Cereals Canada: USMCA Puts U.S., Canada Growers on Equal Footing

Canadian wheat growers, continue to point out to their American brothers that USMCA includes a fix for U.S. wheat exports heading north.  Currently Canada has a practice of grading American wheat varieties as feed wheat when it crosses the border and is delivered to a Canadian elevator.

The National Association of Wheat Growers has actively lobbied for change, and this has been an issue with U.S. farm groups for some time.  The reality is that very little American wheat is delivered to Canadian elevators, due in large part to strength of the U.S. dollar.  And while it’s difficult to see how that would change, the President of Cereals Canada, Cam Dahl, said that U.S. grains, including wheat, delivered to Canadian elevators is addressed in the USMCA document.

“Legislation that will ensure that there’s equal treatment for Canadian and for U.S. wheat producers, when delivering to Canadian elevators, is actually before the Canadian parliament. It has been introduced in the House of Commons. It’s part of the package to ratify the recently negotiated Canada, U.S., Mexico trade agreement. When that legislation proceeds, the Canada Grain Act will be adjusted to ensure equal treatment on both sides of the border.”

Currently, ratification of USMCA is largely in a holding pattern in both the U.S. and in Canada.

Parliament has adjourned for its summer recess as Canada’s federal politicians gear up for an October election.

But Dahl says that if anything should break loose in D.C., he believes Ottawa would make some quick phone calls.

[CAM – 2]

“My personal view is that the government of Canada is looking to move lock-step with the U.S. Congress on ratification of the new trade agreement. We’re entering into election season here in Canada, but the indications are that if ratification is proceeding in the U.S., that the Canadian parliament will be recalled in order to pass the legislation needed to ratify the new trade agreement.”

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com