WASHINGTON, D.C. - CONGRESSMAN BOB SMITH (R-OR), CHAIRMAN
OF THE HOUSE COMMITTEE ON AGRICULTURE, TODAY APPLAUDED CANADA'S
DECISION TO DROP RESTRICTIONS PROHIBITING THE TRANSSHIPMENT OF
U.S. DURUM WHEAT THROUGH ST. LAWRENCE SEAWAY FACILITIES, SHIPMENTS
PREVIOUSLY PROHIBITED BY CONCERNS OVER KARNAL BUNT FUNGUS.
Chairman Smith and five other members of the U.S. House of Representatives
had raised the issue with Canadian officials earlier this week,
as the Committee on Agriculture, on a trade mission to Canada,
continued Smith's emphasis on reducing barriers to American farm
products and encouraging agricultural trade. The decision's timing
will allow for the movement of durum wheat in the 1997 spring
opening of the St. Lawrence Seaway, allowing U.S. durum wheat
producers to reduce costs up to two dollars per metric ton. Predictions
are that this will mean $1 million annually in wheat producers'
hands.
"I'm delighted by the Canadians' decision, which really
reflects both common sense and sound science. Our discussions
in Ottawa were very productive, and I am confident that this decision
will help pave the way for a better understanding, and greater
cooperation, on agricultural trade issues. Canada is our second
largest agricultural export market and we have a number of ongoing
trade concerns with them. It's important that we continue working
to resolve these issues face to face," Smith said.
Concerned by the discovery of Karnal bunt in the
southwestern United States, Canada prohibited the transshipment
of a number of grains through the St. Lawrence Seaway from the
states of Arizona, New Mexico, California, and Texas. In addition,
U.S. durum wheat was prohibited from entry, except for in-transit
movement (shipments through the Great Lakes/St. Lawrence Seaway
that do not stop), and to top off (add more wheat in route) in
1996.
The restriction hurt durum wheat exports to destinations normally
served through Atlantic ports, making it more expensive to buyers.
Normally, U.S. northern plains states could carry out a lakes-based
export program, even after the Great Lakes shipping season ends
in early to mid-December. Without access to the St. Lawrence
facilities, northern plains producers have faced significant losses
as their wheat has been shipped through higher priced Gulf port
routes during the winter season. In 1994/95, before the restrictions
were imposed, approximately 125,000 tons of durum wheat was transshipped
through Canadian facilities along the St. Lawrence.
In meetings this week with the Congressional delegation, the
Canadians expressed confidence in the Animal and Plant Health
Inspection Service's (APHIS) National Karnal bunt Survey, which
demonstrated the absence of Karnal bunt in prairie producing areas
of the northern plains.
Smith, who represents Oregon's Second Congressional District
in the U.S. House of Representatives, has made opening markets
for American agricultural exports the Agriculture Committee's
highest priority in the 105th Congress.