Issue 33
January 2001

Copyright
Prairie Grains Magazine
January 2001

Minnesota Wheat Research & Promotion Council Annual Report 1999-2000

Export Promotion, Market Development Highlights

Breakthrough with the World’s Largest Wheat Consumer
U.S. Wheat Associates (USW), supported in part by the Minnesota wheat checkoff, does behind-the-scenes market development work in 130 countries to boost the overseas consumption and encourage the sale of American wheat.  This includes trade servicing and technical assistance, market analysis, and consumer promotion.

A key focus in 2000 was China, both the world’s largest producer and consumer of wheat. Breakthroughs were made on several fronts. The shipment, which included hard red spring wheat, was the first from the PNW after resolution of a 25-year phytosanitary trade dispute between the U.S. and China, resolved in part because of persistent efforts by USW.

USW also worked aggressively and successfully to secure permanent normal trade relations (PNTR) status to China. U.S. wheat leaders were present at the White House when President Clinton signed the PNTR bill into law.

These steps pave the way to a possible 10% increase in total wheat exports every year, and meaningful access to one fifth of the world’s consumers.

Setting Groundwork in the WTO
USW leaders began 2000 in Seattle, meeting with key negotiators in the opening ministerial of the World Trade Organization. USW has long been preparing for the renewed WTO negotiations. Last July, USW hired a law firm that includes former U.S. Trade Representative Mickey Kantor to help the U.S. wheat industry deliver on its WTO objectives.

The WTO negotiations, expected to get underway in 2001 and last about three years, are extremely important to agriculture and wheat specifically. More than half of the wheat produced in the U.S. goes into the export market. Between 1990 and 1998, U.S. wheat exports averaged 1.1 billion bushels annually. The facilitation of wheat exports through greater market access coupled with freer trade are crucial elements to successful WTO negotiations for the U.S. wheat industry.

Hamnes 2000-2001 USW Chair
“Maintaining and increasing the export market for U.S. wheat is absolutely essential, since we need to export almost half of the wheat grown in the U.S. every year,” said Stephen, MN producer Bruce Hamnes, when he was installed as 2000-01 Chair of USW. “We have a global market share of around 28%, making us the world’s largest wheat exporter, but we face increasingly stiff competition from Canada, Australia, the European Union and Argentina. Our Board of Directors, together with staff working in every major overseas wheat market, are privileged to have the support of America’s wheat growers as we meet those challenges head on.”

USW Online
USW positions on five trade issues important to U.S. wheat—economic barriers, export subsidies, state trading export monopolies, unilateral sanctions, and biotechnology—are explained in USW’s website: www. uswheat.org. There you’ll also find U.S. Wheat Export News, USW newsletters, USW’s annual crop quality report and other U.S. wheat export information.