News Releases for August 2003
August 7, 2003
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Hoeven, Plains Governors Push For Continued Action Against Canadian Wheat Board
Official Letter: Donald L. Evans 
(130 kb pdf)
BISMARCK, N.D. - Gov. John Hoeven today, along with the governors of three other wheat-producing states, sent a letter to U.S. Secretary of Commerce Donald L. Evans pressing him to pursue aggressively his investigation into charges of dumping and unfair government subsidation of the Canadian Wheat Board (CWB). Other signatories of the letter are Gov. Judy Martz of Montana, Gov. Mike Johanns of Nebraska and Gov. Mike Rounds of South Dakota.
“Aggressive and strong action will be needed to resolve this matter,” the Governors wrote. “You have the opportunity to further the work that Ambassador Zoellick undertook in his Section 301 investigation and to send a strong message to Canada that it is time for them to come to the negotiating table and offer true and meaningful reform of the Canadian Wheat Board, or finally abide by applicable U.S. trade laws.”
Last March the White House informed Hoeven that the Commerce Department would impose a preliminary tariff of 3.9 percent on Canadian wheat to counter government subsidies to the CWB. In May, the department issued a preliminary determination that the CWB is dumping wheat into the U.S. market at prices below market value. The agency imposed anti-dumping bonding requirements of 6.12 percent on Canadian hard red spring wheat and 8.15 percent for durum in addition to the 3.94 percent tariff. The governors are urging the department to confirm the finding and impose a permanent duty on Canadian wheat.
The cumulative percentage for hard red spring wheat would be about 10 percent, and for durum about 12 percent. The duty would represent about 35 cents a bushel for hard red spring wheat and about 40 cents a bushel on durum. The DOC will issue its final determination on Aug. 29, 2003.
In September of 2000, the North Dakota Wheat Commission filed a petition under section 301 of the Trade Act of 1974, asking the U.S. Trade Representative to investigate and take action against the wheat trading practices of the Canadian trade system. North Dakota wheat farmers have funded the action through a check-off on their state tax return.
Copies of the letter were also sent to U.S. Secretary of Agriculture Ann Veneman, U.S. Trade Representative Robert Zoellick, President Bush’s Chief of Staff Andrew Card and Chairman of the U.S. International Trade Commission Deanna Tanner Okun.
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