OTTAWA (CP) - Midway through global talks aimed at ending trade-distorting farm subsidies, Agriculture Minister Lyle Vanclief did not sound optimistic Friday.
"It's unclear at this point whether we will be able to close the considerable gaps that do exist," Vanclief said from the Mexican resort of Cancun where officials from the 146 members countries of the World Trade Organization are meeting.
"There is still a long way to go. . . . a lot will depend on the dynamics of the negotiations . . . Things can change very quickly - or they may not change at all."
Eliminating farm subsidies has become the top priority for the WTO meetings, essential to clearing the way for talks on other global trade issues. And for a trading nation like Canada, clear and open channels of commerce are vital.
But heading into this round of talks, there wasn't much optimism among either rich members or the less-developed countries that make up the WTO.
Many countries have long complained that the United States and the European Union, which are blamed for providing among the world's heftiest subsidies to their producers, seem reluctant to make any real changes.
Canada, also represented at the talks by International Trade Minister Pierre Pettigrew, wants to see an end to both export subsidies and market-distorting domestic farm support programs.
Such programs often encourage farmers in wealthier countries to produce far too much, driving down prices and destroying the livelihood of farmers in less developed countries where there are no subsidies.
Farmers in Western Canada complain that they can't compete with their American counterparts because of the higher subsidies south of the border.
Thousands of protestors, led by farmers from around the globe, have been rioting on the streets of Cancun outside the meetings that began Wednesday.
Inside the meetings, some countries have broken into trade blocks to try to crank up pressure the U.S. and EU, Vanclief said.
The so-called Group of 21, led by Brazil, India and China, has emerged "as a significant player in the negotiations and as a counterforce. . .particularly to the United States and European Union," he said.
Vanclief also reiterated what has become a popular line among Canadian officials, which seems aimed at downplaying public expectations: "What we want is a good deal, not a quick deal."
Critics have said the WTO's self-imposed deadline of 2005 is going to prove impossible to meet for the complicated talks that began in Doha, Qatar in 2001.
It's generally agreed that elimination of agriculture subsidies is key to moving ahead in other areas on the WTO agenda. Those range from reducing tariffs on industrial goods, improving access for service industries and deciding whether to start new negotiations in the controversial area of investment rules.
While much of the criticism has focused on European and American farm subsidies, the U.S. and Europe have turned on the Canadian Wheat Board, complaining it provides illegal export subsidies.
Vanclief dismissed such criticism of the country's grain marketing agency and said it won't be on the table.
The wheat board offers short-term financing but Vanclief insists that the time is limited to about 120 days and can't be considered an export credit.
"The wheat board is not, in any way, shape or form involved in export subsidies," said Vanclief. "The Canadian Wheat Board is a marketing organization."
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