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Canada and the United States enjoy the largest bilateral trading relationship in the world. It includes a mutually beneficial flow of agricultural products, driven by comparative advantage, geography, demographics, and other factors. Grains are just one component of this vast and diverse exchange.
- The United States and Canada are the world's largest and second-largest wheat exporters. U.S. wheat production between 1996-97 and 1998-99 averaged 66.3 million tonnes annually while Canadian wheat production averaged 26.1 million tonnes over the same period.
- The U.S. durum crop was insufficient to meet its domestic demand in 15 out of the last 15 years. (www.grainnet.com)
- Canadian wheat fills a market niche in the United States. Blending of Canadian and U.S. wheat by U.S. millers adds value to their operations by softening the variations in U.S. wheat supplies and enhancing flour performance.
- The U.S. Department of Agriculture concluded that "the geography of wheat production and use in North America and basic economics indicate that some Canadian wheat is well placed to supply U.S. centres." (Agricultural Outlook, June-July 1999)
- U.S. millers import Canadian wheat with guaranteed quality characteristics and blend it with U.S. wheat to achieve desired results.
- International Trade Commission (ITC) reported that in its five year study of wheat purchase contracts, U.S. millers paid higher prices for wheat from Canada in 59 of the 60 months.(www.grainnet.com)
- The severe drought in both the U.S. and Canada this year highlights the necessity of having access to the entire North American crop.
- Since 1990 there have been nine U.S. investigations and none have concluded or alleged any wrongdoing by the Canadian Wheat Board in terms of unfair subsidies or violation of international trade agreements. (previous cases)
