Monday, October 30, 2006

BS in the Wheatfields?

In his blog entry today Paul Samyn expresses his dismay that the Tories “leaked” their plans for the Canadian Wheat Board to those ugly Americans. Oddly enough, Mr. Samyn’s post on October 12, 2006 analyzes the Quebec ramifications of Harper’s plans to overhaul the CWB. So we knew for quite some time changes are coming. And what are these dastardly and decidedly diabolical leaks?

Midgie indicated the task force will make recommendations on the length of a transition period after which the CWB would fully lose its monopoly powers.

The task force report is also expected to offer recommendations on how the
CWB could acquire capital to make up for capital it expects to lose when
all wheat, barley and durum growers in western Canadian provinces do not
have to sell their grain through the CWB.

How deliciously evil. In other news, I am leaking info on the new Nine Inch Nails album. Prior to reading on, remember that you read it here first:

1) The album will have the words Nine, Inch and Nails somewhere on it.

2) There will be songs on the album.

3) Videos should also be forthcoming, probably based on a few of the album’s stronger songs.

4) Expect Trent Reznor to sing on it and play a few instruments as well.

I am now bracing myself for the inevitable lawsuit from the defunct Nothing Records as well as Samyn’s fury for my scoop. Paul – I could understand your indignation if the ACTUAL RECOMMENDATIONS THEMSELVES were leaked.

It looks like Harper isn’t as cozy with Bush as some would have us believe. All our largest trading partner gets as a preamble to an issue dramatically affecting US/Canada trade are some pithy hints that recommendations are coming. I wonder if all of Reg Alcock’s leaks to Paul Samyn were this innocuous or predictable.

It is interesting to note that one of the contentions of the U.S. as posted by Mr. Samyn himself is:

The U.S. government for years through the WTO has tried to eliminate the monopoly powers of the CWB, which it argues gives Canadian wheat growers the ability to underprice U.S. growers.

From the CWB Web site:

CWB is able to provide marketing clout As the sole marketer of the high quality wheat and barley grown in western Canada, the to individual farmers who benefit from higher returns. By selling together, western Canadian farmers are able to exert more power in the marketplace than they could if they were competing against each other.

So as champion of the farmers, the cartel known as the CWB uses a monopoly position for dumping? Either the US government or the CWB is making a flat-out erroneous claim. I hope that farmers get to the bottom of this to ensure that their needs are truly being addressed. Judging by all of the silly rhetoric, aided and abetted by the MSM, perhaps 54% of farmers are right to question who is looking out for their best interests.

4 Comments:

At 11:06 PM, Anonymous Anonymous said...

All that barley gives me the scoots.

 
At 7:52 AM, Blogger Unapologetic Ex-Winnipegger said...

Um - ok. My concerns about waste problems were in my Winnipeg Humane Society blog entry a few posts back...

 
At 8:13 AM, Anonymous Anonymous said...

Actually, the U.S. has taken this position in trade disputes with Canada, and has lost at least nine times when the dispute was resolved at either GATT or NAFTA.

Ever heard the expression, "united we stand, divided we fall?"

The Wheat Board maximizes return to Western Canadian Wheat Farmers by letting them act as a single supplier, so that they don't have to drop their prices in order to undercut their neighbour and drive him out of business in order to make a sale.

The Board has also put an emphasis on quality, so that customers - bread makers in the UK, pasta makers in italy, couscous makers in the middle eart and bakers in China can be assured of a standard, high-quality product.

The accusations of dumping, usually by North Dakota, are borne of American frustration that American mills and food processors were choosing Canadian wheat over American wheat. The Americans argued that Canadians were dumping: the truth was that Canadians were producing a superior product, and that's why Americans bought it.

 
At 10:04 AM, Blogger Unapologetic Ex-Winnipegger said...

What of that farmer (his name escapes me now) being jailed because he attempted to sell his crop at a higher price? That didn't strike me as an exercise in undercutting. One would expect higher prices in a monopoly or cartel scenario thereby negating any farmer's ability to achieve higher returns outside of the system.

I know the Americans resort to accusations of "dumping" as a stalling tactic during trade disputes. The point I was making is how could anybody make ANY case for same if the mandate of the CWB is to maximize returns for farmers? Surely any straw-man claims of dumping would have been easily refuted in any GATT, NAFTA or WTO discussions/forums.

 

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