News Releases for November 2002
November 8, 2002
Contact: Lance Gaebe, Agriculture Advisor
(701) 328-2200
Hoeven Urges U.S. Trade Ambassador To Settle Wheat Trade Case
BISMARCK, N.D. - Governor John Hoeven called U.S. Trade Ambassador Allen Johnson to urge the United States to move forward in initiating a dispute settlement process against Canadian wheat trading practices. Hoeven told the Ambassador that the U.S. needs to take action in the World Trade Organization (WTO) to put an end to Canada’s monopolistic trade practices in the international wheat market. Johnson is the chief agriculture negotiator for U.S. Trade Representative (USTR) Robert Zoellick.
In February 2002, the USTR issued an affirmative finding in response to the complaint filed by the North Dakota Wheat Commission on behalf of the state’s wheat farmers. The finding reads in part:
... the Canadian Wheat Board has taken sales from U.S. farmers, and is able to do so because it is insulated from commercial risks, benefits from subsidies, has a protected domestic market and special privileges, and has a competitive advantages due to its monopoly control over a guaranteed supply of wheat.
At that time the USTR suggested a three-pronged response, including U.S. countervailing duties, antidumping action, and a dispute settlement case against the Canadian Wheat Board (CWB) filed in the World Trade Organization.
“The Bush Administration has already identified this trade complaint as a priority, which is evidenced by the U.S. Commerce Department’s recent decision to proceed on its wheat dumping investigation,” Hoeven said. “I called the USTR to urge that his office take an additional step to resolve the dispute: specifically, to file a formal complaint under the WTO against the Canadian Wheat Board for engaging in unfair wheat trading practices.”
In earlier conversations, Johnson told Hoeven that the USTR is opposed to state trading monopolies and that he believes the CWB violates free trade agreements with its market control. The Ambassador told Hoeven he is committed to limiting the power of such monopolies by negotiating meaningful reform through WTO provisions.
“This is a matter of critical importance to North Dakota farmers,” Hoeven said. “I told Ambassador Johnson that we believe the quickest and most effective way to stop Canadian manipulation of the world wheat market is to initiate a formal complaint through the WTO. Following my conversation with him, I believe the USTR will take decisive action soon.”
In September of 2000, the North Dakota Wheat Commission filed a petition under section 301 of the Trade Act of 1974 asking the USTR to investigate and take action against the Canadian Wheat Board.
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