SASKATCHEWAN TO FIGHT U.S. WHEAT AND DURUM RULING

Saskatchewan will continue to work with the federal government, other provinces and the Canadian Wheat Board (CWB) to fight a U.S. decision that would place a duty of 3.94 per cent on Western Canadian red spring and durum wheat exports from Canada.

The U.S. Department of Commerce today issued a preliminary determination that Canadian Wheat Board marketing practices and provincial grain transportation measures subsidize red spring and durum wheat exports into the U.S. Exporters of these products will be required to post bonds at the level of the duty on all exports to the U.S. market as of the date the finding is published, which is expected to take place next week. These bonds are held in trust pending the final outcome of the investigation later this fall.

"This is the tenth attempt by the U.S. to restrict access of Canadian wheat and durum exports since 1990 and I believe it will be the tenth time their accusations will fall flat," Intergovernmental Affairs Minister Eldon Lautermilch said. "Our exports are not subsidized, I am convinced that we will ultimately succeed in overturning this decision as the case moves forward to a final decision."

Specific details of the U.S. decision are not yet available.

"Saskatchewan is extremely disappointed that the U.S. government has taken this action. It is particularly questionable given the provisions in the new U.S. Farm Bill that provides massive domestic support and entrenches many protectionist policies to assist the U.S. agricultural sector," Deputy Premier and Agriculture, Food and Rural Revitalization Minister Clay Serby said. "We feel that the decision is flawed, politically motivated and not supported by the evidence."

This is only the preliminary countervail determination. Saskatchewan will continue working with the federal government, the CWB, and other provinces to have the decision reversed. If the U.S. upholds this ruling in its final determination later this fall then Saskatchewan will push the federal government to challenge the U.S. under NAFTA and the WTO.

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For More Information, Contact:

Anna Arneson GRAA Regina Phone: (306)787-8008

Scott Brown SAFRR Regina Phone: (306)787-4031