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Canada suspends tariff

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Published: September 11, 1997

The United States won a small concession from Canada this week in response to its continuing complaints about impediments to imports of American grain.

On Sept. 8, Canada announced it will suspend the small tariff of 23 cents per tonne it has on imports of American barley and barley products. Last year, 84,000 tonnes came north.

Canada does not have to remove the tariff until American subsidies to barley producers fall to equal or below Canadian levels.

At a meeting in Ottawa last week between Canadian and American trade officials, it was indicated American support should fall to Canadian levels by next spring.

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Agriculture minister Lyle Vanclief said although the tariff was small and had little “practical” impact, it was an irritant that was lifted in the interests of freer trade.

At the Ottawa meeting Sept. 4, Canadian trade officials also agreed to review American complaints about other import paperwork requirements considered a barrier to U.S. grain sales into Canada.

A spokesperson for Vanclief said Canada will look at whether the requirement that there be an end-use certificate for wheat imports is still necessary to safeguard the reliability of the Canadian grain quality system.

Both Canada and the U.S. require end-use certificates for wheat.

Canada has insisted on the certificate to make sure the integrity of the Canadian system is maintained, said Vern Greenshields, Vanclief’s spokesperson.

“But are there other ways that is already being protected by the grain commission through their paperwork? They are looking at that from both sides whether there are other means (to accomplish the goal) and then they will take it back to their political bosses,” said Greenshields.

The discussions were part of a regular series of meetings between the two countries to talk about cross-border grain issues including the continuing U.S. suggestion that Canada voluntarily cap its grain exports south at 1.5 million tonnes. The next meeting likely will be before the end of the year.

Meanwhile, Vanclief and U.S. agriculture secretary Dan Glickman are still trying to arrange their first formal meeting since the Canadian minister took the job in June.

About the author

Barry Wilson

Barry Wilson is a former Ottawa correspondent for The Western Producer.

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