Newsroom
2003
CWB files NAFTA appeal against unfair trade decisions
November 24, 2003
Winnipeg – The Canadian Wheat Board (CWB) today filed its appeal to a NAFTA panel of the International Trade Commission (ITC) ruling that found exports of Canadian hard red spring wheat cause injury to U.S. farmers.
After considering the evidence, the NAFTA panel has three options available: sending the injury ruling back to the ITC for review, overthrowing or upholding the decision. The panel is given between 13 and 16 months to make a decision. This appeal is part of the CWB's three-pronged approach to eliminate or reduce the 14.15 per cent tariff now levied on hard red spring wheat imports to the United States.
The CWB has teamed up with the Government of Canada and provincial governments of Alberta and Saskatchewan in a NAFTA appeal of the U.S. Department of Commerce (DOC) finding that sales of Canadian hard red spring wheat into the U.S. were unfairly subsidized during the investigation period.
The CWB is also working with the federal government to consider the merits of appealing to the WTO on the injury ruling from the ITC and anti-dumping and countervailing duty rulings from the DOC.
"We are pleased that durum trade is resuming with U.S. customers following the ITC ruling that removed the tariffs on Canadian durum imports. However, we strongly believe that western Canadian farmers should also have the right to sell their wheat to the U.S. customers who have publicly testified that they are willing to pay a higher price to access our high-quality Canadian wheat," said Ken Ritter, chair of the CWB's farmer-controlled board of directors.
Ritter also highlighted the grossly inflated subsidies the U.S. government doles out to its farmers, while Canadian farmers remain relatively exposed to market forces.
"Any allegations by the U.S. that imports of Canadian wheat were unfairly subsidized are ludicrous," said Mr. Ritter. "The U.S. government subsidizes its wheat farmers at a much higher rate – double what we received in Canada."
Figures from the Organization for Economic Co-operation and Development (OECD) show that in 2002, U.S. wheat farmers received $93 per tonne in subsidies compared to $48 given to Canadian wheat farmers. In addition, over the last five years, American taxpayers have provided nearly $3.7 billion in support to wheat farmers through marketing loans and Loan Deficiency Payment Programs. The European Union has provided $16.68 billion in wheat price support over the same period through its intervention programs.
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 grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Rhéal Cenerini
Communications Consultant
Winnipeg, MB
tel: (204) 983-4497