SASKATOON – There were red boxing gloves at the podium, but neither the Canadian nor the U.S. representative chose to put them on at a debate on the two countries’ recent dispute in wheat trade.
In fact, the evening session during last week’s Crop Production Show was more like a supper-table discussion than a title fight.
About 300 people listened to Doug Campbell, president of the Canada Grains Council and Robert Petersen, president of the Washington, D.C.-based National Grain Trade Council discuss the wheat dispute.
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After citing statistics on wheat production and trade in both countries during the last 10 years, Campbell described the U.S. political events that led to last summer’s trade restrictions. Petersen discussed the economic and political reasons for rising imports in the U.S. But both spoke optimistically about future trade.
“Let’s keep our minds on the positive and work together as we sort through what can be … sometimes a nasty, ugly little spat. But let’s look at them as family spats among family members and all pull together for the greater good,” said Petersen.
“I do apologize to all of you that there isn’t blood on the floor,” quipped Campbell in his closing remarks.
Farmers like Eric Wilmot of Carnduff, Sask., and Lorne Pincemin of Kindersley, Sask., appreciated the calm approach.
“There wasn’t the teeth to their speeches that I thought there might be,” said Pincemin. “But I found it interesting to have them pinpoint what they thought were the irritants for the U.S. farmers … maybe some of them we can work with because it sounds like we’re changing the WGTA (Western Grain Transportation Act) to something that can be acceptable to them.”
Petersen said the orderly structure and perceived government involvement in Canada’s grain marketing and transportation system is a continued irritant.
“But as long as wheat board pricing policies remain secretive, that will continue to be a sore point, and in my opinion, THE sore point.”
He added that a change to the method of payment for the Crow Benefit will remove some criticism of the Canadian farming system.
Could have been worse
The council represents many industry stakeholders, including grain companies, milling and processing companies, transportation, futures, banks, grain marketing associations and boards of trade. Because of its free market approach, it argued against the caps set on Canadian wheat last summer.
Even though the council lost the battle, Petersen says the deal “could have been a lot worse” for Canada.
Petersen and his council are not big fans of the Export Enhancement Program – “it seems to fly in the face of everything that is logical” – nor the fierce protectionism of the northern interior states.
He predicted political pressure will be lessened this year because of the “healthier” picture in world wheat trade. EEP payments, he said, will continue to decrease because of GATT.
