Wheat World

U.S. Wheat Industry Proposes Further Biotech Recommendations
At the Wheat Industry Conference in New Orleans, the NAWG, USW, and WETEC joint committee on biotechnology proposed the establishment of an advisory committee to work with Monsanto’s development of a closed-loop system to prevent co-mingling of genetically modified wheat with conventional wheat. The advisory committee would involve other sectors of the wheat industry, including farmers, grain handlers, millers, bakers, and exporters.

Also endorsed were voluntary food labels indicating the presence or absence of biotechnology-derived traits, supporting the consumer’s right to know and the food industry’s right to inform. Establishment of a reasonable tolerance for accidental co-mingling of genetically-modified and non-GMO grain was also adopted.

U.S. Sanctions Policy Still Needs Work
As USW works to develop markets in countries that have been laboring under economic sanctions imposed by the U.S. government, it is becoming increasing clear that more changes in U.S. sanctions policy need to be implemented. Legislation to lift the extraordinary restrictions on trade with Cuba will be considered this session, Hill observers say, but attention also needs to be given to the newly imposed statutory restrictions that hamper market development activities for buyers in Libya, Sudan, and Iran.

“Just because we lift sanctions on food and medicine, it doesn’t mean that those countries will automatically buy from the U.S.,” explains Paul Dickerson, USW vice president for overseas operations. “We need to show them how the U.S. marketing system works, and how they can get the best U.S. wheat to meet their needs. It takes a lot of work.”

One of the obstacles blocking full market development work is the legislative provision (effective shortly) that no U.S. government assistance, including U.S. foreign assistance, U.S. export assistance, or any U.S. credit or guarantees shall be available for exports to Cuba or commercial exports to Iran, Libya, North Korea, or Sudan. Since USW, and most other export market development organizations, receive funds from the federal government, market development activities to bring those markets back to the U.S. are severely hampered, at least until a presidential waiver is (hopefully) granted.

USW Voices Support for Trade Measures
At its annual meeting held recently in New Orleans, leaders of USW discussed a number of wheat export issues, including establishment of the Free Trade of the Americas Agreement (FTAA), which USW voted to support “actively and aggressively.” However, the U.S. position is tempered by changes to monopolistic practices of state trading enterprises such as the Canadian Wheat Board.  USW supports a thorough investigation by the U.S. Trade Representative of Canadian government policies and Canadian Wheat Board trade practices that affect wheat sales worldwide. President Bush has said that the establishment of the FTAA, a free trade zone from Canada to South America by 2005, would be one of his administration’s priorities, along with larger trade objectives in the World Trade Organization (WTO).

USW Urges Action On Brazilian Trade Barriers
USW has been urging the U.S. Government to help resolve what it calls “arbitrary and capricious trade barriers” instituted by Brazil against U.S. wheat. Brazilian government officials cite an unsubstantiated phytosanitary concern with wheat nematodes, a condition not seen in U.S. wheat for decades, as a reason not to import U.S. wheat. “Brazil has an increasingly long history of arbitrarily raising these barriers,” says USW president Alan Tracy, “even after we have worked with them and provided them ample scientific criteria to address any real issues.” USW is working with U.S. and Brazilian trade officials to resolve the issue.

WTO Director Outlines Next Trade Talk Steps
World Trade Organization Director General Michael Moore recently met with U.S. ag officials (including WETEC) to discuss the state of the WTO and the current agriculture negotiations. Moore cast an optimistic tone over the possibility of launching a new round of negotiations, but said that only those sectors “ripe” for negotiation should be included in the new round. He said that by July the WTO should know if a launch during the ministerial in Qatar, November 11-13, is possible and what sectors it would include. While optimistic about progress on a new round, Moore highlighted the reality that without agreement between the U.S. and the European Union, little progress will be achieved.

U.S. Wheat Flour Not Targeted by Middle East Boycotts
Fighting in Palestine and Israel has resulted in a ‘boycott’ of some U.S. products in Egypt and elsewhere in the Middle East. USW regional vice president Dick Prior reports that flyers calling for boycotts are appearing in fast food chains and supermarkets, and some U.S. made products have reportedly seen sales drop considerably. For several years USW has conducted a major “recognition” campaign promoting U.S wheat products through an identifiable logo, and USW needed to find out if there were negative repercussions generated by the boycott. Thus, USW/Cairo hired a research firm to conduct focus group tests. Initial reports indicate that respondents recognized the U.S. wheat logo, that flour with the logo was the consumer’s first choice with a very high degree of trust, and that U.S. wheat products were not among the boycotted products.

USW Battling for Venezuelan Market
USW consultants have been working extensively with ESLAMO, the milling school in Venezuela. They set up a Technical and Administrative Advisory Committee, installed new laboratory equipment, provided training to ESLAMO staff on the function, operation and maintenance of the equipment, and devised a commercial “for fee” lab scheme to provide value added service to the Venezuelan milling industry and concurrently provide additional income to ESLAMO. The U.S. is in a real battle with Canada over this market, and so far U.S. imports are outpacing last year’s sales.

USW Introduces Quality Sample Program
To introduce different wheats to nontraditional markets, USW has started a new quality sample program this year, funded by USDA. Rick Callies, USW vice
president who runs the program, reports that containers are being sent to Venezuela, China, Morocco, Burma and Guatemala. USW consultants will provide guidance and assistance as customers test the wheats for new uses in those markets.

WHEAT WORLD is brought to you by the checkoff funded Minnesota Wheat Research and Promotion Council.

The majority of the activities cited here are carried out by U.S. Wheat Associates, your checkoff funded international market development affiliate, with offices located in 15 counties around the world.