CHANGING CANADIAN GRAINS POLICIES: IMPLICATIONS FOR MONTANA'S GRAIN INDUSTRY

In Canada many changes have been made, and more are pending, to their grain transportation policies. This package of policy changes has two offsetting impacts on freight rates for Canadian grain producers. The removal of transportation subsidies on grain for export offshore has roughly doubled the cost of transporting grain for the Canadian producer. In addition, the change in pooling points will increase freight rates even more for producers in the eastern part of the prairies. Whether federally owned grain hopper cars are sold to the railways, or to an association of Canadian producers, the cost of the sale is likely to be born by producers through increased freight rates over a number of years. In addition, Canadian producers will bear the cost of investing in new cars, a cost that was previously born by the government. The combined impact of all of these changes is to more than double freight rates for producers in the western part of the Prairies, with larger freight rate increases for eastern Prairie producers. A number of other policy changes including rail line abandonment and car allocation procedures, and the privatization of CN railway, are likely to increase the responsiveness and efficiency of the rail system, and to reduce freight costs over the medium to long run. Changes in the elevator system, port privatization and the construction of high throughput country and terminal elevators are likely to increase the efficiency of the grain handling system. In addition, if the correct incentives for investment in grain hopper cars are adopted, it is possible that the shortage of hopper cars that has occurred in the past might be eased, further increasing the efficiency of the delivery system. The increased cost of exporting to offshore markets has increased the economic incentive for Canadian producers and grain companies to export to the U.S. market. However, due to control of exports by the Canadian Wheat Board, and their concern over the political consequences of large flows of grain to the U.S., those exports may not occur. The uncertainty surrounding the Wheat Board's actions may make it difficult for grain handling companies to anticipate trade flows and make adjustments to the infrastructure in the United States needed to accommodate increased grain flows. The large increase in freight rates occurred when grain prices were at high levels, dampening the impact of increased freight rates on Canadian producers. If all other factors remain equal, increased costs of that size are likely to result in a shift in the production patterns on the Prairies. The extent of adjustment will depend on the production alternatives facing Prairie producers. The large increase in freight rates prompted Canadian transportation specialists to re-examine the feasibility of transshipment of Canadian grain through U.S. ports. Shipping Prairie grain through Pacific North West ports was not found to be cost effective at this time. While the cost of shipping through the Gulf was found to be comparable to shipping through Canadian ports, institutional constraints are likely to prevent substantial transshipment. Some policy changes are likely to increase the viability of the Canadian rail transportation and handling and reduce the cost of shipping over time. However, it seems unlikely that these efficiency improvements will fully offset the large increase in transportation costs that Canadian grain producers have just experienced. This means that the increased economic incentive for some Canadian producers to ship to the U.S. market, compared to offshore markets, is likely to remain.trade, Canada wheat, Montana wheat, grain policies, Agricultural and Food Policy, F1,

MOVING TOWARD A SINGLE MARKET IS HARD: TRADE TENSIONS IN THE CANADIAN-U.S. CATTLE AND BEEF MARKETS

SPS (sanitary and phytosanitary agreement), technical barriers, U.S. cattle and beef trade, Canada cattle and beef, International Relations/Trade, F1,

ALTERNATIVES TO CURRENT TRADE REMEDY LAW WITHIN NAFTA

Economists have long criticized anti-dumping and countervailing duty processes. Analysis of current AD and CVD processes indicates shortcomings compared to a system of dispute resolution. Potential changes to current practices should first consider which of many possible goals the changes are trying to achieve. Both tweaking the current system and introduction of new processes are explored. It is proposed that consultations and good offices, such as used in the dispute resolution system of the World Trade Organization, should be considered.International Relations/Trade,

LOOKING TO THE FUTURE: CONFLICT AVOIDANCE AND RESOLUTION IN NAFTA'S AGRICULTURAL TRADE

trade disputes, trade remedy law, agricultural trade, NAFTA, beef industry, International Relations/Trade,

PREVALENCE AND REFORM OF STATE TRADING IMPORTERS IN WORLD GRAIN MARKETS

state trading enterprises, agricultural trade, world grain markets, International Relations/Trade, F1,

Options for World Trade Organization Involvement in Food Aid

WTO members have presented diverse positions on food aid issues to the current round of negotiations on agriculture. Some members desire increased disciplines on food aid, while others are adamant that the WTO needs to fulfill past promises and meet the current need to increase the food security of developing countries. Underlying this debate are questions about the role of the WTO in food aid issues. It is proposed that a new, more cohesive institution for food aid be adopted to partner with the WTO.agricultural trade, food aid, food security, WTO negotiations on agriculture, Food Security and Poverty, International Relations/Trade,

The Antidumping Negotiations: Proposals, Positions and Antidumping Profiles

Negotiations over the rules governing the use of antidumping (AD) duties are occurring in both the World Trade Organization and the Free Trade Area of the Americas. Unfortunately, the goal of the negotiations is unclear, as some governments want to restrict the use of antidumping while others seek to maintain the ability of national governments to use antidumping measures. We hypothesize that members who desire to preserve the use of antidumping are active in initiating suits. To explore this hypothesis, we examine the positions taken by major actors in the negotiations, and their antidumping profiles. An antidumping profile includes data on a member's AD actions, including investigations and measures the member initiates, as well as investigations and measures against the member's exports.antidumping, FTAA negotiations, WTO negotiations, International Relations/Trade,

WHEAT-IMPORTING STATE TRADING ENTERPRISES: IMPACTS ON THE WORLD WHEAT MARKET

The U.S. is seeking further disciplines on STEs in upcoming WTO negotiations on agriculture. The prevalence and reform of state trading among wheat importers is examined. Behavior investigated across countries and over time includes domestic price stabilization, world price transmission, import levels and sources, and grain quality.International Relations/Trade,

Disconnections in US and EU Agricultural Policy and Trade Negotiations: A Transaction Cost Politics Approach

This article investigates aspects of the institutions and decision making processes in the United States and the European Union that affect the coordination of domestic farm programs and trade negotiations for agriculture in each entity. We explore how current institutions and processes contribute to a level of incoherence - or lack of coordination - between domestic farm programs and trade negotiations in the United States. Constructs from transaction cost politics with an emphasis on the decision to delegate authority from the principal to an agent are used to understand how institutional processes affect the coordination of domestic legislation.This article investigates aspects of the institutions and decision making processes in the United States and the European Union that affect the coordination of domestic farm programs and trade negotiations for agriculture in each entity. We explore how current institutions and processes contribute to a level of incoherence - or lack of coordination - between domestic farm programs and trade negotiations in the United States. Constructs from transaction cost politics with an emphasis on the decision to delegate authority from the principal to an agent are used to understand how institutional processes affect the coordination of domestic legislation., Agribusiness, Agricultural and Food Policy, Agricultural Finance, Crop Production/Industries, Farm Management, Political Economy,