SASKATOON (Staff) – Farmers should expect to see a “relentless” attack on the Canadian Wheat Board from the United States over the next few years, says a board official.
And it will most certainly be in full swing in time for the next round of world trade talks, which get under way in 1999, says Brian Oleson.
“We should be preparing ourselves now for what will be almost certainly a major strategy of the U.S. in the next round,” he told delegates attending the annual convention of the National Farmers Union.
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The Americans have already begun laying the political groundwork to have so-called state trading enterprises (STEs) like the wheat board declared illegal under the rules of the new World Trade Organization.
Oleson said it will be crucial for Canada to forge alliances with other countries that use state trading organizations to export or import agricultural commodities, such as the Australian Wheat Board, the New Zealand Dairy Board and the Japan Food Agency.
Difficult to find allies
Speaking to reporters later, he said it’s unclear whether the U.S. will be able to line up many allies in its effort to get rid of STEs, since so many countries have them in one form or another. And he expressed confidence that the wheat board will stand up to whatever assault the U.S. launches.
“I think it’s something we have to take very seriously, but very clearly the CWB is complying with the WTO and I think, other WTO countries will see that in the next round.”
The real issue is not whether a trading organization is a government or a private entity, but whether it is abiding by the rules and trading fairly. On that score, he says, the wheat board fares better than the Americans and Europeans, with their trade-distorting export subsidies.
Throw in towel
During a later question period, one NFU delegate said he fears Canadian trade bureaucrats aren’t strong supporters of the wheat board and won’t fight to save it in the next round of trade talks.
“I think they’ve already given away the wheat board in the WTO,” said Art Macklin of Debolt, Alta.
Oleson said he doesn’t believe that any such decision has been made and urged the NFU not to give up before the fight has begun.
“If you don’t go forward with the attitude that this is winnable and you will win it, you’ll lose every battle leading up to it.”
