Newsroom
2005
NAFTA victory complete: wheat tariff to come off
December 12, 2005
Winnipeg - Canadian spring wheat will be able to move freely into the United States once more, after a NAFTA panel today issued its final decision on an appeal launched two years ago by the CWB.
The last hurdle has now been crossed to the removal of a U.S. tariff that has virtually closed the border to Canada's largest crop since 2003. In issuing its decision, the NAFTA panel dismissed a challenge by the North Dakota Wheat Commission, the group that began the trade dispute.
"This is a very significant victory that finally corrects a trade injustice for Prairie wheat farmers," said Ward Weisensel, CWB Chief Operating Officer. "There was never any legitimate basis for the tariff, as this decision has affirmed.
"We are pleased to be able to once again freely market Prairie farmers' high-quality wheat to our valuable American customers."
Canadian hard red spring wheat can enter the United States without duty liability as soon as the NAFTA Secretariat issues the notice of final panel action, a process that should be completed within the next few weeks.
In October 2005, prompted by a NAFTA panel directive, the U.S. International Trade Commission re-examined and subsequently reversed its 2003 decision. It ruled that Canadian wheat imports do not injure U.S. producers and do not drive down American wheat prices.
The tariff had been set at 14.2 per cent, but was ordered lowered to 11.2 per cent after a NAFTA ruling was issued in June 2005 on a separate CWB appeal.
In the crop year before the tariff was imposed, the CWB sold about one million tonnes of hard red spring wheat into the U.S., worth about $250 million.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells to over 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Maureen Fitzhenry
Media Relations Manager
Tel: (204) 983-3101
Cell: (204) 479-2451