WASHINGTON, D.C. – American legislators seem to view Canada as a good trade ally, despite trade skirmishes fought over agricultural commodities during the past decade.
While aggravated by things like the Canadian Wheat Board sales monopoly and the current trade challenge against imports of U.S. grain corn, the Americans describe subsidies paid to European farmers as a far greater concern.
“Canada, frankly, has been a very good partner in trying to put pressure on the Europeans to make the kind of concessions that they should be making,” said Saxby Chambliss, chair of the U.S. Senate Agriculture Committee.
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“Within the WTO (World Trade Organization) framework, our major problems are certainly not with Canada.”
During the past decade, the Americans have challenged imports of cattle, grain and hogs from Canada, which has fostered a sentiment in Canada that the United States is becoming more protectionist when it comes to agriculture.
However, U.S. House agriculture committee chair Bob Goodlatte has a different perception.
“Our markets are open. Other markets are closed,” he said, speaking with reporters during a visit arranged by North American Agricultural Journalists April 4.
“We can’t back away from trade. We produce large quantities of a number of different commodities where we export as much, if not more, than what we consume domestically.”
In the current round of WTO negotiations, there are no proposals that appear likely to win the support of the U.S. Congress, Goodlatte said. While still hopeful that a WTO agreement will eventually be reached, he’s more encouraged by the trade access being gained through bilateral trade agreements.
“These are easier to do from the standpoint of the certainty you get when you negotiate. The language that goes into the agreement can be very specific because you only have a few parties around the table negotiating.”
Current system works
Chambliss described the North American Free Trade Agreement as a good venue for trying to resolve trade differences between Canada and the United States.
He showed no desire to see the definition of dumping revisited under current circumstances.
“We’ve got a definition within NAFTA and I think we need to continue to operate within that definition at this point in time.”
As for the current trade action against U.S. corn imports, he made it clear that the issue has not escaped the attention of politicians on Capitol Hill.
“Canada’s a pretty good (corn) market for us. Your livestock industry has shown a lot of growth over the last couple of decades.”
Goodlatte echoed the sentiment from Chambliss that Canada is viewed as a friend rather than foe when it comes to pressing for greater market access.
“I think Canada is viewed as being kind of an ally in terms of trying to get market access, because Canada is in the same situation. They produce a lot of certain types of commodities that aren’t consumed in Canada and therefore they need access to other markets.”
