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Trade issues
Trade issues are very important for western Canadian farmers, with serious implications for their farm business operations.
In the 2003-04 crop year, 86 per cent of the wheat, durum and malting barley sold by western Canadian farmers through the CWB was exported to markets in other countries. The international trade environment therefore has a direct impact on the ability of the CWB to maximize returns to farmers from the sale of their grain.
The growing success of Canadian wheat competition has created intense trade pressure from the United States:
- Ongoing American trade harassment has led to a prohibitive U.S. tariff on Canadian spring wheat in 2003. A CWB appeal has now resulted in the tariff being lifted, as of Feb. 24, 2006.
- The U.S. has pushed for changes at the World Trade Organization (WTO) that will significantly affect western Canadian farmers.
- The U.S. is aggressively pursuing bilateral free trade deals that could affect western Canadian farmers' access to important world markets.
Farmers need clear rules for international trade, rules that minimize trade distortions and avoid giving some countries an unfair advantage. As major exporters, the farmers of Western Canada also need improvements in access to international markets for their grain. The CWB has a clear trade position and a comprehensive trade strategy which includes providing direction and support to Canada's negotiating team at the WTO.
Recent rulings by independent bodies have affirmed the CWB's status as a fair trader:
- A June 2005 NAFTA panel ruling that the U.S. tariff on Canadian wheat is unjustified.
- On April 2004 WTO dispute settlement panel ruling that dismissed American allegations, upholding the strictly commercial nature of the CWB.
Negotiations at the World Trade Organization (WTO)
- The WTO and You - highlights for farmers
(PDF format 612 KB) - About the CWB: a brief for WTO members
(PDF format 133 KB) - Comparative wheat support
(PDF format 29 KB) - Canada's wheat competitors
(PDF format 95 KB) - About the CWB: a brief for WTO members
(PDF format 133 KB)
The American tariff on our wheat
- A history of U.S. trade challenges
- CWB takes U.S. to court: the Byrd case
- Canadian wheat exports to the U.S.
(PDF format 43 KB)