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have indicated, particularly relative to agricultural issues, show 

 you to be an extremely quick study. I believe as our lawyer you will 

 represent us well in the trade talks. 



I have had a concern, representing North Dakota, that agri- 

 culture is about the furthest thing from the minds of our trade ne- 

 gotiators; that agriculture was an area papered over in an effort to 

 get an agreement. 



This has caused some serious problems and I would just point to 

 the Canadian Free-Trade Agreement loopholes that have already 

 been mentioned. It's very harmful to our Durum growers and other 

 grain growers. 



There is linkage to NAFTA to the extent that that loophole is in- 

 corporated within the NAFTA framework and Canada is allowed to 

 continue that practice. It also politically has really left a sour taste 

 in the voters in my region for free-trade talks. They don't believe 

 that free trade is fair trade, given what we have seen with the Ca- 

 nadian Free-Trade Agreement. 



In your upcoming meetings with the representatives of the Cana- 

 dian Government, do you have hopes of addressing this issue? 



Ambassador Kantor. Not only hopes, but we are. 



Let me say that I have had numerous meetings with your two 

 Senators, who are old friends of mine, as you know. We have dis- 

 cussed not only in general but specifically what could be raised and 

 what might be effective. I have raised them already with Minister 

 Wilson. We're meeting on April 2 — and this is No. 1 on my agenda 

 and on the President's agenda — and we will try to get something 

 done effectively. 



We understand the impact this has had in your State and in 

 other States as well. It is not just North Dakota. But the fact is 

 that the rail subsidies were not addressed in the free-trade agree- 

 ment. There is no transparency in the way that the Wheat Board 

 operates. We also have serious concerns as to how that Wheat 

 Board is subsidizing, if they are, the wheat farmers in Canada. We 

 at least gained the right to have an audit of how the Wheat Board 

 operates. We have end-use certificate problems, as you well know. 



There are a number of things that we need to address and we're 

 going to do it. Whether we are successful or not is another question 

 in doing that. I don't want to sit here and promise more than I can 

 deliver. Obviously, we need consenting adults to agree. 



We have some arrows, though, in our possession that we can use. 

 We will not hesitate to use them if it means we have to in order 

 to deal with this very serious issue. And this is not just Durum 

 wheat, it is also barley and Spring wheat, as you know better than 

 I. 



But I will also assure you that this office and this USTR and this 

 President, who was Governor of Arkansas, is focused on agriculture 

 and will continue to do so. 



Mr. POMEROY. The level of detail in your answers to my question 

 and the earlier questions reveal not just a sensitivity but a detailed 

 knowledge that I didn't necessarily believe was represented in our 

 earlier negotiating team. 



We lost a recent appeal on the Durum issue and we can't hardly 

 beheve it, in Hght of the history. I think that perhaps the Canadian 

 Free-Trade Agreement, with its language which includes an actual 



