OTTAWA -- Canada called for a dramatic overhaul of international trade rules for agriculture as the World Trade Organization (WTO) prepares for the next substantive round of farm trade talks.

Agriculture Minister Lyle Vanclief reiterated Canada's oft-stated stance, saying: "Achieving significant agricultural trade reform in the WTO is critical for our sector.

"Canada's primary goal in the negotiations is to ensure that our producers and processors are able to compete effectively with their foreign competitors on a level international playing field," he added.

The statement is in reference to the traditional Canadian position that medium-sized economies such as Canada, Australia and New Zealand have suffered because of continuing subsidy wars between the United States and the European Union.

But, at a background briefing for journalists here Thursday, officials with the Department of Agriculture suggested the United States was moving closer to Canada's position while problems over subsidies continued with the European Union.

Parallel problems over market access also continued with protectionist policies of the European Union, Japan and South Korea, AFP quoted the officials as saying.

The WTO is scheduled to produce a position paper on December 18, outlining the major divergences on opening up farm trade.

And by March 31, 2003 the agriculture negotiators are scheduled to finalize their position for an overall package in the free trade talks covering farm produce.