A cut of 2.75 percentage points to the U.S. tariff on Canadian wheat falls short of giving Prairie farmers the access they deserve to the American market, the Canadian Wheat Board (CWB) stated today.

In response to an order by a North American Free Trade Agreement (NAFTA) panel, the U.S. Department of Commerce yesterday announced it will lower the level of countervailing duties on imports of Canadian hard red spring wheat to 2.54 per cent from 5.29 per cent. The duties are part of an overall 14.15-per-cent tariff that has essentially closed the border to Canada's largest crop since mid-2003.

The NAFTA ruling resulted from an appeal of the duties by the CWB. Two separate NAFTA panels have agreed with CWB arguments against the tariff. The CWB is considering another appeal due to this unsatisfactory U.S. response.

"We remain adamant that there is no basis for this tariff at all," said CWB board of directors chair Ken Ritter, a farmer from Kindersley, Saskatchewan. "By our calculations, this countervailing duty should be at zero. The U.S. government has done some pretty creative accounting to keep it in place at all."

"It seems that as soon as a commodity is successful in the American market, up come the tariff walls. Under free trade, we have the right to sell wheat into that market."

Fighting U.S. trade harassment has cost western Canadian farmers more than $15 million in legal fees since free trade began. American customers are interested in the high-quality wheat from Western Canada, because they value its consistent grade and supply. Before the tariff was imposed, about one million tonnes of Canada Western Red Spring (CWRS) wheat was sold into the U.S. each year, worth about $250 million. Ongoing loss of the American market will lower returns for western Canadian wheat by about $50 million a year.

"We will keep fighting on behalf of western Canadian farmers until this tariff is completely removed," said Ritter. "We are very hopeful that the outcome of our other NAFTA appeal will see that happen before the year is out."

In the other NAFTA ruling, released June 7, the panel said it could find "no substantial evidence" to support the wheat tariff. The U.S. International Trade Commission has been given until October to respond.

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.