WASHINGTON, D.C. -ÊCanada is still a lightning rod for American farmers’ discontent, but the United States government and farm group officials seem to be willing to work things out peacefully.
U.S. agriculture secretary Dan Glickman and special trade representative Charlene Barshefsky told agricultural journalists at a conference here that recent trade agreements with Canada prove trade wars can be avoided.
“I think the Canada agreement demonstrates that these kinds of bilateral approaches do pay off, that we can improve on what we have,” said Barshefsky about the December Washington-Ottawa deal that allows U.S. wheat into the Canadian rail system and eases border controls on U.S. hogs. At the same time about 40,000 U.S. feeder cattle have been sent to Canadian feedlots.
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Since the agreement was signed, following U.S. farmer protests along the Canada-U.S. border last fall, more than 130,000 tonnes of wheat have flowed over Canadian rail lines, and Canada has recognized 14 states as free of karnal bunt.
“We expect to see a lot more grain move north through the Canadian rail system.
“This agreement is really making a tremendous difference already,” said Barshefsky.
Glickman said the December agreement has been a success.
“It is important that we maintain a strong dialogue with Canada to head off disagreements before they erupt into major conflicts.”
U.S. government officials tended to portray relations with Canada as generally good, but with some areas of disagreement. They saved their ammunition for attacks on the European Union.
But American producer groups seem more annoyed with Canadian farmers.
Tom Buis, of the U.S. National Farmers Union, said American farmers are annoyed to see Canadian agricultural goods flowing into their markets when the Canadian border is closed to them.
“The reason farmers and ranchers are becoming more protectionist is because some trade agreements are not working to their benefit, and it makes them doubt the future of all trade agreements,” said Buis.
Al Tank, of the National Pork Producers Council, said the December agreement with Canada has not helped U.S. pig farmers.
“Today that protocol does not work,” said Tank. “It is flawed. It will not allow one pig to move.”
Trade barriers
He said unreasonable border requirements, such as eartagging every U.S. pig coming into Canada, are non-tariff trade barriers.
He said U.S. producers think Canadian pigs flooding to American packers in 1998 drove down prices. But he said border tensions could evaporate once the Brandon, Man., Maple Leaf slaughter plant opens, so long as Canada gets rid of the obstacles that have stopped U.S. pigs from getting to Canadian packers.
“With that we could have handled the hogs that were produced in North America in 1998 and into the future,” said Tank.
U.S. Department of Agriculture chief economist Keith Collins did not back Tank’s claim that Canadian pigs drove down American pig prices last year.
“They probably had some factor, but it’s fairly modest,” said Collins. “We’re talking about four million hogs a year imported from Canada, out of about 100 million hogs that were slaughtered.”
Canadian embassy officials played the same tune.
Deputy head of mission Doug Waddell said Canadian hogs did not flood the U.S. market. But he admitted Canadian regulations on hog imports are not working: “There is an issue there. It is being addressed.”
He said Canadian and U.S. officials should be able to make live hog imports easier by the time the Brandon plant opens in late 1999.
Waddell tried to impress agricultural journalists with the successes of free trade, rather than the present flashpoints.
“It’s a two-way trade deal that works.”
