Winter 1994

Import Issue Now in Hands of Binational Commission


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Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain
Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.


Ten representatives were named this past October to the U.S.-Canada Joint Commission on Grains, created in a "Memorandum of Understanding" between the United States and Canada to help resolve the two countries' longstanding grain dispute.

U.S. COMMISSIONERS ARE:


* Alan Bergman, a Jud, N.D., wheat producer and president of the N.D. Farmers Union.


* James Miller, a Garfield, Wash., wheat and barley grower and past president of the National Association of Wheat Growers.


* Herbert Karst, a Sunburst, Mont., barley grower and a National Barley Growers Association board member.


* Allen Anderson, senior vice president, Harvest States Cooperatives, St. Paul, Minn.


* Anthony Flagg, president, Pendleton Flour Mills, Pendleton, Ore.

CANADIAN COMMISSIONERS ARE:


* Jonathan Bamberger, president of Canadian malting operations, Canada Malting Company, and was a member of the Canadian Wheat Board Review Panel and Barley Round Table.


* J. Milton Fair, former CEO of the Saskatchewan Wheat Pool (SWP).


* Clay Gilson, professor emeritus, University of Manitoba, and a specialist on Canada/U.S. ag policy programs.


* Douglas Livingstone, a grain producer from eastern Alberta and former president of the Alberta Wheat Pool.


* William M. Miner, senior research associate and trade policy consultant with the Centre for Trade Policy and Law.

The binational commission will examine all aspects of the two countries' respective marketing and support systems for grains and the impact these have on Canadian and U.S. markets, as well as third-country markets.

A key objective of the Commission is to assist the U.S. and Canadian governments in reaching long-term solutions to existing problems in the grains sector.

The Commission is scheduled to submit initial findings and non-binding recommendations to both countries by June 1995, and is scheduled to conclude its work by Sept. 1995.

ROADMAP TO REFORM

Judy Olson, president of the National Association of Wheat Growers, says she hopes the commission "provides a roadmap for real reform to North American and global grain trade problems," which she says includes the monopolistic Canadian Wheat Board (CWB) and Canada's use of eastbound rail subsidies to discount grain sales into the United States.

While the binational panel works out a more permanent solution, Canadian wheat imports into the United States will be capped for a 12-month period, which began Sept. 12, 1994.

Imports of Canadian wheat (other than durum) over 1.05 million metric tons (38.6 million bushels) will be slapped with a $50 per ton ($1.36/bu.) tariff. When durum imports reach 300,000 metric tons a tariff of $23 per ton, or about 65 cents per bushel, will be applied. The tariff would climb to $50 per ton, or $1.36 per bushel, if Canadian durum imports exceed 450,000 metric tons.

Wheat flour, semolina, and soft wheat from Ontario were exempted from the interim agreement, concluded by the United States and Canada on Aug. 1, 1994, and signed into force on Sept. 26.

The Ontario exemption was provided because the wheat marketed from the province is not controlled by the CWB, and it does not have the benefit of the Canadian rail subsidy scheme.

Copyright Prairie
Grains Magazine
Winter 1994