The Alberta Wheat Commission (AWC) has urged NAFTA negotiators to address inequity in the wheat industry.

For years, U.S. wheat has hasn't qualified for a Canadian Grain Commission grade when delivered to Canadian elevators.

General Manager of the Alberta Wheat Commission, Tom Steve, says they have urged NAFTA negotiators to address this issue.

"We believe that it's simply a matter of addressing a trade irritant that the Americans have long held. It's a little bit unfair that their wheat does not have the same access to our market as we have to theirs."

Since the end of the Canadian Wheat Board, Canada has annually exported between 2.5 to 3 million tonnes of wheat to the U.S., while American wheat coming to Canada annually is only 53 tonnes.

Steve says, it's an interesting subplot in the North American Free Trade Agreement negotiations.

"It's a long standing issue with U.S. wheat farmers in Montana, and North Dakota, that they can't receive a Canadian grade when it comes into a Canadian handling system. So, in the NAFTA discussions that has been raised, and from our perspective, we think it's an issue which should be addressed."

The AWC is pushing this change, since it won't result in large amounts of American wheat flowing into Canada.

"We don't need high volumes of American wheat. The United States market on the other hand, needs Canadian wheat, because of the population. Also, the exchange rates for the most part are favorable to Canadian farmers selling into the U.S. market. They're not so favorable, with the state of our dollar, coming north of the border."

Steve says, assigning a grade to U.S. wheat would only apply to U.S. varieties registered in Canada.

 

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