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AWB monopoly on WTO table

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    AWB monopoly on WTO table

    Charlie;

    I see this on the US Wheat Associates web site;

    "1. AUSTRALIA OFFERS TO PUT AWB ON THE WTO NEGOTIATING TABLE, CANADA BALKS
    After months of stagnation, agricultural negotiations in the WTO trade talks may be picking up steam. The European Union recently announced that it will, as part of the Doha negotiations, accept that all countries must set an end date for the abolition of agricultural export subsidies. It asked for negotiations over state trading enterprises in exchange and the Australians replied positively, presenting the possibility that the AWB (formerly the Australian Wheat Board) could be dismantled if the U.S. and EU allow greater access to their domestic markets.

    According to an article by Blair Speedy in The Australian, Australia Trade Minister Mark Vaile spoke at a National Australia Bank agriculture trade forum and "indicated the abolition of the single desk could be discussed in multilateral talks over the reduction of U.S. and European agricultural subsidies."

    In an earlier reaction to the EU announcement, U.S. Trade Representative Robert Zoellick had pointed out that "the United States has consistently advocated ambitious reforms in the Doha negotiations, particularly in all three pillars of agriculture: the elimination of export subsidies; substantial, harmonizing cuts in trade distorting domestic subsidies; and, a significant increase in market access. The goal of eliminating export subsidies has been important to the U.S. and others for a long time. The United States already offered to eliminate U.S. export subsidies."

    "We look to others to show a similar spirit by stating their willingness to end monopolies in state trading enterprises and differential export taxes," Mr Zoellick said.

    The Canadians, however, appear to fear the prospect of negotiations. According to Reuters news service, Canadian officials said the Canadian Wheat Board is "off limits" in world trade talks."

    It is clear that Canada produces much more premium wheat than there is a premium market to "extract" premium prices from...

    4-5mmt of market for 12-14mmt high quality CWRS grown in 03-04 for instance.

    I still have not heard any retraction of the CWB theory that they (the CWB) extracts a monopoly premium by price discounting and dumping 8-10mmt of CWRS at low prices to extract a yet higher premium on the remaining 4-5mmt.

    Have you heard any further CWB statements on this "monopoly extraction" theory, since the SPARKS 2003 study refuted it as false?

    Why exactly are we holding on to a institution that insists on dumping our wheat at discount prices... while creating F.E.A.R. (False Expectations About Reality) to maintain power that are obviously based on insanity and are damaging to Alberta and Western Canadian grain farmers?
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