The National Potato Council Executive Committee unanimously approved a resolution requesting the Office of the United States Trade Representative (USTR) to launch a fact-finding investigation into Canadian trade practices surrounding potatoes. The resolution seeks a Section 332 investigation to address escalating concerns regarding British Columbia's efforts over 40 years to limit exports of potatoes to that province, along with concerns over other Canadian policies that may unfairly distort trade with the U.S.
To fulfill the organization's mission of supporting U.S. potato growers, the NPC Executive Committee determined that a federal investigation is necessary to establish a verified set of facts regarding the U.S.-Canada trading relationship.
The resolution addresses a longstanding measure imposed by the province of British Columbia against U.S. potato exports—primarily from Washington state—for more than 40 years. Canadian authorities recently significantly enhanced this measure and those trade-distorting changes have resulted in millions of dollars in reported losses for U.S. growers.
Unlike the United States, where only the federal government enforces trade policy, Canadian law permits individual provinces to bring and enforce such measures. This provincial measure raises questions regarding compliance with the spirit of the U.S.-Mexico-Canada Agreement (USMCA), which has previously encouraged negotiations resulting in benefits to agriculture.
The Executive Committee also addressed intensifying concerns from producers in North Dakota, Minnesota, and Michigan regarding Canadian competition. While exchange rates and freight advantages currently favor Canada, growers have expressed concerns that government subsidies may be artificially lowering Canadian production costs.
To address these issues, NPC will now officially request a Section 332 fact-finding investigation. If approved by the USTR, this inquiry will gather objective data regarding Canadian trade practices.
Source: www.nationalpotatocouncil.org
