Newsroom
2000
October 23, 2000
American trade investigation based on politics, not facts
Winnipeg - The Canadian Wheat Board (CWB) is disappointed, but not
surprised, by today's announcement that the United States is
continuing its trade challenge into Canadian farmers' trading
practices. Earlier today the office of the United States Trade
Representative (USTR) announced its decision to investigate the
trading practices of Canadian farmers based on a Section 301
petition filed by the North Dakota Wheat Commission.
"Unfortunately, politics have overshadowed the weakness of this
inaccurate and unsubstantiated petition," said CWB President and
CEO Greg Arason. "We're confident that after the Presidential
election the petition will be looked at on its merits and be
dismissed."
Among other things, the petition portrays alleged Canadian
subsidies as the principal cause of government-induced distortion
in world wheat trade. However, according to 1999 OECD Producer
Support Estimates, government support measures accounted for 46 per
cent of wheat farm income in the U.S. and only 11 per cent in
Canada.
"The NDWC charges do not reflect the realities of the global grain
market," said Arason. "It appears they need someone to blame for
low world prices and the easy thing is to blame Canadians."
The North Dakota Wheat Commission filed its controversial Section
301 petition with the United States Trade Representative on
September 8, 2000. The USTR (an arm of the President's office) now
has one year to investigate the case and determine what action it
will take. The Americans attempted to use the Section 301 petition
during the softwood lumber dispute but were overruled by a GATT
panel. The European Union has also challenged the legality of the
Section 301 legislation casting further doubt on its merit.
"We will not be bullied by their strong-arm tactics," said Arason.
"We know that as long as Canadians do a good job of selling any
commodity that is in competition with American products, they will
try to set up roadblocks."
The CWB is the world's largest farmer-controlled 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.