News Releases for March 2003
March 5, 2003
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Hoeven: U.S. Trade Representative To File WTO Case Against Canadian Wheat Board
BISMARCK, N.D. - U.S. Trade Ambassador Allen Johnson informed Gov. John Hoeven today that the United States will pursue a dispute settlement case in the World Trade Organization (WTO) against the Canadian Wheat Board (CWB) for unfair trading practices. U.S. Trade Representative (USTR) Robert Zoellick will ask the WTO on Thursday to form a panel to examine the wheat trading practices of the Canadian government and the CWB.
According to Johnson, the request challenges Canada’s requirements to segregate imported wheat, and its discriminatory policies that affect access of U.S. grain to the Canadian railway system. The formation of the panel represents the next step in the United States case against Canada announced in December.
“On Tuesday, the U.S. Commerce Department imposed a 3.9 percent tariff on the Canadian Wheat Board, and today, the USTR is moving forward with the dispute settlement case in the WTO, as we requested,” Hoeven said. “We’re pleased to see the U.S. Trade Office take these measures in a matter that is so vital to our farmers.”
In earlier talks with the U.S. Trade office held in January, Canada expressed no willingness to change its trading policies, Johnson told Hoeven. That confirmed prompted Zoellick to proceed with the next step in the process, which is formation of a panel of independent experts to determine whether the Canada is complying with the rules of international trade.
Johnson told Hoeven the USTR would pursue the matter on four fronts: first, by advancing a WTO challenge; second, by working with the U.S. industry to determine the possibility of filing antidumping and countervailing duty petitions; third, by working with the industry to identify obstacles to U.S. wheat entering Canada; and fourth, by seeking to reform national trading enterprises like the CWB through new WTO rules. The USTR will also continue to build coalitions with other nations that agree with the U.S. position.
“Tomorrow’s action is another step in the right direction, but we can’t lose our momentum,” Hoeven said. “We will continue to work with the USTR to challenge state-run monopolies like the CWB, and to push for fair trade for our farmers.”
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