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WASHINGTON —(AP)— The U.S. Commerce Department is expected to issue final rulings this week in North Dakota wheat farmers' trade complaint against Canada, setting the stage for the case's resolution. ``This is kind of the last step to get where we want to go,'' said Leland ``Judge'' Barth, marketing director for the North Dakota Wheat Commission. Comparing it to a football season, Barth said, ``this is probably like the NFC or AFC championship game.'' ``It's the final hurdle before ... the Super Bowl of the whole thing,'' Barth said. That last contest will be waged in front of the U.S. International Trade Commission, which is set to decide this fall whether preliminary tariffs imposed on Canadian wheat should be fixed. The trade investigation was prompted by petitions filed last year by the North Dakota Wheat Commission, the U.S. Durum Growers Association and the Durum Growers Trade Action Committee. The farm groups contend the Canadian government unfairly subsidizes the Canadian Wheat Board through a number of measures, including guarantees of the board's borrowing, credit sales to foreign buyers and favorable shipping policies. Canadian officials reject the allegations and say they comply with global trade rules and treaties. The U.S. wheat groups ``just have missed the boat on so many aspects of how wheat is traded in the world that it's kind of remarkable,'' said Jim McLandress, general counsel for the Winnipeg, Man.-based board, which controls exports from Canada's western provinces. In November, the International Trade Commission said there is evidence Canadian practices drive down the price of wheat grown in the United States. That ruling triggered the Commerce Department review; in March, the department issued a preliminary ruling that said tariffs may be needed to counter Canadian wheat subsidies. A second preliminary ruling, issued in May, set additional tariffs after the department said Canada dumps wheat on the U.S. market at prices lower than what it costs to grow. Together, the preliminary rulings set border taxes of 12 percent on durum, a wheat variety used in pasta, and 10 percent on hard red spring wheat, used to make bakery flour. The final rulings could raise or lower those preliminary tariffs, Barth said. The department has not yet addressed whether it's wrong for Canada to guarantee some initial payments made to wheat farmers. ``They could rule on that, which could further add to the duties that are in place,'' Barth said. The Canadians will press for all border taxes to be dropped. ``I don't think that there's any basis for tariffs at all,'' McLandress said. If the final Commerce Department decisions again favor the U.S. farmers, the case will go back to the International Trade Commission, which has scheduled a public hearing on Sept. 4 to hear evidence from both sides of the dispute. North Dakota farmers will travel to Washington and testify at the hearing, Barth said. The commission's final decision is scheduled to be issued on Oct. 14. Separately, the World Trade Organization has convened a panel to review Canadian wheat trade practices after the United States brought a formal complaint before it. |
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