Why are grain farmers being held hostage by a War Measures Act?

petros

The Central Scrutinizer
Nov 21, 2008
120,146
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Low Earth Orbit
we all received our cheque for full payment ($7.00/bushel)
Who paid freight? How many went to ND? Was it enough to overwhelm the ND market or a drop in bucket? How much did you recieve in subsidies and tax credits in 95? Did you use or not use those credits illegally? What was you wheat worth after all included?

Do you think a single farmer can compete against Cargill or Louis Dreyfus on the global market?

You still never answered my question about spot pricing and pool pricing. Do you understand the difference?

By the way is wheat still $1.75 a bushel?

07 April 2004
U.S. Wins Important Ruling in WTO Wheat Case With Canada


WTO agrees that Canada's grain distribution system is unfair

The World Trade Organization (WTO) agrees with the United States that Canada's grain distribution system is unfair and violates Canada's WTO obligations, according to U.S. Trade Representative (USTR) Robert Zoellick.

In an April 6 press release, Zoellick announced that the WTO accepted the U.S. claim that Canada's grain handling system, "rail revenue cap," and prohibition on mixing foreign and domestic grain discriminate against foreign grain.
Zoellick applauded the ruling as a victory for the American farmer.

Although the United States prevailed on most of the matters in the dispute, the WTO ruled against the United States with respect to the practices of the Canadian Wheat Board, the USTR press release indicated.
Zoellick said the Canadian Wheat Board ruling demonstrates the need to reform WTO rules to effectively address monopolistic state trading enterprises.

Both the United States and Canada may appeal the WTO report.


Following is the text of the USTR press release:
(begin text)


OFFICE OF THE U.S. TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C.
FOR IMMEDIATE RELEASE
April 6, 2004

U.S. Wins Key Issues in WTO Wheat Dispute With Canada
Report Is a Win for American Wheat Farmers: Calls for Reform of Canada's Discriminatory Grain Distribution System

Washington -- U.S. Trade Representative Robert B. Zoellick announced today that a World Trade Organization (WTO) panel has agreed with the United States that Canada's grain distribution system is unfair and violates Canada's WTO obligations. This result is consistent with a long history of WTO rulings that additional regulatory hurdles cannot be placed only on foreign products. The panel accepted the U.S. claims that Canada's grain handling system and Canada's rail transportation measure known as the "rail revenue cap" discriminate against foreign grain.

"This is a win for American farmers. The WTO found that Canada unfairly discriminates against American wheat and grains," Zoellick said. "In matters involving dairy, lumber, and now wheat, the United States has successfully prevailed at the WTO on key issues concerning unfair Canadian practices."

The panel found against the United States with respect to the unfair practices of the Canadian Wheat Board. The panel found that WTO rules do not prevent state trading enterprises like the Canadian Wheat Board from using their monopolistic privileges to the disadvantage of commercial actors.

"The finding regarding the Canadian Wheat Board demonstrates the need to strengthen rules on state trading enterprises in the WTO," Zoellick said. "The United States will continue through the WTO negotiations to aggressively pursue reform of the WTO rules in an effort to create an effective regime to address the unfair monopolistic practices of state trading enterprises like the Canadian Wheat Board."

In the last six months, the Canadian Wheat Board announced that it overpaid Canadian farmers for their 2002 wheat crop by US$65 million. The government of Canada will pay the Canadian Wheat Board to make up this shortfall. Although not a part of the WTO case, it is an example of one of the many special privileges granted to the Canadian Wheat Board by the Canadian government that makes it difficult for private-sector actors to compete on a level playing field with the Canadian Wheat Board.

The WTO panel sided with the United States on most of the claims in this dispute. Specifically, the panel found that:
(1) Canada's mandatory authorization requirements for foreign grain entering Canadian grain elevators violate national treatment principles.
(2) Canada's "rail revenue cap," which may result in lower rail transportation rates for the Canadian Wheat Board than for imported grain, also violates national treatment principles.
(3) Canada's prohibition on mixing foreign grain with Eastern Canadian grain also violates national treatment principles.
The panel did not find that the Canadian Wheat Board export regime violates Canada's obligations under GATT Article XVII governing the behavior of state trading enterprises.

