[Congressional Record Volume 140, Number 7 (Wednesday, February 2, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
[Congressional Record: February 2, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
UNFAIRLY SUBSIDIZED CANADIAN GRAIN
Mr. DORGAN. Mr. President, I would like to mention an issue that is
very important to me. I spoke about it on Monday here on the Senate
floor, and I will bring it up again now.
Tomorrow it will be somewhere close to 30 below, I am told, in the
northern part of North Dakota up near the Peace Garden. The Peace
Garden straddles the border that we share with Canada. At the Peace
Garden will gather a good many North Dakota farmers tomorrow. They will
demonstrate about an unfair trade practice that is sucking millions of
dollars, tens of millions, in fact hundreds of millions of dollars, out
of the pockets of our farmers.
What is this practice? A flood of grain has come across into this
country from Canada--a flood that is unfairly subsidized. Our farmers
cannot compete, and therefore they lose money. Ever since the United
States-Canada Free-Trade Agreement we have been unable to compete
against a flood of durum wheat.
Imports from Canada of unfairly subsidized durum wheat have rocketed
from zero shipments into our country to one fourth of our entire
domestic consumption. Durum wheat is ground into that flour that is in
pasta. Eighty percent of the Durum wheat that is produced in this
country is produced in North Dakota.
Tomorrow in the cold up near the Peace Gardens of North Dakota there
will be a demonstration as there was in Scoby, MT, 2 weeks ago.
These farmers are not talking about a problem that is theoretical.
They are protesting because they are losing money and losing big money.
This Government has a responsibility to fix a system of trade that is
now unfair.
Tomorrow I will introduce legislation that calls for three things.
First, my bill directs President Clinton to repeal the United States-
Canada Free-Trade Agreement and the requirement that a repeal be
preceded by a 6-month notification. Second, my bill will immediately
impose a 50-percent tariff on all grain shipped into this country from
Canada--barley, wheat, and Durum. Third, my bill requests the President
to negotiate with the Canadians on implementing three principles of
fair trade. And if he succeeds in these negotiations, he may nullify
the position of by bill that would repeal the United States-Canada
Free-Trade Agreement.
These three principles of fair trade are: First, requiring
transparency on all shipments into this country; second, elimination of
unfair Canadian subsidies specifically the subsidy of their railroads
that works to undercut our grain prices; and third, prohibition of
dumping, specifically the Canadian practice of selling in our market at
prices below the full acquisition and production cost of Canadian
grain.
Those are the three principles of the legislation I intend to
introduce tomorrow afternoon. Aggressive? Sure. Radical? Maybe.
Necessary? Absolutely.
I am flat sick and tired of seeing people sit on their hands when our
farmers lose money. If we do not have the courage to stand up and
demand fair trade on the part of our producers when they have to
compete against others, then we ought not pass any more trade bills. Do
not bring NAFTA to us. Do not bring GATT to us. I am just tired of
trade bills that shortchange our economic interests.
Our farmers deserve better than that. We have been fighting Canadian
grain for 5 years. My patience has just flat gone.
So for those who preach moderation, patience, and waiting, we have
done all that. We are tired of all that. Our trade problem is getting
worse not better. We are losing more money every day.
I hope that in the coming days we will find ways to say to the
administration, to say to Congress, to say to all those involved in
trade and agriculture that this must change. This must be fixed.
Mr. President, I yield the floor.
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