Presentation Transcript
Slide1: Canadian Agriculture, and International Trade
“A country that depends on exports, imports its misfortunes”
Stephen Leacock, 1941
Trade has always been a big part of what Canada is all about
Trade and trade routes motivated discovery (short cut to the East)
Early development in the East the result of trade interests
supply of resources to the colonial powers (Britain, France)
Exploration and settlement of Western Canada: driven by trade interests
Company of Adventurers
The CPR + Macdonald’s National Policy (1878)
Slide2:
Fortunes and misfortunes of the 1600’s – 1900’s: All linked to trade
Late 1700’s – Napoleonic Wars – Louisiana Purcahse (1803)
1822 - Canada Trade Act
1840 – Corn Laws – 1849 Montreal Manifesto
1854 – Reciprocity Treaty
1900’s – prosperity linked to agr. exports
1911 – Federal Election (Laurier loses ….. again)
Late 1800’s MacKinley Tariff
1930’s - Smoot Hawley Tariff
Post WW II and future prosperity depends on our success in international trade
Canada Depends on Exports 1971 = $21 Billion 2005 = $500 Billion: Canada Depends on Exports 1971 = $21 Billion 2005 = $500 Billion
Importance of Trade to Canada Exports are a significant part of our economy (output, income, employment) $1.3 Trillion GDP (2005): Importance of Trade to Canada Exports are a significant part of our economy (output, income, employment) $1.3 Trillion GDP (2005)
Exports, GDP and Current Account for Some Trading Partners : Exports, GDP and Current Account for Some Trading Partners Source: CIA World Fact Book (2006 estimates)
Canadian Trade: All Goods and Services (Current dollars $million): Canadian Trade: All Goods and Services (Current dollars $million)
Slide7: 2005 trade balance with US = $150 Billion
The US is our most important trading partner: The US is our most important trading partner 85% of exports go to the US 60% of imports come from the US
Both have declined after 2001
Agri-Food Trade is Important 62% of Agr Exports go to the US: Agri-Food Trade is Important 62% of Agr Exports go to the US
60% of Agri-Food Imports come from the US Trade Balances: Total $9 Billion US $6 Billion : 60% of Agri-Food Imports come from the US Trade Balances: Total $9 Billion US $6 Billion
1980’s and 1990’s The Three Amigos : 1980’s and 1990’s The Three Amigos 1989 CUSTA 1993 NAFTA 1995 WTO Uruguay Round
Conditions Leading to These Agreements 1970 - 80's
Agriculture becoming more trade oriented as part of the early process of globalization
Government intervention escalating, particularly during the 1980's (US/EU)
programs based on support on a per unit of production
> encouraged more production
> coupled support
interventions very trade distorting and costly to consumers and governments
Benefits and Costs of Support to Farmers in Industrialized Countries (1986-87) ($Billions) : Benefits and Costs of Support to Farmers in Industrialized Countries (1986-87) ($Billions) Transfer cost: $1.42 per dollar transferred
Industrialized countries agreed that there would be benefits from liberalizing trade
ITO, GATT, WTO and the Uruguay Round (1986-1995): ITO, GATT, WTO and the Uruguay Round (1986-1995)
Principle objectives of the Uruguay Round : Principle objectives of the Uruguay Round
CUSTA and NAFTA : CUSTA and NAFTA
Some Results from CUSTA (1989): Some Results from CUSTA (1989)
NAFTA 1991-93 : NAFTA 1991-93
NAFTA Outcomes: NAFTA Outcomes 1 - extended CUSTA tariff reductions to Mexico over periods of up to 15 years
2 - eliminated quantitative restrictions (e.g. import quotas)
3 - SM still protected
4 - Tri-national panel to deal with subsidy issues
5 - commitment to work towards elimination of export subsidies
6- technical, sanitary and phytosanitary regulations and standards still sovereign
must be based on science criteria
7 - strict limits on export taxes and no new tariffs
8 - Commission for Environmental Cooperation (CEC)
GATT/WTO Agreement (1986 - 1995) : GATT/WTO Agreement (1986 - 1995)
Some impacts on Canada: Some impacts on Canada
Bottom Line: Bottom Line
What’s Ahead - Doha Round 2001 - ??: What’s Ahead - Doha Round 2001 - ??