USTR TARGETS CANADIAN WHEAT BOARD

According to an April 19, 2002 press release from the Office of the US Trade Representative (USTR), Chief Agriculture Negotiator Allen Johnson affirmed the Bush Administration's commitment to aggressively pursue a multi-pronged strategy to remedy the Canadian Wheat Board's (CWB) unfair trade advantages. In testimony before the US Senate Committee on Commerce, Science, and Transportation, Johnson stated that, USTR is "seeking meaningful and permanent reform of the Canadian Wheat Board."

In response to a petition filed by the North Dakota Wheat Commission in September 2000 under section 301 of the Trade Act of 1974, USTR undertook an unprecedented 16-month investigation examining the practices of the Canadian Wheat Board. In addition to inviting public comment twice on the investigation, USTR requested that the US International Trade Commission (USITC) examine the competitive practices of the Canadian Wheat Board in the US market and overseas.

On February 15, 2002, US Trade Representative Zoellick issued an "affirmative finding" that reviewed the results of its investigation, detailed the CWB's monopolistic characteristics, and described the steps USTR would take to address this issue. USTR is preparing to launch a WTO dispute settlement case against the CWB.In addition, both countervailing duty and antidumping investigations are being considered. Specific impediments to US wheat entering Canada are being identified and will be presented to the Canadian government for bilateral resolution.The US pressed successfully to have export competition as the first negotiating agenda item to be discussed in June at WTO agriculture negotiations. The US will also target the CWB through comprehensive and meaningful reform of monopoly state trading enterprises in the WTO agriculture negotiations.

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