The list of names in the group of Canadian cattle producers banding together to launch their industry’s first ever trade challenge against the United States has been made.
The Canadian Cattlemen for Fair Trade had until the end of October to gather a list of producers willing to open their books and publicly verify that the American border closure to live cattle hurt their business.
In the fall, when the group announced it was filing a Chapter 11 investment challenge under the North American Free Trade Agreement, five large feedlots from southern Alberta submitted their notices of intent documenting the damages caused by the border closure. There are now 124 producers, mainly cattle feeders, from across Canada who have filed notices of intent that the border closure caused them damages, which cumulatively add up to more than $300 million.
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“We’ve lost a lot of money,” said Rick Paskal, the feedlot operator from Picture Butte, Alta., who heads up the trade challenge.
Since the initial announcement, Paskal crossed the country talking to producers who were willing to join the trade challenge. A NAFTA-accredited accountant had to verify damages to the businesses of those involved in the action.
“They’ve got to be able to substantiate damages from the border closure,” said Paskal.
“It’s going to happen and we’re going to make it happen.”
Under a Chapter 11 investment challenge, Canadian producers must prove the American action is harming a Canadian’s investment in the United States. The group of Canadian cattle producers must prove the border closure changed from a health issue to a political issue and caused them financial harm.
The producers said their industry would not have been built as extensively without access to the American market. That access is their investment in the U.S.
Paskal said it should be the responsibility of governments or cattle industry associations to launch a trade challenge, not a group of individual producers already struggling financially.
“We shouldn’t be doing this, but why won’t industry represent us? Why won’t government represent us? These 124 people are putting out a boat load of money to hire these lawyers and accountants,” said Paskal, who added the group has already spent half a million dollars without even beginning serious discussions with American officials.
Next week, lawyers for the group will be in Washington, D.C., to present the $300 million bill to U.S. state department officials. Then begins the process of establishing a NAFTA tribunal. Discussions could be held by spring if the case can be heard.
Stan Eby, president of the Canadian Cattlemen’s Association, said while he recognizes the frustration by cattle producers, the advice to his organization has always been that any trade action by Canadians would take the American focus off reopening the border.
“When a government to government action starts, all other action stops. We felt there was activity on the rule, and to urge the government to make that move at that stage could jeopardize where we were in the whole process. It’s not an easy decision,” said Eby, a cow-calf producer and feedlot operator from Kincardine, Ont.
“It’s definitely very frustrating as this has been dragging on.”
Eby said the CCA has drawn its own line in the sand. If there is no movement by Dec. 1, the association will ask the federal government to launch a trade challenge.
“We’ve been led to believe this bill will move after the election. If not, we will be urging the government to take action either with NAFTA or WTO (World Trade Organization),” said Eby.