Both the United States and Canada each may appeal the report. The United States is currently reviewing its options regarding appeal. If neither party appeals, the report could be adopted by the WTO.

BACKGROUND

The United States filed this dispute against Canada in the World Trade Organization (WTO) challenging the unfair and burdensome requirements that the Canadian grain handling system places on imported grain, including U.S. grain, and certain discriminatory aspects of the rail transportation system in Canada. The dispute also challenges monopolistic wheat-trading practices of the Canadian Wheat Board (CWB).

The United States believes that these unfair practices put American farmers at a disadvantage and undermine the integrity of the international trading system. The United States requested consultations with Canada on these issues in December 2002, but the parties failed to resolve their differences. A panel was first established on March 31, 2003. The panel issued an interim report to the parties on December 22, 2003.

This WTO challenge followed from a Section 301 investigation completed in February 2002. At the conclusion of the investigation, the administration set forth an aggressive four-prong program to seek relief for American wheat farmers from the unfair trading practices of the Canadian Wheat Board and the Canadian government. One of these initiatives was the filing of this WTO challenge.
The other parts of the administration's action plan included support for U.S. industry's anti-dumping and countervailing duty petitions related to imports of durum wheat and hard red spring wheat from Canada. In October 2003, the Commerce Department imposed anti-dumping and countervailing duties on Canadian hard red spring wheat.

USTR also has worked to identify impediments to U.S. wheat entering Canada. The part of the WTO dispute regarding Canada's grain handling and rail transportation systems is a direct result of that investigation. Finally, through the WTO negotiations, the United States has aggressively pursued permanent reform of monopolistic export state trading enterprises such as the Canadian Wheat Board. The United States has made solid progress in those negotiations, gaining international support for the U.S. proposal on export state trading enterprises.
(end text)
(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)



I'd like to see a Canadian try to sell a peanut in the US.

In October 2003, the Commerce Department imposed anti-dumping and countervailing duties on Canadian hard red spring wheat.
8 years after the a handful of misinformed sold their grain in ND....
 
Last edited:

ironsides

Executive Branch Member
Feb 13, 2009
8,583
60
48
United States
Wheat is selling for $258.1769 US, per metric ton. 11/26/10

"I'd like to see a Canadian try to sell a peanut in the US."

Ok, come on down and buy some then seel them retail, no other way you can get them. Climate just to cold.
 

westernfarmer

New Member
Nov 24, 2010
7
0
1
Who paid freight? How many went to ND? Was it enough to overwhelm the ND market or a drop in bucket? How much did you recieve in subsidies and tax credits in 95? Did you use or not use those credits illegally? What was you wheat worth after all included?

Do you think a single farmer can compete against Cargill or Louis Dreyfus on the global market?

You still never answered my question about spot pricing and pool pricing. Do you understand the difference?

By the way is wheat still $1.75 a bushel?

07 April 2004
U.S. Wins Important Ruling in WTO Wheat Case With Canada


WTO agrees that Canada's grain distribution system is unfair

The World Trade Organization (WTO) agrees with the United States that Canada's grain distribution system is unfair and violates Canada's WTO obligations, according to U.S. Trade Representative (USTR) Robert Zoellick.

In an April 6 press release, Zoellick announced that the WTO accepted the U.S. claim that Canada's grain handling system, "rail revenue cap," and prohibition on mixing foreign and domestic grain discriminate against foreign grain.
Zoellick applauded the ruling as a victory for the American farmer.

Although the United States prevailed on most of the matters in the dispute, the WTO ruled against the United States with respect to the practices of the Canadian Wheat Board, the USTR press release indicated.
Zoellick said the Canadian Wheat Board ruling demonstrates the need to reform WTO rules to effectively address monopolistic state trading enterprises.

Both the United States and Canada may appeal the WTO report.


