   
• instructed Deputy Ministers to develop a federal-provincial investment strategy for agri-food which encourages the retention of existing and the promotion of new investment in Canada;    

   

     

   

     
   
• asked Deputy Ministers to take into account the need to respect provincial jurisdiction as well as existing strategies and activities;    

   

     

   

     
   
• instructed officials to explore a code of conduct on investment and support competition in agriculture and agri-food markets;    

   

     

   

     
   
• instructed Deputy Ministers to prepare the Federal/Provincial investment strategy in time for Ministers to review at their next annual meeting, in July, 1998.    

   

     

Date and Time: Friday, July 4, 1997, 2:00 p.m.

RECORD OF DECISION

REMOVING BARRIERS TO INTERNAL TRADE

In order to complete a revised agriculture and food chapter of the AIT, Ministers:

   

   

1. Agreed to notify the Committee of Ministers on Internal Trade that a consensus exists to delay the deadline of September 1, 1997 set out in Article 902.4 for the review of the agriculture and food chapter to a date to be agreed by Ministers following consultations with industry.    

    

      

    

      
   
2. Endorsed in principle the concept of revising the agri-food chapter of the AIT through the development of general principles that would apply to measures affecting internal trade.    

    

      

    

      
   
3. Instructed officials to consult stakeholders on the principles to be adopted and then report to Ministers by July, 1998 with a recommendation on an approach and timetable to negotiate a revised agri-food chapter incorporating the principles, taking account of the views expressed by stakeholders.    

    

      

    

      
   
4. Agreed in principle, subject to the conclusions of the report on consultations with stakeholders, to complete the revised agriculture and food chapter by December 1998.    

    

      

Date and Time: Friday, July 4, 1997, 2:00 p.m.

RECORD OF DECISION

SAFETY NET - POST 1999

In establishing the mandate for the preparation necessary for the summer meeting of 1998, Ministers agreed t

   

   

1. the development of a multi-year framework which promotes a stable and predictable policy environment for governments and the industry and which is governed by the objectives and principles as stated in the existing framework agreement ;    

    

      

    

      
   
2. a defined multi-year agreement and funding commitment based on a negotiated cost sharing and allocation formula; a review of the current cost sharing and funding arrangements to be carried out as part of the mandate;    

    

      
   
3. an examination of program options that include, but is not limited to, the following:    
          

          

   • maintaining the existing national framework with its three components, allowing for the extension of the whole farm components, allowing for modifications, as needed and funded, on any of the components, as long as these meet the MOU's between governments, and fulfill the trade and budget constraints, within which safety net programs and policies must operate and must address transparency concerns;        

      

            

      

            
          
   • shifting the policy framework to a true whole farm approach so that, by 1999, all commodities can effectively (not just nominally) participate in the framework, or even further, in developing one Canadian program;        

      

            

      

            
          
   • modifying the existing framework to allow for greater flexibility and adaptability by governments to meet local needs/constraints, including not pursuing a whole farm approach on a Canadian basis, but possibly on a provincial or regional one; and        

      

            

      

            
          
   • taking a more radical shift in policy making, and with the current analysis of equity among provinces for federal funding, consider proceeding to a "block" funding approach, which will leave decisions on safety net development at a provincial/regional level, limited only by the federal government's willingness to proceed on such programming, (transparency, budget and trade policy constraints will still exist and would need to be met).        

      

            
      
      
   
4. Federal and provincial governments' consultation processes to seek the views of stakeholders on future policy and program developments with a report back to Ministers in July 1998.
   
5. Assistant Deputy Ministers of Policy will direct a work plan and make progress reports to Ministers at future meetings.

Date and Time: Friday, July 4, 1997, 2:00 p.m.

RECORD OF DECISION

NISA DESIGN

On the basis of the analysis of the National Net Income Stabilization Advisory (NISA) Committee and following the advice of the National Safety Net Advisory Committee, Ministers agreed:

   

   

1. To provide for more timely support in times of income difficulties, allow producers access to the funds in their NISA account within the stabilization year to which a triggered payment is attributed. The early withdrawal will be based on a pre-determined and approved methodology providing for reconciliation with actual trigger entitlements, so that excess withdrawals and the possibility of adverse trade impacts be minimized. Signatories will be further consulted and approval of an early withdrawal mechanism will be sought in time for implementation no later than May or June, 1998.    

    

      

    

      
   
2. Review the impacts on the stabilization effectiveness of trading interest bonus for tax deductibility of producers' contributions. Discuss with respective Finance officials the cost implications of removing the interest bonus or trading this provision for a tax deduction, with a view to report back at the next meeting of Ministers.    

    

      

    

      
   
3. The Policy ADMs Committee, with input from the National NISA Committee, the National Safety Net Advisory Committee and appropriate provincial advisory bodies evaluate NISA in the context of the work plan on the Medium Term Safety Net Policy.    

    

      

Date and Time: Friday July 4, 1997, 2:00 p.m.

RECORD OF DECISION

CROP INSURANCE
WILDLIFE AND WATERFOWL
POLICY DIRECTION

Pursuant to the July 1996 Ministerial decisions and in accordance with the tabled reports on Crop Insurance, Waterfowl and Wildlife prevention and compensation, Ministers agreed:

   
• to take note of the reports of the Crop Insurance Review Steering Committee and of the Canadian Federation of Agriculture and Wildlife Habitat Canada and thank these groups for the work done to follow up from the July, 1996 decision by Ministers;    

   

     
   
• that CFA and WHC be asked to consult with organizations involved in waterfowl and wildlife habitat development regarding their role and responsibility for funding damage compensation programs;    

   

     

   

     
   
• that CFA and WHC should finalyze this report by January 31, 1998 taking into account:    

   

     
         

         

  1. specific input from Federal and Provincial Agriculture Ministers;        

      

            

      

            
         
  2. results of discussions with Federal and Provincial Ministers responsible for environment, wildlife and waterfowl;        

      

            

      

            
         
  3. linkages of compensation levels to prevention effort;        

      

            

      

            
         
  4. source and management of funds; and        

      

            

      

            
         
  5. roles and responsibility and accountability structure of a single Canadian agency or alternative delivery mechanisms.        

      

            
     
     

Date and Time: Friday, July 4, 1997, 2:00 p.m.