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    US imposes Tariff on Canadian Wheat

    Winnipeg - The Canadian Wheat Board (CWB) denounces a preliminary ruling by the U.S. Department of Commerce (DOC) which has imposed unfair tariffs on western Canadian wheat farmers because of subsidy allegations.

    "It is surprising that the Americans -- with their own massive levels of farm support -- have said that Canadian wheat is unfairly subsidized," said CWB Chair and farmer-elected director Ken Ritter from Kindersley, SK. "Our wheat exports are not unfairly subsidized under any rule of international trade. This is harassment provoked by the success of western Canadian farmers in the U.S. marketplace."

    According to the latest figures from the OECD, government support for wheat production in the U.S. is $108 per tonne, compared to $31 per tonne in Canada.

    Tariffs on Canadian imports to the U.S. of 3.94 per cent on wheat and durum were announced today. The CWB sells an average of 1.5 million tonnes of wheat and durum, worth $360 million to $460 million, into the U.S. each year. This represents about 10 per cent of total sales. Due to a drought and weather problems at harvest that affected this year's grade pattern, Canadian exports to the U.S. from August to December 2002 were below average, amounting to 137 800 tonnes of spring wheat and 191 600 of durum (compared to 533 000 tonnes and 211 000 tonnes, respectively, for the same period last year).

    "We are encouraged by the fact that the DOC has dismissed some of the subsidy allegations and that the preliminary tariffs have been set at a low level," added Ritter. "We believe that this preliminary ruling demonstrates that the case, as launched, is quite weak."

    When the preliminary tariffs are applied later this month, the CWB will be open for business for its American customers. Those customers will make the determination whether the tariffs are prohibitive, a decision which will vary from buyer to buyer. The CWB will explore all available options to obtain the maximum return for the wheat and durum grown by western Canadian farmers.

    The DOC is expected to make its final determination in July.

    Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.

    For more information, please contact:

    The Canadian Wheat Board.


    Well Tom your friends to the south have done it again.

    It is time that Canada take a little tougher stance with the US. Maybe a $70.00/MT tariff on corn imports into Canada.

    Trade wars do not work, but meekly taking your turn in the barrel doesn't work well either. Maybe a tarrif on energy shipped to the US. Beleive me folks we have nothing to loose.

    When country of origin lableing is implemented the sheep and ostriches in Canada are in for a rude awakening.

    #2
    Lets hope that the CWB is not low balling wheat into U.S. markets, or we will be in trouble. Yes, I agree, we should tariff export energy now if they want to play games but there is no politition in Canada with the ba@#s to do it.

    Comment


      #3
      dnach it does not matter what the CWB has been doing. The US has taken the attitude of being Fortress America, as I call it.

      Canadian Agriculture had better wake up now. This situation is only going to get worse.

      Comment


        #4
        Rain;

        I went to my closest district CWB accountability meeting last night...

        Interesting answers the CWB gave... and not Director Chatenany either... Mr. Earl Geddes ... director of farmer relations...

        Mr. Geddies was feeling his wheaties last night!

        And the US of A has been watching... and the CWB has proven by the fruit of it's actions... that the USA is totally justified in applying this Tarriff on Canada.

        Why do I say this?

        1. Over grading... the CWB forced our grain handlers to over deliver quality... especially the one I know of personnally on CWRS... durum I can't speak from personal experence... but CWRS is the big one anyway.

        2. THe CWB monopoly... forces farmers to deliver their highest quality wheat to the CWB... as the CWB is totally out to lunch on lower grades and feed wheats... again the economic result... the CWB forces the highest quality wheat into it's monopoly buying single desk.

        3. THe CWB does this... through the producer direct buy-back system... which is NOT the LAW or the CWB Act... but a goofy CWB contorted policy... that is not based in the CWB Act...

        AS Mr. Geddes pointed out so prophetically last night...

        THE BUY-BACK PAYS ME TO EXPORT TO THE USA.

        Mr. Geddes brought it all up on his own... I didn't do anything but talk about the section 46 and REG 14 of the CWB Act... and the difference between the price inside and outside Canada... and the benefit the Applicant receives buy the issuance of the CWB export license...

        AS I have personally profited from the buy-back... as have many including CDN grain companies selling into the US... and since this export subsidy I received is not authorised by the CWB Act... and breaks US trade law, WTO trade law... and Alberta property and civil rights laws constitutionally...

        Isn't it good the US has brought this to our attention... since the CWB laughs at Director Chatenay and myself whenever we bring it to the CWB's attention?

        Seed Malt barley goes into the USA at no cost for an export license... yet with no authorization from either part III of IV of the CWB Act... the CWB forces delivery into the pooling accounts of exactly the same quality... so the CWB can undercut the international malt barley prices...

        AND IT IS OBVIOUS when the CWB buys our Malt barley at 75cents on the dollar... that the CWB is up to something!

        AND presto... since US grain companies can secure cheaper malt barley from Canada... in the US... they build malt plants in the US... like the ones being built in Idaho and Montana right now. now... Good thing the US hasn't hit us on this one too!

        I personally think the US of A has been VERY charitable on this TariFF... IT COULD HAVE BEEN MUCH MORE, had the US wanted to be mean spirited IMHO!

        Comment


          #5
          Wouldn"t surprise me if the CWB has been doing some bad things to the USA. They screw the Western Canadian Farmer continually and 23% of us done even know it.

          Rain you are a numbers man what is $460 million divded by 1.5 million tonnes calulate out to in dollars per tonne. Have we ever grossed that much from the CWB on a particular grade of wheat. Oh I forgot it goes into the pool so ever encapable farm manager can benefit from the riches of others.

