Canada should dismantle "significant" trade barriers it uses to protect its dairy and other agricultural producers, the World Trade Organisation (WTO) said on Wednesday. In a review of Canadian trade policies, the WTO said Ottawa applies tariffs exceeding 200 percent on some imports of chicken, turkey, eggs and dairy.
Ottawa runs a monopoly on western wheat and barley sales at the Canadian Wheat Board. The country also retains foreign investment restrictions in fishing, mining, energy, air transport, telecommunications, and cultural activities such as music, contributing to notable trade distortions and raising retail prices.
"Reform in these sectors could lower costs to Canadian taxpayers and consumers while increasing productivity and competition in the domestic market," said the WTO, which regularly reviews the trade policies of member states. It said overall government support to Canadian agriculture had increased since the WTO's last review in 2003, mainly due to weather problems and other one-off events.
Canada's farm subsidies remain below the average of Organisation for Economic Cooperation and Development (OECD) members, which include the United States and the European Union.
Trade in goods and services accounted for 72 percent of Canada's gross domestic product in 2005. The United States remains the country's top trading partner, but the WTO said Chinese goods made up an increasing share of Canadian imports.