Newsroom
2002
November 19, 2002
CWB denounces negative ruling on U.S. trade challenge
Regina - A ruling this morning by the U.S. International Trade Commission (ITC) has been denounced by the CWB as unfounded and just another step in continued American trade harassment. The ITC has made preliminary determinations that will allow them to continue investigating allegations contained in anti-dumping and countervailing duty petitions filed by the North Dakota Wheat Commission (NDWC).
Larry Hill, chairman of the CWB directors' trade committee, said the ITC ruling signals that interim tariffs could be imposed on imports of Canadian wheat and durum next March, after the U.S. Department of Commerce makes its own preliminary determinations. Both bodies are investigating aspects of the trade challenge, which is the tenth launched by American interests against Canadian wheat since 1990.
"This is quite simply an attack on western Canadian farmers and anything that gives them a competitive advantage," said Hill, who is a farmer-elected director of the CWB. "The facts of this case do not support a ruling against us, we do not 'dump' grain, nor do we have unfair subsidies. This has been shown time and time again.
"This ITC ruling is not a surprise because, statistically, few defendants are successful at this stage before the ITC. But that doesn't make it any less aggravating."
Hill said that the trend in Canadian-U.S. trade relations has a distinct theme: Canadian imports that succeed in the American market will be challenged.
"It is the success of Prairie farmers through their grain marketing system, their grain transportation system and their varietal registration system that has attracted this challenge -- just as the success of Canada's softwood lumber industry attracted American tariffs," he said. "It's hard to see any logic to it other than protectionist trade harassment."
Defending the right to access the premium U.S. market is expected to cost Prairie farmers up to $10 million. The extra costs come at a difficult time for farmers, who are reeling from the disastrous effects of the drought. The CWB will this year market the smallest crop in at least 30 years, equivalent to half a normal crop.
The NDWC is demanding duties on Canadian wheat and durum of 26.7 per cent and 34.5 per cent, respectively. In a typical year, about 1.5 million tonnes of Canadian spring wheat and durum are sold to U.S. customers (about eight per cent of total sales), representing about $400 million Cdn or 10 per cent of CWB sales revenue.
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 the costs of marketing, to Prairie farmers.
For more information contact:
- Larry Hill, CWB trade committee chair, cell 306-741-2374.
- Louise Waldman, CWB media liaison, cell 204-299-8398.
- Maureen Fitzhenry, CWB communications consultant, 204-984-7747.