The National Association of Wheat Growers (NAWG) has recommended ways to improve the North American Free Trade Agreement as negotiations between the United States, Mexico, and Canada get underway in the coming weeks.
At the same time, NAWG urges lawmakers to “do no harm” regarding cross border wheat trade between the three countries.
“The wheat industry can benefit from some enhancements to NAFTA. A good place to begin are the sanitary and phytosanitary (SPS) rules that the three countries already agreed to as part of the Trans-Pacific Partnership (TPP) negotiations,” NAWG CEO Chandler Goule said. “With the global push to reduce tariffs, non-tariff barriers (particularly SPS barriers) to trade are becoming increasingly common. It is critical that the sanitary and phytosanitary (SPS) measures in any agreement are transparent and based on scientific principles.”
Another area that could be improved is Canada’s grading system for U.S. wheat, Goule stated.
“Canadian wheat can freely enter U.S. elevators and receive a grade commensurate to its quality while U.S. wheat brought to Canadian elevators is automatically downgraded to a ‘feed wheat’ grade or the equivalent,” he said. “This glaring difference is highly concerning and disenfranchises farmers near the border who can’t take advantage of price premiums at Canadian elevators when they occur.”
Goule said NAFTA can provide opportunities for both U.S. wheat buyers and wheat producers if negotiated correctly.
“NAWG will continue to work with the Administration to ensure wheat is present during the renegotiation discussions and that the new terms improve conditions for wheat farmers,” he added.