The North Dakota Wheat Commission has hired a lawyer and soon will challenge the marketing position of the Canadian Wheat Board, said commission chair Alan Lee last week.
Lee alleged the board’s trade distorting practices are giving it an unfair advantage in American and offshore markets for grain.
He would not disclose details of the challenge against the wheat board, other than to say it will be “a trade type action.”
Ellen Huber, a spokesperson for the commission, cited several grievances that the wheat commission has with the CWB, including the board’s monopoly over export grains and guaranteed initial payments to farmers.
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There is a lack of price transparency, said Huber, listing off the string of complaints.
As well, the commission claims that the CWB uses predatory pricing practices when selling grain into North American and offshore markets.
Expand complaint
While the CWB will be the main target of the commission’s trade challenge, Huber said last week that it “won’t necessarily limit it to the wheat board.”
Wheat board spokesperson Jim Pietryk dismissed allegations that the board is using unfair practices to undercut American grain producers.
He said the wheat board earns market share by providing quality and consistency to its customers.
Pietryk said it will be unfortunate if the commission does move ahead with its challenge, since farmers’ money will be spent defending against the allegations.
The CWB has undergone eight investigations during the past decade related to trade issues between Canada and the United States.
Each time rulings stated the board trades fairly and complies with North American and international trade rules, Pietryk said.
Ralph Goodale, minister responsible for the wheat board, said in a news release that the threatened trade action is a “phony charade” carried out for political reasons during an election year in the U.S.
