Sixteenth Meeting of the Tri-National Agricultural Accord

JOINT COMMUNIQUE

August 12, 2006

Banff, Alberta

Continuing a long-standing province/state relationship among Canada, the United States (U.S.), and Mexico, the Province of Alberta hosted the 16th annual meeting of the Tri-National Agricultural Accord in Banff, Alberta, August 9-12, 2006. Secretaries, Commissioners, Directors, Ministers and senior government officials from 8 Canadian provinces, 16 U.S. states and 15 Mexican states worked together to improve understanding and strengthen collaboration among the agricultural sectors of the three NAFTA countries.

As host of the 2006 Accord, the Hon. Doug Horner, Minister of Agriculture, Food and Rural Development in Alberta welcomed the delegations and emphasized the importance of agriculture to Alberta.

The U.S. delegation was headed by the Hon. J. Carlton Courter III, Commissioner of Agriculture for Virginia and President of the National Association of State Departments of Agriculture (NASDA). The Mexican delegation was headed by the Hon. Fermin Montes Cavazos, Nuevo Leon Director of the Corporation for Rural Development and President of the Mexican Association of the States Secretaries of Rural Development (AMSDA). The Canadian delegation was headed by the Hon. Doug Horner.

RURAL DEVELOPMENT TRI-LATERAL WORKING GROUP
The Rural Development Tri-lateral Working Group report was chaired jointly by the Hon. Doug Horner, Dr. Miley Gonzalez, New Mexico Secretary of Agriculture, and Director Fermin Montes Cavazos. The Working Group provided information about the meetings held in Oaxaca, Mexico in August 2005 and in Santa Fe, New Mexico in March 2006. At the Oaxaca meeting, agreement was reached on a framework of cooperation that included: (1) identification of market opportunities; (2) scientific research; (3) financial models; (4) education and training; and (5) conservation practices of soil, water and environment. Concrete actions undertaken and proposed included: an invitation to investigate risk management models in Canada; monitoring of the soil conservation project established in San Antonio, Texas; regional integration initiatives in the production of several commodities; visits to educational, training and nutrition programs, such as New Mexico’s Farm to School, Farmer in the Classroom, and a commercial kitchen. New Mexico also demonstrated its sustainable agriculture research and extension activities aimed at diversification and technology transfer to address producer needs.

One of the initiatives completed was the Try Healthy Forum and Trade Show hosted by Alberta on August 8-9 in Banff. The trade show highlighted healthy, organic and natural alternative products from Canada, Mexico and the U.S.. Delegates agreed to continue the Working Group. In the coming year, the Working Group will support and facilitate an exchange of in-person and electronic information on successful rural cooperative business ventures, including a forum on the models and structures which are successful for producers to adapt to their value chains.

The Working Group will also develop a strategic work plan for the next two years and will explore sharing information on rural development efforts that are beyond agriculture, such as infrastructure needs for rural communities, nutrition and marketing local products. The delegates agreed to add renewable energy and bio-based products to the framework as these projects can contribute to rural development opportunities. The next Working Group meeting is expected to be held in the state of Michoacan.

HARMONIZATION TRI-LATERAL WORKING GROUP
The Harmonization Tri-lateral Working Group report was chaired jointly by Director Fermin Montes Cavazos, the Hon. Mark Wartman, Saskatchewan Minister of Agriculture, and the Hon. Roger Johnson, North Dakota Commissioner of Agriculture. The Working Group provided a review of the meeting held in Santa Fe, New Mexico in March 2006 and a summary of their subsequent activities. They presented updated matrixes of products and harmonization issues as proposed by Mexico in the Santa Fe meeting. The Working Group agreed to put together a workplan as well as to formally communicate their recommendations to federal officials. The delegates recognized the importance of harmonization of sanitary and phytosanitary measures and standards (SPS) among the three countries in order to avoid unnecessary trade restrictions. It was proposed that a tri-lateral technical group be formed with state and provincial officials responsible for animal and plant health and food safety. They would seek participation of federal officials in an effort to help resolve harmonization issues and food safety concerns and meet at least once before the next Accord meeting.

TRADE REMEDY TRI-LATERAL WORKING GROUP
The Trade Remedy Tri-lateral Working Group session was jointly chaired by the Hon. Pat Bell, British Columbia Minister of Agriculture and Lands, the Hon. A.G. Kawamura, California Secretary of Agriculture and Food and Director Fermin Montes Cavazos. The Working Group invited an expert from each country to the Accord to speak on the applicability of current trade remedies to agricultural trade.

The presentations were helpful and delegates generally agreed that current trade remedies including anti-dumping may not be the best tools for a seasonal industry such as agriculture. Although alternatives to current laws were not identified, delegates discussed the importance of the World Trade Organization (WTO) negotiations and the impact on agriculture. The delegates requested that the trade remedy experts prepare a summary of their conclusions and provide recommendations on viable alternatives at the next meeting of the Working Group. Until mutually agreeable alternatives are developed, it is recognized that existing trade remedies will remain. In the interim, delegates encourage their federal ministers and officials to take appropriate steps to ensure current trade remedy rules are transparent and fairly applied.

