Canada Braces for Influx of Wheat from the US Free-Trade Provision Likely to Kick in Soon; Canadians Are Wary

By Scott Pendleton, writer of The Christian Science Monitor | The Christian Science Monitor, April 9, 1991 | Go to article overview

Canada Braces for Influx of Wheat from the US Free-Trade Provision Likely to Kick in Soon; Canadians Are Wary


Scott Pendleton, writer of The Christian Science Monitor, The Christian Science Monitor


CANADA, the world's second leading wheat exporter, faces the imminent and unwelcome prospect of wheat imports from the United States.

This is the latest complication arising from the free-trade agreement between the US and Canada, which began to take effect at the start of 1989.

Canada's decades-old barrier to imported wheat could be removed as early as next month. This would allow low-cost imports of US wheat, flour, and baked goods to engage Canada's own production in a costly battle for market share, adding another burden to the country's already struggling agriculture sector.

"Maybe we should look for a way to get out" of the free-trade agreement, says Charlie Swanson, president of the Manitoba Pool Elevators, a grain-elevator cooperative.

Wheat provides one-third of Canada's farm cash receipts. Farmers there grow five times as much as their domestic market can use. The rest goes to the international market.

The world's granaries, however, are bursting. Prices have plummeted. In the US, the January wheat price average was the lowest in 19 years.

But trouble for Canadian farmers started in 1985, when the US began subsidizing exports in answer to European export subsidies that were driving world prices down. The export subsidy issue has helped stall a new round of trade negotiations under the General Agreement on Tariffs and Trade.

In Saskatchewan, where two-thirds of Canada's wheat is grown, farm income has plunged 80 percent since 1985. One in five farmers in the province is in danger of foreclosure, says Verna Mitura, an economist at the Saskatchewan Wheat Pool.

"I wouldn't view (wheat imports) as the final disaster," says Mr. Swanson, "but one more thorn in the side of Canadian farmers."

When it signed the free-trade agreement in 1988, Ottawa was wary of competition from US grain, which historically had received a 20 percent greater subsidy. So it retained the right to require import licenses on US wheat, flour, and baked wheat products.

"Not one license has been granted. Not one grain of US wheat has gone to Canada since free trade was signed," growls Susan Miller of US Wheat Associates, the industry's export-development arm. Canada did allow imports of $10.8 million worth of products like crackers and noodles last year, up from $6 million in 1989.

In contrast, Canadian wheat and products have always had free access to the US market. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Canada Braces for Influx of Wheat from the US Free-Trade Provision Likely to Kick in Soon; Canadians Are Wary
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.