PARIS -- Canada will reduce tariff barriers on some products from the world's poorest countries in an effort to pull African states out of poverty, federal officials have confirmed.
Canada will announce that it plans to drop such barriers at or before the meeting of the Group of Eight developed countries, planned for Kananaskis, Alta., next month, sources said on the weekend. The tariffs most likely to be dropped are those on textiles, said an official who asked not to be identified.
The official said the approach will be Canada's answer to the Everything-But-Guns initiative announced previously by the European Union, which is a tariff-lowering exercise intended to allow for increased import to Europe of African products other than armaments. Confirmation of the government's intention occurs as Prime Minister Jean Chrétien meets with South African President Thabo Mbeki tomorrow. The measure is seen as a key part of Canada's contribution to an African aid package that Mr. Chrétien is selling on his current trip to Europe.
"We won't do it exactly the same way [as Europe], but Africa will be open for business," the official said. The change will be included in Canadian proposals either in time for the G8 meeting, or in an announcement before then, the source said. The tariff-dropping measure is seen as somewhat symbolic given the relative dearth of trade with many African countries. But some states, such as South Africa and Lesotho, are significant producers of textiles and would like to see those tariffs dropped.
Canadian officials first broached the subject of tariff and non-tariff reductions in Monterrey, Mexico, earlier this spring.
Canada has balked at such reductions from fear that its own textile industry, centred in Montreal, would be badly damaged. However, the developing countries say the resistance runs counter to the effort to help them cope with low living standards.
Mr. Chrétien has been charged with putting together a G8 response to the New Partnership for African Development (NEPAD).
A key factor of the NEPAD idea is to offer African countries aid based on how successful they are at democratizing. Some G8 members, notably France, are said to be less captivated with that notion, given their colonial ties to some of the countries in Africa.
Mr. Chrétien has so far met with leaders of the European Union and Italian Prime Minister Silvio Berlusconi on the matter. Today, he meets with French President Jacques Chirac and tomorrow with British Prime Minister Tony Blair. The matter of cash contributions to the proposal has already been essentially settled, the official said, with Canada offering to increase its international aid package by 8 per cent per year over nine years, an amount that would bring it up to about .4 per cent of its gross domestic product.
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