News Releases for January 2002
January 19, 2002
For further information, please Contact the Governor's Office
Hoeven Urges Prompt Administration Action on N.D. Wheat Commission Trade Case
BISMARCK, N.D. - Governor John Hoeven spoke with U.S. Trade Ambassador Allen Johnson this week to urge support for the North Dakota Wheat Commissions’ (NDWC) formal petition challenging the anti-competitive practices of the Canadian Wheat Board (CWB). Johnson gave the governor a status report in response to Hoeven’s call last week requesting the Administration’s support for the Wheat Commission’s trade complaint.
Johnson serves as the Chief Agriculture Negotiator for United States Trade Representative (USTR) Robert Zoellick.
“We need prompt and significant action on the part of the Administration to finally put an end to Canadian trade practices that circumvent free trade and fair competition to the detriment of our farmers,” Hoeven said.
The USTR had planned to release its formal determination in the investigation of Canadian wheat trading practices by January 22, 2002; however, due to the need to review the high number of comments received, the announcement will be made on February 15, 2002.
“During the past week, I spoke on several occasions with both U.S. Trade Representative Zoellick and Ambassador Johnson to urge the Bush Administration to take swift and firm action on the CWB,” Hoeven said. “Both expressed the importance of the issue to North Dakota farmers, and the need for decisive action,” according to Hoeven.
Hoeven said U.S. Trade Representative Zoellick is wholly opposed to the Canadian farm group monopolies, and the CWB abuses the market with that power,” Hoeven said. All Canadian wheat is traded through the CWB; individual farmers cannot market their own products.
According to Hoeven, the USTR essentially has three options to address anti-competitive policies and practices of the CWB. First, the USTR can impose a Tariff Rate Quota, effectively limiting the amount of wheat that Canada can import into the United States. That response would likely be challenged by Canada through a World Trade Organization (WTO) complaint.
The second option is for the U.S. to file its own complaint with the WTO, and the third is to use the information gained in the USTR investigation to highlight the CWB market distortions in forthcoming WTO world trade negotiations. The U.S. could work with other countries in the next trade round to incorporate state-trading enterprise reforms, Hoeven said.
“The challenge with trying to negotiate in the next trade round is that it will take 14 to 20 months to see a policy reform,” Hoeven said. “The matter of fair farm trade with Canada is of critical importance to North Dakota farmers, and they need action now. Therefore, I urge the strongest action possible.”
In September of 2000, the North Dakota Wheat Commission filed a petition under section 301 of the Trade Act of 1974, asking the USTR to investigate and take action against the wheat trading practices of the Canadian trade system.
E-mail comments to the Governor
