Last week’s Canada-U.S. agreement on agricultural trade is good news for Canadian producers, even though it may mean more American grain and livestock entering Canada.
U.S. farmers will be able to deliver grain to selected elevators near the border, and U.S. swine for slaughter will not have to face the same testing and quarantine requirements as breeding animals.
Such concessions are minor compared with the value of keeping the U.S. border open for Canadian grain and livestock.
The two nations specifically pledged not to use health regulations as trade barriers, as several state governments did earlier this fall.
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Reinforcing that principle, they also agreed on various technical measures aimed at harmonizing regulations on pesticides and veterinary drugs.
It’s also encouraging that the agreement was endorsed by the Canadian Federation of Agriculture, the American Farm Bureau Federation, and U.S. Wheat Growers.
Dean Kleckner, Farm Bureau president, declared in a news release:
“Given the success of these negotiations, an imminent blockade of U.S./Canadian ports of entry is totally unwarranted and would betray the best interests and will of all of America’s farmers. Canada is the United States’ primary trading partner, accounting for billions in U.S. farm exports annually.
“At a time when regions of the world are buying fewer of our commodities due to economic turmoil, the last thing U.S. farmers can afford is an irresponsible action that would shut down, even temporarily, trade with one of our best customers.”
The title of the CFA’s news release said it all: “Congratulations on a job well done.”
One thing the agreement did not do, however, is settle the issue of the Canadian Wheat Board.
U.S. officials made it clear their long-term agenda is still to eliminate all state trading enterprises, including the Canadian Wheat Board.
To check the prices being charged by the board, the U.S. customs office will be collecting more detailed information on prices being paid by U.S. importers of grain.
While American officials pledged to respect commercial confidences, the special scrutiny is still ominous.
On the other hand, it might be useful if the U.S. government determines, one more time, that the wheat board is not dumping grain into the market at low prices, as some of the board’s more extreme critics accuse it of doing. Perhaps then the myth will finally die.
