An opposition MP wants the federal government to demand compensation from Washington for more than two years of illegal tariffs on imports of Canadian spring wheat.
Liberal Wayne Easter says the United States should compensate the Canadian Wheat Board and farmers for lost sales and legal costs incurred fighting the tariff that was in place between August 2003 and February 2006.
The tariffs were declared illegal under the North American Free Trade Agreement in 2006 and in late October the U.S. Court of International Trade ruled that the tens of millions of dollars collected in tariffs must be returned.
Read Also
Final crop reports show strong yields, quality
Crops yielded above average across the Prairies this year, and quality is generally average to above-average.
Demand compensation
Easter said in a Nov. 6 interview and in an earlier letter to international trade minister Stockwell Day that the Conservative government should demand broader compensation than just the return of tariffs.
The tariff effectively reduced sales into the U.S. because it made sales unprofitable.
“We should challenge them full bore and we should be taking whatever course of action at whatever level we have to take to demand that lost profits for our agriculture industry should be paid for as well,” he said.
“Regardless whether (prime minister) Stephen Harper and company like or dislike the Canadian Wheat Board, this is an issue that affects primary producers on the ground, and it is an issue the Canadian government should be on.”
Easter said he was incensed by an attempt by Dow Chemical to use NAFTA to demand compensation from Canada for “potential lost future profits” as a result of Quebec restrictions on use of 2,4-D.
“Why are we not making those arguments in the agricultural sector against the United States?” he said.
“Maybe it would put a stop to the actions that are put forward as if they are trade and subsidy issues when it just is hidden protectionism on the part of the Americans. In every case, the Canadian Wheat Board has won.”
Easter said the re-elected Harper government could use this issue as a way to send a message to Washington and the incoming Democratic administration that Canada will, as American companies do, use trade rules to fight protectionism and demand compensation when it is ruled illegal.
“We might as well start on the right foot with the new administration,” he said.
“We might as well stand up and be counted for Canadian interests rather than just being wimps and allowing them to roll right over us.”
Day’s office did not immediately respond to the demand, which will be on Easter’s agenda when Parliament resumes Nov. 18.
