RESTRICTED COM. AG/W/32/Add June 1968
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1 GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED COM. AG/W/32/Add. 30 June 1968 Special. Distribution Agriculture Committee..Original: English CANADA Information Supplied -in espect of A. B. C. Production: production treasures and policies Protection and support measures and policies I. Internal support measures -and policies II. Measures at the frontier Consumption and internal prices Page International trade and prices
2 COM.AG/W/32/Add. Page 2 A.1. Statistical data ontotal volumeofproduction A.2. Trends in production andestimates for : 196 Total Volume of of Production ih Green Wright ('000 lb) (m.t). 153, l2 acres s mds Total 69.6 _', ,195 Aereage (heetares) 3.'4, 52 40, 20/4 52,691 AverageYield (lb. per acre),09," 1,00 (kg. per hectare 2,015 1.,905 2,016 It is estimated that production will reach million lbs. ( thousand ),11 c.s:' -es i level of exportdemand could lead tovariations from these figures of up to 15 per cent, A.3. Statistical data on carry-over stocks and stockpiles The Governments of Canada and of its Provinces do not stockpile tobacco. Privately held stocks of re-dried unmanufactured tobacco on 31 December of the four most recent years were: A Total Stocks ('000 m.t) ,2 8'5 5 Factors which affect production Old Leaf Stocks (1000 m.t. ) 8: In Ontario the producers of flue-cured tobacco operate a marketing board which controls 90 per cent of Canadian tobacco production and which has full control over the acreage planted each year by its members. Meetings are held with tobacco buyers and market surveys are carried out to estimate an annual production target. This figure is used to determine an allotment on the basis of which acroage allocations are made to individual growers.
3 COM. AG/W/32/Add. Page 3 Average vields have risen from 1,45 kg. per hectare in to 1,29 kg. in , and more recently to 1,99 kg. This reflects improved technology and increased capital investment. Canadian production units are large average crop exceeds 35 acres per farm for flue-cured type) and are very efficient in terms of optimum use of fertilizers, pesticides, machinery and equipment. A.5. Government measures influencing production The Governments of Canada and Ontario conduct a continuing intensive programme of research into tobacco and have created extension services for tobacco growers,
4 COM. AG/w/32/Add. Page 4 B. Protection and support measures andpolicies B. I Ịnternalsupport measures and policies 3. I4. Averagereturns toproducers 19>J, ; B.I.5 Thedetermination of returns to producers The Canadiantobacco crop is sold at auction without guaranteed prices; Subsidiesor supports. Prices on the auction floor are determined by the interplay of such factors as the size of the crop, the level of existing stocks, and demand, both from domestic users and exporters of Canadian leaf. As Per cent of Conadas leaf tobacco production is exported, leaf availabilitics in and trading policies of competing exporters has an important bearing on price levels at the auctions. B.II. measures at the frontier The only measures maintained at the frontier are customs duties the schedule of which is set out below. The duties include changes resulting from the Kennedy Round. Tariff British Item Preferential Favoured- General Tobacco, unmanufactured, for excise purposes under conditions of the Excise Act, subject to such regulations as may be prescribed by the Minister: Of the type Turkish: commonly known as Unstemmed per pound 11 -ei. iccte 11 40O.c-tz Stemmed per pound !-Xi,
5 COM. AG/W/32/Add. Page 5 Tariff Item British. - Preferential Most- Favoured- Nation General N.o.p.: Unstemmod GATT per pound per pound 40 centsc' 40 `- S 20 cents 20cents GATT 14204;-1 Stemmed GATT Unstemmed, when imported by * cigar manufacturers for use exclusively in the manufacture of cigare in their own * factories par pound per pound per pound 12--centso ;": E 60 cents60 0 c t; 60 :e:t 30 cents 30 cents GATT Stemmed, when imported by cigar manufacturers for use exclusively in the manufacture of cigars in their own factories per pound Q 20 cc»- ; N. o.p.: Unstemmed, when imported. by cigar manufacturers for use as wrappers in the manufacture of cigars in their own factories per pound- New Zealand Trade Agreement Tobacco, unmanufactured, for excise purposes under conditions of the Excisc Act frco Union of South Africa Trade Agreement British Preferential Note: In accordance with Article III of the Union of South Africa. Trade Agreement, tobacco, unmanufactured,5 for excise purposes under conditions of the Excise Act is entitled to entry free of customs duty on account of the treatment accorded to importations of similar tobacco from New Zealand. cents 5 5 cents 40 cents
6 COM. G/W/32/Add. Page 6 C. Consumption and internal prices C.1. Statistical data on consumption Leaf Tobacco Consumption by Canadian Manufacturers (estimated weight in 1000 re-dried leaf basis) Total Tobacco Flue-cured C.2. Trends in consumption and estimates for 190 Consumption of tobacco leaf is of course intimately related to the consumption of manufactured tobacco products. Canadian exports of leaf will be affected inter alia by growth of consumption throughout the world and by changes in consumption patterns in other countries. Consumption of tobacco products in Canada is influenced by a number of factors including fiscal taxes. During 196 the rate of consumption growth declined to 1 per cent Per anmum fromthe previsus level of 2percent.It is, however, expected that by 190 consumption growth will have returned to 2 per cent per annum. As imports constitute only about 2 per cent of total requirements of leaf by Canadian manufacturers increases in consumption of tobacco products will have a direct impact on consumption of domestic Ieaf, C.3. Retail and wholesale prices Not applicable. C.4. Factors which condition evolution of internal consumption See under "Trends in consumption". C.5. Policies affecting consumption The effects of taxes on manufactured products on domestic consumption of Canadian leaf are mentioned under "Trends in consumption". The Canadian Government does not promote domestic consumption. Canada does not include tobacco in welfare or foreign aid schemes and there are no programmes for disposal of tobacco on non-commercial terms.