          I hopoe the CWB gets their butt kicked good. Because regardless of what Ken Ritter says we are not a fair commercial seller in the world market.

          Comment


            #6
            Anything else of interest from the meeting Tom.

            Comment


              #7
              Tom/Kernal, Do you think this is a CWB problem? I am not sure you two can be a little vague sometimes, I am not sure where you stand on the CWB, for or against.

              I don't think this is a CWB problem. I think over the last three years there has been a fundamental shift in US trade policy.

              Let me state my self the CWB could go tomorrow and I would love it. The only value I see in the CWB is they make it easy for grain producers to market there grains, beleive me there are a lot of producers who like this service.

              But Canada had better start looking now for new homes for the food we manufacture because I see no reason for the US to change the policy or direction they seem to be going in International Trade.

              After they get Canada and Mexico in shape they will start on others. I hope I don't sound like a character from an X-Files episode.

              I still think we should take countervailing duties on products from the US when there subsidies kick in. Corn LDP payouts are only pennies away.

              What do you think?

              Comment


                #8
                Just some agreement with Rain. The US subsidizes production far more than Canada and would allow us to capture both counter and anti dumping if we chose to go that route.

                Manitoba corn growers association did win a countervail but wasn't able to maintain because they couldn't demonstrate damage to the western Canadian corn industry (too small a player) - note the judgement was on corn and not feedgrains and done 2 or 3 years ago now. To be successfull, they would have had to bring Ontario Corn Growers on board. An Ont corn growers association and basically said the chance of this happening is somewhere between zero and none - they enjoy the privelege of having their corn priced on an export basis (US mid west plus transportation).

                I would also go carefull on your comments on over grading. A major requirement of any marketing system is to move product in commercial storage. There are times in the non board when a grain company will over deliver specifications (deliver 52 lb/bu barley when contract says 48) because that is what is in the system. The theory that everything gets matched up perfectly is not attainable.

                We need a made in Canada solution to the CWB issue - not something that is imposed on us by neigbbors. The US is becoming much more protectionist (something that will continue) as shown by soft wood lumber, country of origin labeling for meats, wheat counter vail. What will be next?

                Comment


                  #9
                  Charlie part of our problem is it has been very easy to go to the US for a long time with a lot of products.

                  They say "Whats good for the goose is good for gander" the US seems to be working off "Whats good for the goose is only for the goose".

                  The Anti CWB people out there are so mad at the CWB it is like they think all are evils are a result of the CWB. If the CWB was gone things would be better with the US. They are wrong. Ask the lumber jacks in BC.

                  Hog and Cattle producers beware the writing is on the wall. Country of origin lableing is coming and there is no way it will be good for Canada.

                  Where looking a buying either a Honda or Volkswagon. Do any of you readers have any recommentations. (Neither can be built in the US) I am doing my bit.

                  Comment


                    #10
                    Rain, My wife just bought a Hyundai Santa Fe. She loves it.

                    Comment


                      #11
                      Charlie and Rain;

                      I know that #1CWRS was shipped to the USA as #2CWRS... or the grain companies did not get US shipping orders from the CWB... take a look at the huge increase in shipping of #2CWRS last crop year to the USA!

                      THIS WAS NOT AN AcCIDENT... there was a VERY high percentage of #1CWRS grown last year... but "just by accident" the CWB ships a majority of CWRS to the US... supposedly one of our best markets... as #2CWRS! I have some more ocean front property in Alberta I can sell you!

                      In general we have had a reasonable relationship with the USA on grain trade... EXCEPT with CWB grains!

                      Shouldn't this tell us something?

                      Comment


                        #12
                        Tom grade means nothing when it comes down to it. We sold wheat that had to meet a minumum requirement. It is like selling barley that has to be min 48 lbs. You ship 52 lbs. In most instances you only get the minimum requirement price.

                        This is not a CWB problem, the CWB is just part of the reason the US is using to justify there action.

                        If the CWB was gone tomorrow the tarrif would stay.

                        You need to get around this idea it is a CWB thing. This is an American thing.

                        Pure and simple

                        Comment


                          #13
                          RAIN;

                          GRADE means evaluation of the grain itself... and is the basis of CWB existance...

                          GRADE is the physical properties of our grain, for the purpose of CDN Trade and Commerce LAW ... and according to CDN trade and commerce BNA Act 91 obligations... it must be graded, and graded officially and properly... to even come into and under the authority of the CGC and CGC.

                          THE CWB forced Canadian grain companies to break the Canada Grain Act... in order to get shipping tenders into the USA... and for that alone... the CWB should have a tariff applied against anything it handles!

                          Comment


                            #14
                            I said "it must be graded, and graded officially and properly... to even come into and under the authority of the CGC and CGC." should have been CGC and CWB.

                            THE Canada Grain Act requires by law, that a proper grade be applied to all grain.... no matter what the spec is...

                            If a customer wants #1CWRS quality... they must receive a #1... otherwise the producer protection purposes... and whole integrety of both the CG Act and CWB Act are compromised.

                            Comment


                              #15
                              Tom - I disagree with your statement
                              "... there was a VERY high percentage of #1CWRS grown last year... "

                              Dr. Tierney from KSU graphed the SK. wheat grades - it is available at the link below:

                              http://webercommodities.com/index.cfm?show=10&mid=53

                              On September 21, 13% was estimated to b #1CWRS in Saskatchewan and it got worse in October, Novemeber and December.

                              Comment

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