Canadian Ambassador Says Wheat Retaliation Unfounded

October 6, 1999

Canada's ambassador to the United States, Raymond Cretien, says there is no reason why the United States should take any negative trade action against his country over wheat exports to the United States. Any such action will be "perceived (to be) extremely negative" by the Canadians.

Cretien says requests have been made to U.S. Trade Representative Charlene Barshefsky to "self-initiate" a trade complaint against Canada because of unfair wheat exports to the United States.

"Canadian wheat shipments to the United States are market driven, are fairly traded and resond to the demands of U.S. processors for high quality product," says Cretien. "There is, therefore, no justification for trade action, self-initiated or otherwise."

The statements came in a letter to White House Chief of Staff John Podesta. Chretien also hinted strongly that Canada might balk at cooperating with the United States on other trade issues if USTR followed through with a complaint.

"Any self-initiated action would be perceived extremely negatively in the context of our bilateral agricultural trade relationship," he continues. "It would also send an entirely wrong signal to the broader trade community on the eve of the Seattle World Trade Organization ministerial where the United States is looking for Canada's cooperation on a range of agricultural trade issues.

"We are making substantial progress in implementing last December's record of understanding, including resolving issues to facilitate access for U.S. wheat to Canada, such as the in-transit shipment of U.S. grain. While we remain committed to continuing to enhance market access for U.S. exports, we urge you to resist...blatant call(s) for protectionism."