7 COM.AG/W/32/Add. Page D. International trade and prices D.1. Statistical data on the volume and value of exports andimports by source and destination The following tables show exports and imports for all classes of unmanufactured tobacco. The value figures quoted are "declared valued on an f.o.b. port basis, in Canadian dollars. For exports the statistical material does not differentiate between types of tobacco but between stemmed and unstemmed tobacco strips, and no separate statistics are available for stems and scrap.. For imports, there is a distinction between stemmed and unstemmed tobacco but, because of the limited number of importers involved, the Offical Statistics Act precludes a more precise statement by type of tobacco. EXPORTS OF Country 1965 lucs-eurcoo Leaf and Strips Virginia, :Flue-cured: United Kingdom Ireland Belgium-Luxemburg Denmark Finland Germany, F.R. Netherlands Norway Portugal Sweden Switzerland Cyprus Israel Syria Ghana Sierra Leone Cameroon Rep. Spanish Africa Hong Kong Malaysia Australia British Guiana Uruguay Br. Honduras Barbados Jamaica Leeward-Windward Is. Trinidad-Tobago Puerto Rico United States 32,536, , e 94U 28,524 14,18 331, , , " '21 9G,039 4, à ,484 36, , , , ,131 36,98 52,00 162,110 45,216 22,61 131, ,14l 5,40 125,51 21, ,6A4 29, l UNMANUFACTURED TOBACCO 1966 lbs, 30,45, , ,103 11,669 /40O, ,233 35,08 66,633,200 35Y100 2,02 29,636 5,600 64,906 4`2,) C,636 22,480 63,92 54,398 90,o ,940 38,504 -/.04, , lbs. $' ,90,19 286, ,62 1,11-, c8 12,,66 603,495 9,000 6e , ,106,443 8, l, , , , , , ,J ,030, ,556 (continued) 4,
8 COM. AG/W/32/Add. Page8 County Leafand Strips Virginia, Flur-cured (cont'd): Malta and Gozo Libya Fiji Singapore Value in US$'000 Leaf and Strips, -Burley United Kingdom Belgium-Luxemburg Denmark Germany, F.R. Netherlands Norway Cameroon Rep. Hong Kong United States EXPORTS OF UNMANUFACTURED TOBACCO (cont'd) bs. C$'000 1bs,. ' lb s..s 000, 1, , e12. 3-,S54,026 33,102 35,63o,~1 36,5aS 4,261,091 46eỌ S,852.e0O'6 33.,102 15(3*Z2 3S, leO9l 46, (1, 62/f) (30,619) (16,' -) (33, ) 59,31 9,136 24, ` ,35` 21,43 19,992 52, , , , 2e 1;, ll, 250 i2 n/-i n 21031U,3 L ')J i r} O k D2 '1 É_ 1,3615-L6 4,500 33,100 (18,16>)(4230) 442,3236 4,391 60,109 41,,39 2., 033,631 1 y3'4 ',9Ù-5926 le , Value in US$'000 (954) (1,215 ) (902) (1,259) (249) (430) ni. nje Leaf and Strips, n.e.s. United kingdom Denmark, Netherlands Spanish Africa Australia Leeward-Windward Is. United States Germany F.R. Chile Value in US$' , , 042 5, , ', ,91 9, 0 21l,1eil ,449 1,315 orr /et~ /UOf U 1'JU 54-, , , (246) (119) (l06) (56) 5,4 9,000 3, (499) (306)
9 COM. AG/W/32/Add. Page 9 IMPORTS OF UNMANUFACTURED ' '00 Tobacco, Bright Flue-Cured Unstemmed Republic of South Africa - - Philippines Thailand United States 25, TOBACCO bs, , lbs.. 494,920 2, ,32 60Y , Value in US$'000 (125) (203) (2) (53) (26) (190) Tobacco, Cigar Leaf, Unstemmed Denmark Netherlands Brazil Cuba Honduras Nicaragua United States Dominican Republic Quantities in 1,694 l64, 881, 51 90, , , , p G1 55 M , q , 859 2, e 252 2, ,496 3,95 i n 1,453,y20 - I- 1U41,O19,610) -I n 21U,4.0,4.9%t) 3e ,520 2,83 1.,1Q;610 2,611 Value in US$'000 (659)t,624) 2 13 (89) (35 51-'D) (535) (25415) TobaccoṬurkish Type, France Greece Turkey Brazil United States Rhodesia Unstemmed 96,610 89,252 r}, , 08 Z-I ,628 39, ,452 29, I.,2,645 19g , 209,604 1fl U5,0 U9 t5 651, Value in US$'000 (95) (1'13) (3?) (8) (295) (415)
