The latest American trade challenge against the Canadian Wheat Board could get caught up in the fallout from terrorist attacks south of the border.
The United States Trade Representative was to rule Oct. 23 on the case launched a year ago by the North Dakota Wheat Commission.
But last week the North Dakota group asked the USTR to push that deadline back three months to Jan. 22.
“We must be sensitive to the tragic events of Sept. 11,” said commission chair Maynard Satrom. “An extension of the deadline will allow the administration to focus on the current crisis while still allowing for full consideration of the Canadian Wheat Board’s market-distorting practices.”
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The USTR had not responded to the request by press time.
Wheat board policy analyst Alexandra Lamont said that while the agency would like to see the case brought to a conclusion quickly, it isn’t overly concerned about a possible delay.
“We don’t think it’s going to affect the outcome either way,” she said.
“We think our position is strong and is going to be recognized as such whether the decision is made in October or January.”
She added she suspects the North Dakota group must think it has something to gain from a delay or it wouldn’t have made the request.
The USTR did earlier grant a one-month extension to the International Trade Commission, which was to have submitted on Sept. 24 the results of an investigation into the state of competition between Canada and the U.S. in world wheat markets.
That confidential report is considered crucial to the outcome of the wheat commission’s case, which alleges the board engages in a variety of unfair and illegal trade-distorting practices.
The commission has asked the USTR to restrict imports of Canadian wheat and durum and to bring in longer-term measures to force changes in the wheat board.
The challenge was launched Oct. 23, 2000, under Section 301 of the U.S. Trade Act, which specifies that a decision must be announced within one year. Lamont said the board was uncertain whether the USTR has the legal authority to extend that deadline.
She added that while it’s clear the U.S. economic and political system has undergone a profound change as a result of the terrorist attacks, it’s not as clear whether that will spill over into trade issues.
“Business does go on as usual, but there is uncertainty over how all this might affect the outcome,” she said.
