The Senate, renowned for its leisurely pace of legislative activity, is rushing this week to approve legislation that would bring Canada’s handling and transport of imported American grain into compliance with World Trade Organization rules.
If Bill C-40 is not approved before Aug. 1, the United States would be able to retaliate against Canadian agricultural imports with tariffs, although the process of deciding how much and on which products would drag on into autumn at least.
Canadian officials say they would argue for a delay in American penalties because Canada is trying to comply.
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With a confidence vote on the minority Liberal government scheduled for May 19, the rush is to get the bill through the Senate and into law in case the government falls, Parliament is dissolved and all unapproved bills die.
The Senate was taking the rare step of sitting Monday night to give C-40 and several other bills approval in principle so they can go to committee and come back to the Senate for final approval by mid-week.
To get the legislation through the House of Commons quickly, the governing Liberals agreed to a Conservative amendment that within a year, an independent and comprehensive review of the Canada Grains Act and the Canadian Grain Commission be done and its recommendations made public.
The recommendation was in response to the fact that many witnesses at the committee complained about the grain commission and the fact that a 2002 review of the commission conducted for Agriculture Canada has never been made public nor acted upon.
At a Commons committee hearing, a government representative said it is clear industry groups want the grain commission investigated. He said the Liberals were willing to do that in order to get the legislation approved.
“It locks the government into doing the kind of review producers want,” said Wayne Easter, parliamentary secretary to agriculture minister Andy Mitchell.
Witnesses complained about commission bureaucracy and decisions that cost the industry money and sometimes sales.
If approved, the legislation would change Canada’s grain legislation to ensure American grain imports receive “national treatment” as required by a WTO judgment last year against Canada.
An existing rule that prior grain commission approval is necessary before American grain can be imported or mixed would be replaced by a requirement only for prior notification.
And imported American grain destined to be handled in the Canadian system rather than simply transported through Canada would fall under the railway revenue cap of the Canada Transportation Act, ensuring lower freight rates.
