Winnipeg, Manitoba, Canada
October 30, 2008
The right of western Canadian
farmers to sell their grain into the U.S. market has new teeth
after the CWB won a precedent-setting victory in trade court
last week.
The U.S. Court of International Trade (CIT) ruled on October 20
that the U.S. Department of Commerce must return any duties from
tariffs that were unfairly applied to imports of Canadian spring
wheat between August 2003 and February 2006.
"This ruling sets a valuable precedent for anyone who trades
into the United States, including western Canadian wheat
farmers," said CWB chair Larry
Hill, who farms near Swift Current, SK. "There are now clearer
rules about what happens at the end of the process when a trade
dispute is settled - it gives more meaning to our rights under
NAFTA."
The decision ties up the last remaining loose ends of the most
extensive trade battle ever to involve Canadian grain. An
anti-dumping and counterveiling duty case launched in 2002 by
the North Dakota Wheat Commission resulted in tariffs that
virtually halted Canadian spring wheat imports into the U.S. for
almost three years. After the CWB appealed to a NAFTA tribunal,
the tariffs were deemed to have been unfairly imposed and
imports resumed.
The CIT concluded last week that repaying the duties was
demanded by both logic and law. "Because the subject imports
(Canadian spring wheat) caused no injury during any time
relevant to this inquiry, CWB should owe no duties," the court
said.
The U.S. is a valuable nearby market for Canadian grain. Last
year, about $275 million worth of spring wheat was sold into the
U.S., about seven per cent of total spring wheat exports.
Since free trade began with the U.S. in 1989, there have been 14
American trade actions launched against Canadian wheat exports.
The CWB has repeatedly shown that its marketing practices on
behalf of Prairie farmers are fully compliant with international
trade rules.
Controlled by western Canadian farmers, the CWB is the
largest wheat and barley marketer in the world. One of Canada's
biggest exporters, the Winnipeg-based organization sells grain
to over 70 countries and returns all sales revenue, less
marketing costs, to farmers. |
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