Mixed Signals Undercut Canadian Trade Policy: C.D. Howe Institute



    TORONTO, April 5 /CNW/ - While Canada has launched a challenge of
milestone significance over US Farm Bill subsidies for corn and other grain
products, the federal government lacks a coherent policy on trade
liberalization and is instead sending mixed signals, according to an e-brief
released today by the C.D. Howe Institute.
    In the study, "American Corn and Canadian Trade Actions: One Step
Forward, Two Steps Back," Lawrence L. Herman of Cassels Brock & Blackwell LLP
says that by challenging US Farm Bill subsidies for corn, soy and other grain
products at the World Trade Organization, Canada has initiated what will be
one of the WTO disputes of the decade. Over a dozen other countries, plus the
25 WTO members from the EU, have so far filed notices to join the Canadian
side. The question is: does the corn case reflect a principled effort by the
government to take pro-market positions in multilateral forums? No, he
answers, judging from Canada's contradictory moves on tariff protection for
the dairy industry and insistence on supply management for poultry, eggs and
dairy products. "Several factors raise doubt that Canadian trade policy will
ever be more than immediate responses to parochial pressures," concludes the
author.

    The e-brief is available at: www.cdhowe.org/pdf/ebrief_42.pdf.





For further information:

For further information: Finn Poschmann, (416) 865-1904,
cdhowe@cdhowe.org


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