A proposal from North Dakota governor Edward Schafer that the U.S. and Canada combine in a wheat cartel to take on the world had heads shaking and tongues wagging in Canadian political circles last week.
Schafer said recently the Canadian Wheat Board could be the vehicle. Rather than competing with American grain producers by shipping south, it could act as an off-shore sales vehicle for both countries.
Wheat board minister Ralph Goodale told the House of Commons the idea might not work but was worth considering.
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“Quite frankly, the proposition that he made may border on the fringes of illegality but maybe it should be taken under advisement,” Goodale said during Question Period.
However, he embraced the underlying message of cross-border co-operation on grain trade issues. “That is a very positive thing.”
The issue also was raised at the Commons agriculture committee last week when Saskatchewan agriculture minister Eric Upshall appeared as a witness on the CWB.
He said the proposal should be evaluated with two questions in mind: Can Canadian quality assurance be maintained and “will it benefit Canadian farmers.”
MP attacks inspection system
Rookie Manitoba Progressive Conservative MP Rick Borotsik last week alleged the Canadian food inspection system is flawed.
He proposed a parliamentary investigation.
In a House of Commons statement, he leveled a rhetorical broadside at the Canadian Food Inspection Agency.
He said there have been reports that food imports “are not being inspected thoroughly enough” and the 1996 auditor general’s report warned about deficiencies in the system.
“It is time for the federal government to recognize that there are improvements which should be made to our food inspection,” said Borotsik. “The CFIA must take a stronger federal role in the area of food safety.”
Mountain of frozen meat
Meanwhile, Statistics Canada last week reported that inventories of frozen meat in storage in Canada are up sharply.
At the beginning of October, businesses had 39,213 tonnes of meat in storage, one-third higher than last year’s 29,228 tonnes.
Higher inventories could lower domestic prices.
Trade dispute panel proposed
An advisory committee to the North American Free Trade Agreement has suggested an industry-supported dispute resolution system be established to handle trade problems in the fruit and vegetable sector.
The proposed disputes resolution organization would be paid for by industry players in Canada, the United States and Mexico.
According to a Canadian announcement of the recommendation, supported by the government, this organization would “facilitate the prompt and effective resolution of private commercial disputes between companies involved in cross-border trade in fruits and vegetables.”
A commercial dispute-resolution system has been promoted by the Canadian Horticultural Council.
The three NAFTA governments would have to approve the proposal before it takes effect. It will first be considered this month at a NAFTA agricultural trade committee meeting in Washington, D.C.
