News Releases for February 2002
February 15, 2002
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Hoeven Disappointed With U.S. Trade Representative's Actions Against Canadian Wheat Board
BISMARCK, N.D. - Governor John Hoeven today said he is disappointed at U.S Trade Representative (USTR) Robert Zoellick’s decision not to impose an immediate tariff rate-quota (TRQ) action against the Canadian Wheat Board (CWB) for monopolistic practices under Section 301 of the U.S. Trade Act of 1974. TRQ would impose a tariff on Canadian imports over a certain volume limit.
Hoeven has spoken with both Zoellick and Agriculture Trade Ambassador Allen Johnson several times over the last month in support of a formal petition against the CWB for anti-competitive trade practices filed with the U.S. Trade Representative’s office by the North Dakota Wheat Commission (NDWC). The Governor urged Zoellick to take TRQ action against the CWB for monopolistic practices. Today’s move by the USTR comes after evaluation of a U.S. International Trade Commission study on the impact of the CWB trade practices on the world wheat market.
“I’m pleased that the study’s findings confirm what we in North Dakota have known for a long time - the CWB is a government-sanctioned monopoly that lacks transparency and gives the Canadians an unfair competitive advantage over North Dakota farmers. However, we’re disappointed that a stronger, more immediate remedy isn’t being pursued,” Hoeven said.
The USTR said Friday it will examine taking a possible dispute settlement case against the CWB in the World Trade Organization (WTO); work with the North Dakota Wheat Commission and U.S. wheat industry to examine the possibility of filing U.S. duty and antidumping petitions; identify specific impediments to U.S. wheat entering Canada and present the findings to Canada to ensure the possibility of fair two-way trade; and pursue reform of monopoly trading enterprises in WTO agricultural trade negotiations.
“The actions proposed by the USTR are a step in the right direction, but they don’t provide the kind of timely relief farmers need against excessive Canadian wheat imports,” according to Hoeven. “In the meantime, a tariff-rate quota would help to give our farmers the relief they need now.”
Hoeven said he would work with the NDWC and continue to press for a tariff-rate quota. “A TRQ would show immediate resolve and the quickest results,” Hoeven said. “We can’t afford to see slow-moving international negotiations erode the vitality of the North Dakota farm economy.”
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