THE federal announcement to provide $680 million to Canadian beef producers suffering from the fallout of BSE is much needed and welcome regardless of timing.
The opposition Conservative party has complained that the aid was timed to boost Liberal fortunes in the next federal election, which is widely expected before summer.
It would be na•ve to think otherwise, but that should not automatically diminish the gesture from a government that preached fiscal restraint in its recent budget.
While the crisis is far from over, the aid announcement heralded a brighter dawn for many Canadian cattle producers. Ottawa’s latest program promises $80 per animal held by producers as of Dec. 23, not including mature bulls and cows. It was widely applauded by cattle industry groups and other farm organizations across Canada.
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But reports last week that the U.S.-based R-CALF group was looking into whether the aid amounts to an unfair subsidy conjures a dark cloud.
R-CALF consists of northern U.S. cattle producers who have long complained about the influx of Canadian cattle into the U.S. market.
They have filed trade challenges against Canada in the past and lost. Unfortunately, under American trading rules, penalties can be applied against a competitor at the mere mention of unfairness, no proof required. If the complaint is later proven unfounded the money is refunded, but by then many operators could be out of business.
It is time R-CALF members practised the fair play they preach so heartily.
The BSE aid is disaster assistance, plain and simple, and as such is compatible with international trade rules.
The ongoing irritation that R-CALF members display toward Canadian beef producers can perhaps be attributed to the rare position of these U.S. ranchers.
When U.S.-Canada relations are viewed in the elephant-mouse model, we usually see Canada as the mouse. But in the northern region of this continental beef economy, Alberta is far and away the dominant player. The elephant, if you will.
It’s time for R-CALF members to come to grips with this reality and accept that Canadian cattle and beef will be sold into U.S. markets. It is time they look for ways to compete fairly, instead of looking for false pretenses to keep the elephant fenced in.
As Canadians, we understand feelings of being overwhelmed by a huge tide of goods delivered into markets by a larger competitor living nearby.
But we also appreciate the value of long-term partnerships, friendships and trade fairness.
A trade challenge by R-CALF against Canada’s BSE aid package would undermine the relationships and spirit of trade that has, until recently, served the North American cattle economy well.
