US-Canada trade deal

04 December 1998

US-Canada trade deal

THE USA and Canada are expected to announce a trade agreement after months of feuding between the two countries.

Tensions have been heightened by plummeting prices for wheat and livestock on both sides of the border.

Farming groups in several border states such as North Dakota and Montana have threatened to launch new blockades against Canadian exports.

Several US states organised a blockade earlier this year.

The trade agreement could be announced today or Monday.

One measure likely to be adopted is for improved access to the Canadian rail system for US grain being moved through Canada for export from US west coast ports.

The two sides are also discussing a pilot programme to ease the entry into Canada of US wheat certified disease-free.

Canada has refused to discuss any volume restraints on exports to the USA of wheat or livestock.

• Financial Times 04/12/98 page 4