News Releases for October 2003
October 3, 2003
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Hoeven Commends ITC Ruling On Hard Red Spring Wheat
ITC Should Have Also Supported Tariff On Durum
BISMARCK, N.D. - Governor John Hoeven today praised a U.S. International Trade Commission (ITC) final ruling that says U.S. hard red spring wheat producers have been injured by the unfair trading practices of the Canadian Wheat Board (CWB). The Governor said he was disappointed in the commission’s finding that durum wheat dumping has not caused significant injury to U.S. producers. The official explanation for the decision will be issued in mid-October.
Hoeven commended the North Dakota Wheat Commission for working hard on the issue of fair trade, and pledged his continued support. Hoeven has been pushing U.S. Trade Representative Robert Zoellick and U.S. Agriculture Trade Ambassador Allen Johnson to take action against the Canadian Wheat Board in the World Trade Organization.
“This is a mixed win,” Hoeven said. “North Dakota raises more than 200 million bushels of hard red spring wheat each year, and this will help level the playing field for those growers, who have been negatively impacted by Canadian imports. Disappointingly, the ITC didn’t recognize that our durum growers have also been hurt by the CWB. The key here is whether or not the ruling brings sufficient pressure to bring reform to the Canadian wheat monopoly.”
The action marks the culmination of an effort by the North Dakota Wheat Commission, Hoeven and administration officials to recover market share, bolster prices and restore competition in wheat production.
The ITC decision makes permanent earlier preliminary rulings by the Commerce Department establishing countervailing and antidumping duties on imported Canadian wheat to offset CWB subsidies. On Aug. 29, 2003, the agency raised the combined duty on hard red spring wheat to 14.15 percent.
“Until the CWB adopts a policy of transparent pricing and competitive trade, we will push to ensure that measures remain in place to enable our farmers to compete in a fair wheat marketplace,” Hoeven said. “We would prefer a truly free market for farmers on both sides of the border, but for now it appears the only way to level the playing field is with a finding of injury by the ITC and corrective duties.”
In addition to today’s action, U.S. Trade Representative Zoellick has requested a World Trade Organization dispute settlement panel to investigate monopolistic Canadian wheat trading practices.
“Today’s decision establishes in fact that the Canadian Wheat Board trades unfairly here in the U.S. and around the world,” Hoeven said. “We will continue to work with U.S. Trade Representative Zoellick to bring discipline to the world wheat markets in the WTO.”
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