Trade dispute over Canadian beans drags on

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Published: March 13, 2003

CANCUN, Mexico – Six rail cars filled with Canadian beans have been sitting at the Mexican border for weeks, blocked from the country by what some have called a politically motivated ban.

The cars are tangible symbols of a trade dispute that is dragging on longer than anticipated.

It has frustrated the special crops industry and garnered the attention of prime minister Jean Chrétien, who recently raised the issue with his counterpart during a trip to Mexico.

The ban began on Jan. 24, when the Mexican equivalent of the Canadian Food Inspection Agency announced it would stop accepting beans from Canada or the United States for two weeks.

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Inspectors discovered a pest in a shipment of beans from the U.S. that is not native to the U.S. or Canada, leading Mexican authorities to believe the American beans had been mixed with inferior product from China and Peru.

“They wanted to hold all beans until they could find out who the bad players were,” said Kim O’Neil, head of the agriculture section at the Canadian Embassy in Mexico.

Canada was happy to comply with the temporary ban as long as six rail cars already en route would be accepted. The Mexicans agreed to those conditions but have not done so.

Six weeks later, the Canadian cars are still at the border, O’Neil told delegates attending the 17th annual Canadian Special Crops Association convention.

“It seems to be one stall after another and we have never received any satisfactory explanation as to why they are holding them up.”

She said Mexican officials told her privately there is no problem with the Canadian beans, but that doesn’t seem to matter.

“The reality is they’re breaking the rules. We have rules under NAFTA and they’re not complying with them.”

Don Sissons, director of the Manitoba Pulse Growers Association, said the ban sets a dangerous precedent. There is “huge potential” for bean exports to Mexico and he doesn’t want to see that jeopardized by non-tariff barriers.

“Unfortunately we’re caught up in some domestic politics within Mexico.”

Sissons was referring to farmer protests that have swept the country since the NAFTA agreement was fully implemented on Jan. 1, 2003. Free trade is unpopular with the country’s farmers, who are concerned they won’t be able to compete with the other two more developed NAFTA nations.

Sissons said increasing sales to Mexico is “critical” to developing the Canadian bean industry, so he was relieved to hear that this file has risen all the way to Chrétien’s desk.

“I don’t think it’s something that we can afford to allow to carry on because it sets a precedent that is destructive for us as producers.”

Beans are one of two crops still protected under the NAFTA agreement. Tariffs on most agricultural goods have been reduced to zero over the past 10 years. That won’t happen with beans until 2008.

About the author

Sean Pratt

Sean Pratt

Reporter/Analyst

Sean Pratt has been working at The Western Producer since 1993 after graduating from the University of Regina’s School of Journalism. Sean also has a Bachelor of Commerce degree from the University of Saskatchewan and worked in a bank for a few years before switching careers. Sean primarily writes markets and policy stories about the grain industry and has attended more than 100 conferences over the past three decades. He has received awards from the Canadian Farm Writers Federation, North American Agricultural Journalists and the American Agricultural Editors Association.

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