Twelfth Meeting of the Tri-National Agricultural Accord

JOINT COMMUNIQUE

May 17, 2002

Nogales, Arizona



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.