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CWB takes U.S. to court: the Byrd case
The CWB has launched a court action against the U.S. to prevent illegal distribution of wheat duties under a controversial piece of U.S. trade law.
"We're trying to stop this unjustifiable U.S. trade practice," said Ken Ritter, chair of the CWB board of directors. "Farmers have to stand up to the Americans. The U.S. cannot continue to thumb its nose at international trade law."
In late April 2005, the CWB filed a complaint with the U.S. Court of International Trade, requesting an injunction against any wheat duties being paid to the North Dakota Wheat Commission. The NDWC is the group responsible for trade action that led, in 2003, to a 14.2-per-cent tariff on imports of Canadian hard red spring wheat. The tariff remains in place today.
Under the so-called Byrd Amendment in the U.S., import tariffs and duties that result from dumping and countervailable subsidies may be paid to the relevant American industry – in other words, the party who files the original trade action.
CWB general counsel Jim McLandress said that, if the NDWC is eligible for any of this money, it would be akin to allowing the North Dakota group to finance further trade harassment.
"We'll do everything we can to keep that money out of their hands," he said, adding a ruling is expected by early fall.
Groups representing Canadian exporters of softwood lumber and magnesium also filed similar court actions.
The World Trade Organization declared the Byrd Amendment illegal in 2002, but the U.S. has so far failed to comply. However, the basis for the CWB action is NAFTA, which should prevent Byrd Amendment provisions being applied to goods from Canada or Mexico.
Ritter said American interests have subjected Canadian wheat producers to an endless string of trade challenges since free trade was first introduced between Canada and the U.S. in 1989.
"This simply has to stop," he said.