WINNIPEG (Staff) — The president of the Keystone Agricultural Producers hopes the U.S. takes no action against Canadian exports, but if it does, a quota would be less damaging to Manitoba farmers than a tariff on every tonne of grain entering the U.S.
Alan Ransom said he expects the volume of exports of Canadian grain into the U.S. to decline on its own next year with or without trade action.
The bulk of sales into that market this year have been feed wheat filling a gap left by last year’s reduction in U.S. corn production. As well, export subsidies used by the U.S. have made the domestic market unusually attractive. Ransom said those conditions are unlikely to continue.
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But although the volume of trade will decline, access to the U.S. market will become increasingly important to Manitoba farmers as freight rates increase their costs of exporting offshore, he said.
Ransom said neither side will win if U.S. protectionism results in an all-out trade war between the two countries. Many of the trucks hauling grain south are hauling feed products back, he said.