10 Page 10 Country IMPORTSOF UNMANUFACTURED TOBACCO (cont'd) *,. -M $' 1bs $! s. c96 Tobacco, Unmanufactured, Uns Netherlands. d- Brazil United States 101, ICSD-0 22,2C 242,M46k ,0215,452 31, 3-55 i23,j09 ' ,365 22, ,023 24,450 3"9 13 t-) , '> 186., , Value in US$'000OGO0 (1 8) (189) (84.) (116) (88) (603) Tobacco, Cigar Leaf, Stemmed Netherlandsds Cuba 16,E831 Puerto United States 4.Z,1 5 Dominican Rep. 1' nn 2C 46,41 538,9`2 _ 5, ',661 _ 1, ,4`3 1,,y) %J , 2,;,,.t i4,4c: 1, , S20,303 1,306 Netric tons Value in US$'000 (351) (1, 023)L (905). (32), (l.208) Tobacco, Unmanufactured, Stemmedn.e.s. United Kingdom - Netherlands - - Rep. of South Africa - - Zambia Brazil Colombi a Mexico United States 941, , 82 _ 2,2328 _ 3,252-43,11 _ 2e45,230 _ 65,834 _ 5,544l ,501,94 9/1, e1, ,410,205 1,415 Value in US$'000 (205) (392) (1,093) (1,309) (42) (56) g lyll8
11 COM, AG/W/32/Add. Page 11 D.2. Levels of export prices provailinginvarious market Flue-cured type tobacco accounts for most of the Canadian export trade. In the following table the average unit values of exports of fluecured tobacco are shown. These figures which include stemmed and unstemmed forms show the average price received by Canadian shippers after processing or re-drying. Stems are not included. The average value is calculated on the basis of declared weight and value. The-difference in. prices of exports to different markets can be attributed to thefact that the form of the tobacco exported varies by markets and shipper..australia Barbados British Guiana Belgium-Luxemburg Cameroon Rep. Cyprus Czechoslovakia Fiji Finland Germany, Ghana Hong Kong, Israel Jamaica F.R. Leeward-Windward Is. Libyaa Malaysia MaIta cia Netherlands Norway Portugal Puerto Rico Sierre Leonec Spanish Africa EXPORTS OF FLUE-CURED TOBACCO - AVERAGE UNIT VALUES BY MARKETS (i) Pounds (re-dried weight) of tobacco exmported. (ii) Average value per 100 pounds. ACCORDING TO COUNTRYFORTHE CALENDARYEARS 1964, 1965 AND lbs. Average Y$ , ,29 0.1,213 / , , ,0012" û1, ,U 3,200, , ,3 0 23% '6 2555,r'9 " , '?3 16;, G6,C,2 6.4., 205 ' , 040C 5 64e, , g,2 y., ,424 ID *1] lbs. 52.,00 131, ,X11c 22, ,52 14, 1 531, 612s 202, ,314-43,4k8/. 216,,;14 5,4,0 36, 5 41% ,821 21,.3 1,550 14%, 8WÏ , `./, -~ oo ' *64' 1966 lbs. 180,636 90, ,480 54!,3;3 116,103 35,100 '11,669 15,892 'xo6lu,233 64, a6 '12,665 2,02 263,940 3(', , ,/..08 1,10O 35,0C 66G,633 5e600 Average V.)> :51 46e X G j.42 58:
12 COM.AG/W/32/Add. Page 12 Switzerland J.'; Trinidad United Kingdom LI ;,2.i UnitedStates_. U. S. USSR ~~~. EXPORTS OFLUE-CUREEDTOBACCO - AVERAGE UNIT VALUES BY MARKETS'. (c``:.!v» j f - j!-.-'-',-'-* alcx'..'. O ;5*x ',;..,GI D.., ; 023 D.'V G-, )25 2/'J.v- 125, 51 --, r -? 06!-C: cc 0. 1, -6 j , üc , i r rw 1 1> 96r v _ a `Jj.- 36,4 -" 9 r.r c.>.:>', 5i4 -.. `/*l /. 4,1 c.-nelt _.`...-.,.. /~6,4( =1 =0 =C~5,2 = = ~,~1~ 12/ Average value in US$'000 (22,08) (6.54) (j:-. 62,/,.).. (cg.92) (Me--162) (94. 9) 1,1CI, -) Or-'t aid measures andpolicies Canada hasno export aid measures,nor export stook management policy, and transactions are on a strictly commercialbasis 1 By virtueof bilateral trade agreements, New Zealand and South Africa onjoy duty free entry into Canada for unmanufactured tobacco(see table undertl'able under Canadian tobacco receivestariff preferences in a number of Commonwealth countries but such preferences are not embodied in bilateral trade agreements.
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