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Senior officials from 8 Canadian provinces, 15 Mexican states and
23 U.S. states met in Nogales, Arizona from May 15-17, 2002. This
was the twelfth in a series of rotating annual conferences intended
to improve understanding and strengthen collaboration among the
agricultural sectors of the three countries. Delegates took advantage
of the opportunity to tour the Nogales border operations. The meeting
included a one-day conference on Biosecurity, Borders and Trade,
addressed by U.S. Secretary of Agriculture, Ann M. Veneman; Javier
Usabiaga Arroyo, Secretary of Agriculture for Mexico and other senior
officials from the three NAFTA countries, as well as prominent private
sector and academic specialists on border trade issues. The biosecurity
conference was opened with words of welcome from Hon. Jane Dee Hull,
Governor of Arizona, and Hon. Armando López Nogales, Governor
of the State of Sonora.
The
Canadian Delegation was headed by the Hon. Ernest Fage, Minister
of Agriculture and Fisheries, for the Province of Nova Scotia. The
Mexican Delegation was headed by Hon. Dr. Enrique Salinas Aguilera,
Secretary of Agricultural Development for the State of Coahuila
and President of the Mexican Association of Secretaries of Agricultural
Development (AMSDA). The U.S. Delegation was headed by Hon. Billy
Ray Smith, Commissioner of Agriculture for the State of Kentucky
and President of the National Association of State Departments of
Agriculture (NASDA). The meeting was hosted by Hon. Sheldon R. Jones,
Director of Agriculture for the State of Arizona.
During
the meeting, delegates reviewed accomplishments of the bilateral
working groups from the past year, and set plans for cooperative
efforts over the coming year.
The
Mexican and Canadian delegations discussed at length, their shared
concerns regarding the high subsidy levels and potential trade impediments
contained in the U.S. Farm Bill. The escalation in subsidies is
seen as a major setback to international efforts to reduce agricultural
subsidies and to liberalize trade. It was noted, among other implications,
that the lower commodity prices resulting from the new subsidies
will worsen the adjustment difficulties facing Mexican agriculture
when NAFTA tariffs are eliminated next year.
It
was agreed that the Canadian provinces and states of Mexico would
encourage their respective national governments to closely examine
the consistency of all relevant aspects of the Farm Bill with the
obligations contained in the NAFTA and the WTO agreements.
Joint
Canadian-Mexican task groups were established to cooperate on appeals
for the U.S. to recommit to a positive role in agricultural reform,
as well as advocate that the implementation of new U.S. regulation
on labeling and certification of Country of Origin occur in a manner
which is least disruptive to continental trade. In other business,
a report was received from the Mexico-Canada Agricultural Consultative
Committee. This covered the eighteen element Work Plan signed in
February 2002. Updates were also received on provincial/state projects
related to beans and to phytosanitary and anti-dumping provisions
under NAFTA. A new project aimed at facilitating hay trade was agreed
upon.
The
U.S. and Mexican delegations received a report on the newly formed
U.S.-Mexico Consultative Committee on Agriculture (CCA) and the
sixteen items in the 2002-2003 Action Plan. The delegates endorsed
the proposal to establish an advisory group to the CCA formed from
the U.S.-Mexico Accord Working Group. The Mexican delegation expressed
its concerns with aspects of the recently passed U.S. Farm Bill,
noting high expenditure levels and the expansion of commodity coverage,
and suggested that the CCA might be asked to examine the Bill's
repercussions.
It
was agreed that automation of export and import documentation offers
the promise of more efficient trade and improved documentary security.
New rules requiring physical inspection of meat cargoes on the Mexican
side of the Mexico/U.S. border present implementation challenges,
as well as opportunities to review and improve current procedures.
The pilot project in automating both countries' export certificates,
initiated in an earlier Accord meeting, offers a model for progress.
Animal health cooperation under the auspices of the Border Governors
Agriculture Working Table offers a model for cross-border solutions
to sanitary and phytosanitary problems. The U.S. Animal Health Safeguarding
Review also indicates areas where trade surveillance can be improved.
Both delegations consider a joint effort to address farm labor and
related migratory issues a high priority.
United
States and Canadian delegates received reports from federal officials
regarding the activities and accomplishments of the United States/Canada
Consultative Committee on Agriculture (CCA) and on an analysis of
comparative levels of domestic support for agriculture indicating
that the aggregate subsidy levels for the U.S., Canada, and Mexico
are at similar levels. However, large disparities prevail in the
grains and oilseeds sectors. Reports were received on joint state/provinces
work items involving a number of cross-border regional conferences,
positions on biotechnology, animal health issues affecting trade,
seed certification and achieving harmonized regulation and pricing
for pesticides between the two countries.
Joint
projects were established on Country of Origin Labeling, the northwest
nursery and floriculture products trade, and on common challenges
facing northeastern apple production and marketing. The Canadian
provinces expressed concerns with the new U.S. Farm Bill, especially
the expansion of potentially trade distorting support to lentils,
dry peas and small chick peas and apples, and fears that world agriculture
reform efforts would be seriously compromised. Representatives of
the United States federal government stated that the U.S. position
at the World Trade Organization has not changed and that their WTO
subsidy commitment levels will be respected. A Joint State/Provinces
Working Group was established to address concerns that the new country
of origin labeling regulations could disrupt mutually beneficial
trade flows and impose higher costs for consumers and businesses
on both sides of the border.
At
the close of the Nogales meeting, the Canadian delegation extended
an invitation to their Mexican and U.S. colleagues to come to Quebec,
for the Thirteenth Meeting of the Tri-National Accord, in 2003.

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