Canadian Truck Inspections
Halted To Await Trade Talks

HELENA, Mont. —(AP)— Western governors furious about Canadian trade practices they say interfere with U.S. grain and cattle markets have agreed to suspend stiff inspection rules while the countries negotiate trade terms.

"The increased surveillance worked," Wyoming Gov. Jim Geringer said last Friday. "We, as Western governors, have sent a message that's been heard loud and clear by Canadian and American trade officials."

Last month, seven states adopted tough new inspection protocols for imports of Canadian farm products to protest what U.S. farmers say are unfair testing and quarantine requirements imposed on commodities shipped to Canada.

The frustration also led to blockades and rallies by U.S. farmers last week at border crossings in Montana and North Dakota.

Canada complained to international trade organizations about the stepped-up inspections and the Clinton administration responded last week by asking Canada for the talks.

The discussions are expected to start this week but no location had been set Friday, and there is no deadline for concluding them.

In a letter to U.S. trade negotiator Peter Scher, Montana Gov. Marc Racicot said he and the governors of Idaho, Minnesota, Nebraska, North Dakota, South Dakota and Wyoming will halt the intensive enforcement campaign — provided the trade talks address the complaints.

If talks break down or do not proceed with "due diligence," the states will consider reviving the 24-hour inspections of trucks carrying agricultural products, Racicot said.

Montana's inspections ended at midnight Friday. Idaho Gov. Philip Batt said the truck checks in Idaho would cease Monday. North Dakota Gov. Ed Schafer said he would decide Monday when to halt inspections.

The governors also have complained about the subsidies provided Canadian wheat growers and ranchers, and the lack of information about grain pricing in Canada.

"Canadians are our friends and that country is one of our staunchest allies, but we will not put our farmers at a disadvantage regarding fair trade," Batt said.

"The intensity of this issue is growing," U.S. Agriculture Secretary Dan Glickamn said after his meeting last week with the governors of North Dakota and Montana and several lawmakers. "It's our obligation to get these issues resolved to ensure fair and reciprocal treatment on cross-border traffic."

American farmers have a long list of gripes about Canadian trade that have been exacerbated by this year's steep decline in grain prices. Among their allegations are that Canadian commodities are unfairly subsidized and are treated with pesticides banned in the United States.

Glickman called the complaints "irritants." Montana Gov. Marc Racicot said U.S. farmers are "getting nibbled to death by ducks."

"If they've been cheating, you have to blow the whistle and have a penalty shot in this game of trade," South Dakota Gov. Bill Janklow said Tuesday.

Canada threatened retaliation for the stepped-up inspections and is seeking action under the North American Free Trade Agreement and through the World Trade Organization, which regulates international trade. U.S. Trade Representative Charlene Barshefsky responded by telling Canada to "take decisive action to level the playing field."

Peter Scher, who will lead the Clinton administration's efforts to resolve the complaints, said there were both "legitimate concerns" and "misconceptions" about U.S.-Canada trade.

The governors were asked to provide a full list of the complaints, and then the administration "will figure out which one of these irritants we can resolve," said Scher, who is President Clinton's special trade ambassador for agriculture.

Rep. Earl Pomeroy, D-N.D., said last week’s meeting ensured that the administration and governors are following a coordinated strategy. "We're all on the same page," he said after the meeting with Glickman.

But Sen. Kent Conrad, D-N.D., said the disputes cannot be resolved without reopening the 1988 agreement that governs U.S.-Canada trade. He believes Canada was unfairly allowed to keep agricultural subsidies that let its farmers undercut U.S. producers.

"We have to have a means of fixing mistakes in previous agreements; otherwise we will live with them for the life of those agreements, and that's forever," Conrad said.

Minnesota Agriculture Commissioner Gene Hugoson said he understood why U.S. farmers are upset.

"When Canadian farmers can get half again as much for their grain by bringing it across the border, what farmer wouldn't be doing something like that?

"All it does is sort of rub salt into the wounds of the American farmers as they're looking and feeling frustrated by having to watch this sort of action happen."