Canadas Strategic Approach to International Trade and Market Access - - PowerPoint PPT Presentation

Canada’s Strategic Approach to International Trade and Market Access for the Agricultural Sector

Grain World Conference November 13, 2018

Frédéric Seppey, Assistant Deputy Minister Agriculture and Agri-Food Canada

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Framework for Growing Agriculture Exports

Canada’s Objective: Grow agriculture and agri-food exports to at least $75 billion annually by 2025 Key Question: How do we meet our objective? Strategy: Establish, influence, maintain, and enforce rules across various fora, while also pursuing trade diversification

Canada is a Trading Nation

FTAs in Force Signed FTAs Ongoing FTA Negotiations Ongoing Exploratory FTA Discussions

• Rapid changes and uncertainty; protectionism is re-

emerging

• Challenges to the rules-based international system
• Non-tariff barriers disrupt trade and undermine market

access

• Free Trade Agreements (FTAs) between other countries can

place Canadian exports at a competitive disadvantage

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The Global Trade Context is Challenging

A multi-pronged approach is needed

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Canada Has Many Trade Policy Levers

Setting the Rules (WTO, FTAs) Enforcing the Rules (Dispute Settlement, Trade Remedies, Safeguards, WTO Committees)

Promoting and Defending Science-Based Regulations (International Standard Setting Bodies, Advocacy)

Leveraging Multilateral Institutions (FAO, G7, G20, APEC) Key Question: How do we meet our objectives?

• Agreement on September 30, 2018
• Will preserve existing agriculture commitments between

all USMCA Parties

• Once implemented, the USMCA will further bring

together an already highly integrated industry

• Maintains duty-free trade, achieves ambitious disciplines

related to agricultural biotechnology, and establishes a modernized SPS chapter

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United States-Mexico-Canada Agreement (USMCA)

FTAs: Setting the Rules

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Transformational FTAs (CETA, CPTPP)

FTAs: Setting the Rules

Recent agreements open doors

• Better market access for sector

– Achieved by addressing tariff and non-tariff barriers

Canada has an edge

• Leveraging opportunities can grow exports
• First mover advantage over competitors

Strategic Actions

• Advocacy work to assist sector in realizing significant market

access gains

• Maintain/Expand market access gains when opportunities arise

(e.g., CETA-UK/Brexit; future CPTPP accessions)

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Trade Diversification

FTAs: Setting the Rules

Canada looking beyond existing FTA partners

• Broad FTA agenda
• FTAs with growing/emerging markets
• Agreements with non-traditional partners

Necessary due to uncertain trading environment

• Cannot rely on one large trading partner
• Preferential access to emerging markets as a competitive advantage

Strategic Actions

• Exploratory discussions and FTA negotiations
• Scale of agricultural market access gains (and trade-offs)
• Ambition in rule-making (WTO + obligations)

WTO is the lynchpin of the global trading system The Agreement on Agriculture is the only forum to address

• Trade or production distorting domestic support
• Export subsidies, export financing, agriculture exporting STEs,

international food aid

Strategic Actions

• Ongoing monitoring via notifications, questions on recent policy

developments, and working with like-minded WTO Members.

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International Rules and Trade in Agricultural Products

WTO: Setting the Rules

Nairobi Decision on Export Competition

• Eliminated export subsidies
• Established new rules on export financing
• New requirements for agriculture exporting state trading

enterprises

• Prevent commercial displacement by international food aid

Strategic Actions

• Domestic support – limit future distortions
• Export competition – ensure international rules are fair
• Market access - no new layers of protection

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WTO is a Forum to Change Rules and Level the Field

WTO: Setting the Rules

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Settling Disputes Can Be Required

Enforcing the Rules

Objectives:

• Use formal dispute settlement through the WTO or FTAs as

an option of last resort

• Other options include: anti-dumping action, countervailing

duty measures, and global safeguards

Priorities:

• U.S. imposition of steel and aluminum tariffs

Results:

• U.S. mandatory Country of Origin Labelling (2008-2016)
• EU biotech dispute

Non-scientific factors create trade barriers and/or block new international standards Pressures make unscientific decisions more likely

• Innovation in agriculture is key but the pace puts stress on regulatory

authorities

• Consumers are preoccupied with production practices and possible

impacts on health and the environment

• Unscientific reports influence consumer opinion

Strategic Actions

• Influence the development of science and evidence-based standards
• Ensure the integrity of the technical trading system
• Collaborate to develop approaches to technical issues (e.g.,

regulatory compliance, lack of harmonization)

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International Rules Based on Scientific Evidence are Fundamental to Global Trade

Promoting and Defending Science-Based Regulations

Progress is made in different fora Strategic Actions

• GLI – 6 international meetings to advance trade-facilitative approaches to managing LLP
• ISSB Engagement – advanced scientific work of the Codex meeting on pesticide residues

to support adoption of pesticide MRLs

• Pesticide MRLs – continue to work with industry, international institutions and countries to

address missing and misaligned MRLs

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Aligning Regulations Facilitates Trade

Promoting and Defending Science-Based Regulations

International Standard Setting Bodies (ISSBs)

• CODEX
• International Plant

Protection Convention

• World Organization for

Animal Health

International Institutions

• OECD
• Convention on Biological

Diversity

• Food and Agriculture

Organization of the United Nations

• FAO/WHO
• WTO

Plurilateral Initiatives and Advocacy

• Global Low Level

Presence Initiative (GLI)

• MRL coalition work
• Like-Minded Group on

Innovative Agricultural Technologies

Multilateral institutions provide another forum

• Advocate science-based approaches to benefit developing countries,

protect environment at G20, FAO, APEC, IICA, G7

• Invest financial and technical contributions to leverage multilateral
• rganizations’ impartiality, expertise and networks to inform countries

about science-based trade, and pursue projects that solve problems

Strategic Actions

• FAO – share information, best practices, support Codex (e.g., science

advisory panel)

• G20 – advocate open agri-food trade to fight global poverty and hunger
• APEC, FAO, others – projects encouraging science-based approaches

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Multilateral Advocacy Furthers Canadian Aims

Leveraging Multilateral Institutions

Key Questions

• In looking to Canada’s $75 billion export target

by 2025: – Are there areas where government activity needs to be increased/lessened? – Are you adjusting your approaches and strategies to fully seize new opportunities?

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Thank You

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