July 27, 2005 Wednesday 3:27 AM EST
338 words
CANADA MUST DROP UNFAIR TRADE SUBSIDY, SEN. CONRAD SAYS
US Fed News
WASHINGTON
The office of Sen. Kent Conrad, D-N.D., issued the following press release:
As cattle trade resumes with Canada, Sen. Kent Conrad today urged the Department of Agriculture to take action to curtail an unfair subsidy of Canadian exports to the U.S.
"I write to urge you to take immediate action regarding subsidies of Canadian cattle that put American ranchers at an unfair disadvantage," Senator Conrad writes in his letter to Secretary of Agriculture Michael Johanns.
In response to USDA actions to protect the U.S. cattle herd from "mad cow" disease, the Canadian government instituted a $200 per head subsidy payment to Canadian cattle producers. Now that the border has been re-opened to Canadian cattle and beef imports, Senator Conrad believes these payments constitute an unfair trade subsidy of Canadian exports to the U.S. While the subsidy program was suspended earlier this month, Senator Conrad is concerned with the impact of the subsidies on herds of cattle now being exported to the U.S.
"There can be little question that the ongoing effects of these subsidies are contributing to the drop in prices experienced by U.S. cattle producers since the border was re-opened," Senator Conrad writes. "I cannot fathom why USDA did not insist that the ongoing benefits of this subsidy of Canadian cattle be removed before we allowed a resumption of beef and cattle imports."
In the letter to Johanns, Senator Conrad urges the USDA to demand that Canada completely dismantle the subsidy program before any additional Canadian cattle are sold in the U.S. If Canada fails to discontinue the subsidy program, Senator Conrad wants the Department of Commerce to impose tariffs that offset the benefits to Canadian producers benefiting from the subsidies. In addition, Senator Conrad is calling for the U.S. Trade Representative to investigate whether the Canadian subsidies violate World Trade Organization rules.
To Read the letter, visit: http://conrad.senate.gov/issues/statements/agriculture/050726_JohannsLetter.pdf