Following is the text of the USTR press release:
(begin text)


OFFICE OF THE U.S. TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C.
FOR IMMEDIATE RELEASE
April 6, 2004

U.S. Wins Key Issues in WTO Wheat Dispute With Canada
Report Is a Win for American Wheat Farmers: Calls for Reform of Canada's Discriminatory Grain Distribution System

Washington -- U.S. Trade Representative Robert B. Zoellick announced today that a World Trade Organization (WTO) panel has agreed with the United States that Canada's grain distribution system is unfair and violates Canada's WTO obligations. This result is consistent with a long history of WTO rulings that additional regulatory hurdles cannot be placed only on foreign products. The panel accepted the U.S. claims that Canada's grain handling system and Canada's rail transportation measure known as the "rail revenue cap" discriminate against foreign grain.

"This is a win for American farmers. The WTO found that Canada unfairly discriminates against American wheat and grains," Zoellick said. "In matters involving dairy, lumber, and now wheat, the United States has successfully prevailed at the WTO on key issues concerning unfair Canadian practices."

The panel found against the United States with respect to the unfair practices of the Canadian Wheat Board. The panel found that WTO rules do not prevent state trading enterprises like the Canadian Wheat Board from using their monopolistic privileges to the disadvantage of commercial actors.

"The finding regarding the Canadian Wheat Board demonstrates the need to strengthen rules on state trading enterprises in the WTO," Zoellick said. "The United States will continue through the WTO negotiations to aggressively pursue reform of the WTO rules in an effort to create an effective regime to address the unfair monopolistic practices of state trading enterprises like the Canadian Wheat Board."

In the last six months, the Canadian Wheat Board announced that it overpaid Canadian farmers for their 2002 wheat crop by US$65 million. The government of Canada will pay the Canadian Wheat Board to make up this shortfall. Although not a part of the WTO case, it is an example of one of the many special privileges granted to the Canadian Wheat Board by the Canadian government that makes it difficult for private-sector actors to compete on a level playing field with the Canadian Wheat Board.

The WTO panel sided with the United States on most of the claims in this dispute. Specifically, the panel found that:
(1) Canada's mandatory authorization requirements for foreign grain entering Canadian grain elevators violate national treatment principles.
(2) Canada's "rail revenue cap," which may result in lower rail transportation rates for the Canadian Wheat Board than for imported grain, also violates national treatment principles.
(3) Canada's prohibition on mixing foreign grain with Eastern Canadian grain also violates national treatment principles.
The panel did not find that the Canadian Wheat Board export regime violates Canada's obligations under GATT Article XVII governing the behavior of state trading enterprises.

Both the United States and Canada each may appeal the report. The United States is currently reviewing its options regarding appeal. If neither party appeals, the report could be adopted by the WTO.

BACKGROUND

The United States filed this dispute against Canada in the World Trade Organization (WTO) challenging the unfair and burdensome requirements that the Canadian grain handling system places on imported grain, including U.S. grain, and certain discriminatory aspects of the rail transportation system in Canada. The dispute also challenges monopolistic wheat-trading practices of the Canadian Wheat Board (CWB).

The United States believes that these unfair practices put American farmers at a disadvantage and undermine the integrity of the international trading system. The United States requested consultations with Canada on these issues in December 2002, but the parties failed to resolve their differences. A panel was first established on March 31, 2003. The panel issued an interim report to the parties on December 22, 2003.

This WTO challenge followed from a Section 301 investigation completed in February 2002. At the conclusion of the investigation, the administration set forth an aggressive four-prong program to seek relief for American wheat farmers from the unfair trading practices of the Canadian Wheat Board and the Canadian government. One of these initiatives was the filing of this WTO challenge.
The other parts of the administration's action plan included support for U.S. industry's anti-dumping and countervailing duty petitions related to imports of durum wheat and hard red spring wheat from Canada. In October 2003, the Commerce Department imposed anti-dumping and countervailing duties on Canadian hard red spring wheat.

