Wheat Wars. With Friends Like This... CBA Annual Meeting Winnipeg, Mb. August 17, 2004 J. E. McLandress General Counsel, Canadian Wheat Board. Introduction. “All politics is local...” -- Lyndon B. Johnson … and so is all trade policy. -- John Jackson
With Friends Like This...
CBA Annual Meeting
Winnipeg, Mb.August 17, 2004
J. E. McLandress
General Counsel, Canadian Wheat Board
“All politics is local...”
-- Lyndon B. Johnson
… and so is all trade policy.
-- John Jackson
Q: What drives the U.S. fixation on the CWB?
A: “Ignorance and xenophobia.”
-- Former aide to Governor of Montana
“… market and provide quality products and services in order to maximize value to our owners, western Canadian grain farmers.”
Total = 18 - 22 million tonnes of grain.
CWB 101: Export routes
CWB 101: Major customers 2003-04
Saudi Arabia (f) 561
Canada 2 200
USA (m) 414
China 1 800
Japan 1 029
China (m) 369
Canada (m) 360
Japan (f) 259
f = feed barley; m = malting barley
*In total 16. 3 million tonnes were sold to customers in 71 countries/regions.
The Global Market: Major Exporters
* five-year average from 1999-00 to 2003-04
* Gross sales in U.S. dollars
** Net sales in U.S. dollars
*** 2001-02figures due to 02-03 droughtSources: Annual reports, company Web sites
-- U.S. Senator Byron Dorgan to U.S. ITC, Sept. 4, 2003
--Jack Dalrymple, Lt.. Governor, N. Dakota to U.S. ITC, Sept. 4, 2003
“Article XVII (1): State Trading Enterprises
(a) Each contracting party undertakes that if it establishes or maintains a Stateenterprise, wherever located, or grants to any enterprise, formally or in effect, exclusive or special privileges,* such enterprise shall, in its purchases or sales involving either imports or exports, act in a manner consistent with the general principles of non-discriminatory treatment prescribed in this Agreement for governmental measures affecting imports or exports by private traders.
(b) The provisions of sub-paragraph (a) of this paragraph shall be understood to require that such enterprises shall, having due regard to the other provisions of this Agreement, make any such purchases or sales solely in accordance with commercial considerations,* including price, quality, availability, marketability, transportation and other conditions of purchase or sale, and shall afford the enterprises of the other contracting parties adequate opportunity, in accordance with customary business practice, to compete for participation in such purchases or sales.
(c) No contracting party shall prevent any enterprise (whether or not an enterprise described in sub-paragraph (a) of this paragraph) under its jurisdiction from acting in accordance with the principles of sub-paragraphs (a) and (b) of this paragraph.
Article III (and TRIMs)
“18.The following will be eliminated by the end date to be agreed:
Trade distorting practices with respect to exporting STEs including eliminating export subsidies provided to or by them, government financing, and the underwriting of losses. The issue of the future use of monopoly powers will be subject to further negotiation.”
The Lexus and the Olive Tree -- Thomas Friedman
Our founding ideas, our institutions, and the experience of building our two nations [Canada & the U.S.] have been very different; one by conquest, the other by compromise.”
Fire and Ice -- Michael Adams