Canada will propose at the new round ofinternational trade talks that most trade-distorting farm
subsidies be phased out over a five year period, Trade Minister
Pat Carney said.
    "Agricultural subsidies and trade barriers have created a
vicious circle which continues to cause problems of
overproduction and low commodity prices," Carney told the House
of Commons.
    Carney was outlining the government's new position on the
farm trade problem that was tabled on Tuesday in Geneva in the
multilateral talks under the GATT (General Agreement on Tariffs
and Trade).
    While few details were released, Carney said the government
would also be pressing for an improvement in market access and
new measures to ensure countries do not erect artificial
barriers.
    "Under the Canadian proposal, all countries would have to
ensure that domestic policies and programs to address the
specific needs of their farm sectors do not distort trade," a
government background paper said.
    "Furthermore, in assessing the trade impact of programs,
credit could be given to countries which effectively control
the output of farm products," the papers said.
 Reuter
