Commentary

Canada's Position on the Agricultural Subsidy Dispute

Canada is in a unique position in regard to the dispute between the U.S. and the EU on control of agricultural markets. On the one hand, Canadian farmers are being devastated by the subsidy regimes of both the U.S. and Europe. In addition, Canada is facing some unique challenges due to the fact that, despite the existence of NAFTA, the U.S. is erecting illegal trade barriers to many Canadian agricultural products, especially wheat and potatoes. However, Canada is second only to the United States as an exporter of genetically modified foods and the Canadian government is a major sponsor of Monsanto, the leading corporation in genetically modified organism (GMO) research.

As a result, the Canadian government has been supporting the demands of the developing countries for an end to the agricultural trade subsidies of the U.S. and EU. However, it has also taken a leading role in pushing for a WTO ruling against the EU for its barriers against the importation of GMOs. This is both because of its cozy relationship with Monsanto, as well as an attempt to placate the Americans and get them to back off on their harassment campaign against Canadian products.

The failure of the WTO conference in Cancun to sort out the contention between the U.S. and EU over which group of imperialists will control agriculture means that Canadian agriculture is in big trouble. Despite a policy of concessions on the part of the Canadian government there appears to be no end in sight to harassment of Canadian exports by the American government. Furthermore, by championing Monsanto and the U.S. position on GMOs, the Canadian government has further damaged relations with the EU and tarnished Canada's standing with the developing countries. In addition, the federal government has been strangely silent in recent months on the issue of the Canadian Wheat Board, in the face of increasing pressures from the U.S. and EU for the dismantling of that agency.

As a result of the abject failure of the agricultural policies of successive Canadian governments, Canadian agriculture now stands at a crossroads. The path forward is to join with the developing countries to break the monopoly of the big powers. However, there is every indication that the Liberal government will instead go for a policy of capitulation to the imperialists, which will spell disaster for Canadian farmers.