47 



exports particularly to the Asian areas in jeopardy. I would hope 

 that you could visit with Mr. Wilson regarding the crow's nest rate 

 and a continued subsidy to Canadian products going to the Pacific 

 coast. 



Ambassador Kantor. We began those discussions. He was here 

 earlier. I have talked to him twice by phone. I am going there on 

 April 2. Those discussions — whether it be wheat or other prod- 

 ucts — are discussions that need to be held. He understands our 

 very grave concerns. 



Mr. Smith. Thank you. 



The Chairman. Mr. Ambassador, I apologize. I must leave. I will 

 leave you in good hands with our colleague, Mr. English, to preside. 

 I have to attend a very important meeting with two of my favorite 

 people, the Prime Minister of Ireland and the President of the 

 United States. We will be having a wee bit of Irish cheer. 



Mr. English [assuming chair]. Mr. Sarpalius. 



Mr. Sarpalius. Thank you, Mr. Chairman. 



I, too, want to commend you on your new position and look for- 

 ward to working with you as a member of this committee. 



Mr. Ambassador, could you elaborate a little more on the con- 

 cerns with the Canadian agreement regarding wheat where they 

 require and use certificates for all grains? 



It has been a problem with wheat producers. Could you address 

 that a little further? 



Ambassador Kantor. Let me just take that a little further. 



That is a problem. There is also a problem with the rail sub- 

 sidies, which was not addressed by the FTA. There is also a prob- 

 lem, as you know better than I, with the Canadian Wheat Board 

 and how they purchase wheat from Canadian farmers. The problem 

 of transparency has resulted in a huge growth in the sale and de- 

 livery of Durum wheat, especially, into the United States. It is 

 something we are very well aware of and about which we are very 

 sensitive and concerned in the most serious way. It will also affect 

 barley and Spring wheat as well. 



Unfortunately, in the FTA, those rail subsidies were left out of 

 the agreement, as you know. We had a chapter 19 panel under the 

 FTA which did not go forward with the action we had hoped they 

 would with regard to wheat, although they did allow us to go for- 

 ward with an audit to try to gain some transparency in what the 

 Canadian Wheat Board has been doing. 



Frankly, I don't believe that is enough. We are having discus- 

 sions now in the administration and I will be seeing Michael Wil- 

 son on April 2. We will try to move forward and try to get some 

 movement in this area. It is a difficult situation. I understand that 

 and we are very concerned. 



Mr. Sarpalius. Another concern I hear from a lot of my produc- 

 ers — I don't think this is just in my district. It is everywhere. One 

 of the biggest concerns with NAFTA is enforcement. What assur- 

 ances will we have that we won't see any back-door products com- 

 ing into Mexico and then in turn coming into this country? 



"What types of enforcement will Mexico be willing to give us to 

 see to it that this agreement does indeed hold true, as well as along 

 the border of Texas? 



