Newsroom
2000
February 24, 2000
CWB asks Canadian government to monitor U.S. aid program
Winnipeg -- The CWB today asked the Canadian government to remain
vigilant about U.S. aid programs and to pursue all legal recourse
under international trade agreements if the U.S. tries to grab a
larger share of commercial markets under the guise of supplying
food aid. The CWB was responding to a recently announced U.S. plan
to donate an additional three million tonnes of agricultural
commodities as food aid.
"We will be closely monitoring this program," said Adrian Measner,
Executive Vice-President, Marketing. "Should it become apparent
that this is not bonafide food aid, but rather an attempt to expand
American market share, we will press the federal government to
protest to the United States and appeal to the Surplus Disposal
Committee of the Food and Agriculture Organization."
Measner said donations to countries like Indonesia would be
considered a displacement of commercial wheat and would result in
the CWB appealing to the Canadian government to protest and
challenge the U.S. government on all possible fronts.
"Food donations are entirely acceptable when the recipients are
indeed countries that cannot feed themselves and do not have the
funds to purchase food for their people. However, we're aware of
the U.S. practice of trying to secure new export markets by
donating food aid to markets otherwise tendering on a commercial
basis. This harms commercial business at the expense of other
exporting countries," Measner said.
Canada is the second largest wheat exporter, after the U.S. At
current market value, three million tonnes of wheat could be worth
between CDN$500-$600 million.
Measner emphasized that food aid must be administered carefully and
strictly to avoid damage to commercial markets, which harms
Canadian farmers. He urged the U.S. government to adhere to its own
stated policy that food aid will not disrupt commercial
business.
The CWB is the world's largest wheat and barley marketer.
Headquartered in Winnipeg, Manitoba, it is one of Canada's biggest
exporters and the largest net earner of foreign currency. Marketing
Prairie-grown wheat and barley to over 70 countries around the
world, the CWB returns all sales revenue, less the costs of
marketing, to farmers in Western Canada.