USTR also has worked to identify impediments to U.S. wheat entering Canada. The part of the WTO dispute regarding Canada's grain handling and rail transportation systems is a direct result of that investigation. Finally, through the WTO negotiations, the United States has aggressively pursued permanent reform of monopolistic export state trading enterprises such as the Canadian Wheat Board. The United States has made solid progress in those negotiations, gaining international support for the U.S. proposal on export state trading enterprises.
(end text)
(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)



I'd like to see a Canadian try to sell a peanut in the US.

8 years after the a handful of misinformed sold their grain in ND....
petros said "8 years after the a handful of misinformed sold their grain in ND...."

The anti-dumping was not from us farmers. Do you what dumping is? The CWB is the one offering our wheat at prices less than the US market prices which in turn brings up the charges of dumping.

For those that can't be convinced that the CWB monopoly is plain wrong would economic reasons work? If Canada's share of world wheat trade has gone from 23% to 15% in 15 years how is that a good reflection of the effects of the CWB on marketing. Ontario where there is no monopoly has increased their wheat acreage so the west has decreased their acres even more than the stats would indicate. How is it fair that Ontario or anywhere else but the 3 prairie provinces is not controlled by the CWB monopoly in the marketing of wheat.
Shouldn't all Canadians be treated equally. Maybe we should be demanding that all the rest of Canada be put under the same control, as we are being discriminated against. Our farm has gone from 100% durum wheat 10 years ago to 0% this year. We grow over 7000 acres of crops annually.

The president of the Western Canadian Wheat Growers Association wrote the following letter to the Globe and Mail:

Letter to the Editor
Globe & Mail

Dear Editor,

In his article, writer Paul Waldie correctly notes that Canada’s market share in the global wheat trade has declined from 23 per cent to 15 per cent in the past 15 years. (The growing problem: Canada slips from agricultural superpower status, Globe & Mail, November 24, 2010).

However, what he did not mention is that this loss in market share is primarily due to the stifling presence of the Canadian Wheat Board monopoly. The monopoly prevents Western Canadian farmers from selling our wheat directly to flour millers and other buyers. The resulting low prices have contributed to prairie farmers shifting eight million acres out of wheat and into more profitable open market crops such as canola, peas, oats and lentils.

Ontario farmers do not suffer from a wheat monopoly. For the past seven years, farmers in Ontario have been free to export their wheat or to sell it directly to millers. As a result wheat acreage in Ontario has been increasing at the expense of western farmers.

Growing wheat on the prairies will become more profitable as soon as Parliament ends this discriminatory policy and gives prairie farmers the same marketing freedom that Ontario farmers now enjoy. When that day arrives, Canada will be on the path to restoring its rightful place as a global superpower in agriculture.

Sincerely,

Kevin Bender
President
Western Canadian Wheat Growers Association

Agri-ville.com - Community Centre - Commodity Marketing
 

petros

The Central Scrutinizer
Nov 21, 2008
120,146
14,846
113
Low Earth Orbit
In his article, writer Paul Waldie correctly notes that Canada’s market share in the global wheat trade has declined from 23 per cent to 15 per cent in the past 15 years. (The growing problem: Canada slips from agricultural superpower status, Globe & Mail, November 24, 2010).

However, what he did not mention is that this loss in market share is primarily due to the stifling presence of the Canadian Wheat Board monopoly.
Bull****!!! Wheat exports are down because of the huge increase in oilseed and protein acreage.
 

westernfarmer

New Member
Nov 24, 2010
7
0
1
petros said "Bull****!!! Wheat exports are down because of the huge increase in oilseed and protein acreage"

What exactly is protein acreage? Farmers cannot grow a crop like canola or soybeans continuously under the proper agronomic management. They need a cereal at least once every 2 years for proper disease, nutrient and weed management. We grow canola once every 2 or 3 years but need a cereal like wheat, barley or canary seed. Grain corn cannot be grown profitably in this area or most of western Canada and there is very limited demand for feed corn. If oilseed production is up here it also up everywhere else, so why are we losing MARKET SHARE.