The Canadian Wheat Board (CWB) has teamed up with the Government of Canada and the provincial governments of Saskatchewan and Alberta in an attempt to reverse part of the ruling that has closed the U.S. border to Canadian exports of hard red spring wheat. Yesterday, the CWB and the governments filed the first papers in their appeal to a NAFTA panel on the finding that sales of Canadian hard red spring wheat into the U.S. during the period of investigation were unfairly subsidized.

"By joining forces, we have a better chance of reducing the current tariffs of 14.15 per cent on hard red spring wheat," said Ken Ritter, chair of the CWB's farmer-controlled board of directors.

Ritter said the joint action with the governments will complement the CWB's own appeal of the ITC decision to a NAFTA review panel on the finding that Canadian exports to the U.S. cause injury to American farmers.

"At a minimum, our intent with this appeal is to have the tariffs completely eliminated, not just reduced. We're following a two-pronged approach to get some relief for Prairie farmers who have built a strong business relationship with U.S. millers," said Ritter. The CWB plans to file this notice of appeal on injury by November 24, 2003.

The CWB is also working with the federal government to explore possible WTO challenges of all three rulings - the anti-dumping and countervailing duty rulings from the U.S.

Department of Commerce and the injury ruling from the ITC. More details on this approach will be forthcoming. The CWB will not be appealing the anti-dumping ruling through a NAFTA review panel.

On October 4, 2003, four ITC commissioners handed down the final ruling on a case launched on Friday, September 13, 2002 by the North Dakota Wheat Commission. The ITC ruled on whether imports of Canadian durum and hard red spring wheat were injuring U.S. durum and wheat farmers. The commissioners voted unanimously (four-zero) that there was no injury to U.S. durum farmers and therefore, tariffs of 13.55 per cent on durum wheat were removed. On hard red spring wheat, however, despite a two-two, tie vote by ITC commissioners, punitive tariffs of 14.15 per cent on imports of Canadian hard red spring wheat were maintained and could last up to five years.

"Even with the written decision now public, we remain perplexed at how those two commissioners could agree that durum imports are not causing injury but spring wheat imports are. It just doesn't make sense and it seems that their conclusions were based on data that everyone, even the North Dakota Wheat Commission, agreed was flawed. These aren't the only problems with their analysis that we will be exploiting during the appeal processes," said Ritter.

He also noted that the CWB will be meeting with farmers and farm organizations in the major wheat-producing states in an attempt to broaden the understanding of the CWB's operations and dispel persistent myths.