MEXICO / CANADA
The Canada/Mexico Working Group meeting was co-chaired by Director Fermin Montes
Cavazos and the Hon. Doug Horner. The Canadian and Mexican delegations began their meeting with reports from federal officials on the activities and accomplishments of the Mexico/Canada Consultative Committee on Agriculture (CCA). The CCA report covered a range of issues including bovine spongiform encephalopathy (BSE) and other animal and plant health issues, biotechnology, joint research opportunities, rural initiatives, and issues relating to NAFTA and WTO negotiations.

The delegates reviewed the 2005-2006 workplan and exchanged information on a variety of issues. Mexico led a discussion on the potential impact of the U.S. farm bill on both countries’ agricultural sectors. Delegates also discussed concerns regarding trade distorting subsidies and the impact of SPS and anti-dumping provisions under NAFTA. A joint letter to the federal minister and secretary was signed by the co-chairs recommending that the two respective national governments study possible changes in the application of anti-dumping measures, and address the impact of trade distorting subsidies on agriculture producers and harmonization of SPS regulations.

Delegates expressed their concerns regarding the continuing obstacles to bilateral trade in live dairy heifers resulting from the current U.S. protocols relating to BSE. A joint letter signed by the co-chairs will be forwarded to senior U.S. officials requesting that the U.S. Department of Agriculture move towards amending the existing BSE rule governing livestock trade to address all breeding stock, including beef and dairy heifers, as soon as possible.

Mexico led a discussion on the Security and Prosperity Partnership of North America. Delegates agreed that this issue be addressed by the tri-lateral working groups for further discussion and consideration.

U.S. / MEXICO
The U.S./Mexico Working Group meeting was co-chaired by Secretary Miley Gonzalez and Director Fermin Montes Cavazos. The delegations were given an update from the U.S./Mexico CCA and agreed to more actively participate in the Committee’s activities and to include the CCA update as a permanent agenda item for the Working Group. The states of Texas and Sonora presented a report on the activities of the Agriculture Table at the Border Governors’ Conference emphasizing the relevance of training initiatives in issues related to animal and plant health.

Delegates exchanged information on issues included in the 2005-2006 workplan. The Mexican delegation mentioned that their federal government is currently drafting a national regulation for the law on organic products. Regarding child nutrition, the Texas delegate reported on the state’s activities being pursued in order to improve children’s nutrition levels and to reduce obesity. Several Mexican delegates showed interest in the actions that the state of Iowa is taking to increase the supply of energy through the use of renewable fuels.

Secretary Gonzalez invited the members of the Mexican delegation to join the upcoming meetings of the North American Agricultural Marketing Officials and the American Association of Warehouse Control Officials. He also provided a brief update on farm labor issues being discussed in the U.S..

U.S. / CANADA
The U.S./Canada Working Group meeting was co-chaired by the Hon. Doug Horner and the Hon. Patrick A. Takasugi, Secretary of Agriculture for Idaho. The delegates began their meeting with reports from federal officials on the activities and accomplishments of the U.S./Canada CCA. The report covered a range of topics including animal health and dairy issues, ministerial exemptions, potato cyst nematode, seed tags, labeling law and biotechnology. The Working Group commended the CCA in achieving substantial progress in a number of long-standing issues, such as pesticide harmonization, bluetongue import policy, and ministerial exemptions. Delegates look forward to continued significant progress by the CCA on Working Group issues.

The delegates reviewed the 2005-2006 workplan and exchanged information on a variety of issues. During the animal health discussions progress was reported on Canada’s development of a risk assessment for anaplasmosis, new regulations related to the removal of specified risk materials (SRM), and new import regulations for a range of U.S. products. In addition, delegates agreed to analyse and quantify the costs of rendering and disposal practices for SRM removal as well as those associated with emergency situations. Other issues covered included biosecurity, biotechnology, invasive species, and country of origin labeling. Reports were also made on avian influenza, Canadian farm programs, potato cyst nematode, and the next U.S. farm bill.

A letter was signed by the co-chairs urging their respective federal governments to implement legislation that would mandate joint U.S.-Canadian labels for pesticide products registered for similar use in both countries.

TRI-LATERAL ISSUES
Delegates concurred that the issue of continental trade in breeding stock requires immediate attention, with particular focus on current policies affecting tri-lateral trade in breeding stock. Delegates recommend that all countries continue to work towards reinstating trade in all classes of breeding stock.

NEXT ACCORD
During the meeting, the Mexican delegation extended an invitation to its Canadian and American counterparts to come to Monterrey, Nuevo Leon for the Seventeenth Meeting of the Tri-National Accord in 2007.

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Hon. Doug Horner, Minister of Agriculture, Alberta
Canadian Delegation
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Hon. Fermin Montes Cavazos, AMSDA President
Mexican Delegation
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Hon. J. Carlton Courter III, NASDA President
United States Delegation