OCTOBER 2, 2000
AGREEMENT ON INTERNAL TRADE NEGOTIATIONS
INDICATE FREE TRADE 'BUSINESS AS USUAL'
SASKATOON, Sask.--Canadian federal and provincial governments are working to expand the scope of the Agreement on Internal Trade (AIT), originally signed in 1994. Today, in Saskatoon, governments convened a by-invitation-only meeting to consult with selected groups on the progress of expanding the AIT.
The AIT restricts the power of sub-national governments (provinces, municipalities, and counties) to make laws, not just governing trade, but on any matter which might impinge on trade or investment. For example, the AIT may force public utilities to buy power from, and sell to, private corporations ("wheeling"). It may restrict the ability of provinces to set up marketing boards for farm products. And it may tie the hands of provinces wishing to raise environmental standards--the AIT was key in Ethyl's successful bid to have Canada's ban on its gasoline additive MMT reversed.
The AIT is just one part of Canadian governments' push to expand foreign trade and investment. Some of the agriculture-related results of those trade and investment efforts include:
Since the signature of the Canada-U.S. Free Trade Agreement, U.S. and other foreign multinationals have taken over the Canadian food processing sector. Foreign multinationals now own 79% of our flour mills, 93% of our barley malting plants, 90% of our pasta plants, and 74% of our beef packing plants. Most of these sectors were owned and controlled by Canadians 15 years ago.
Despite a quintupling of agri-food exports over the past 25 years, farmers are facing the worst income crisis since the 1930s.
Consumer food prices have risen steadily despite declining farmgate prices. Over the past 25 years, bread prices doubled and corn flakes prices rose six-fold.
Employment in agriculture and food processing in Canada is lower today than at any time in the last 25 years.
The AIT binds the hands of provincial and municipal governments to affect any future trade or investment deal signed by Ottawa and it paves the way for future agreements such as the Free Trade Area of the Americas (FTAA) and the next round of the WTO.
-- 30 --
For More Information:
Cory Ollikka, NFU President: (780) 383-2148
Darrin Qualman, Executive Secretary: (306) 652-9465