Banff - Canada and the United States could reach a quick resolution in a recent cross-border agricultural trade dispute, officials from both countries said.
Canada said it had requested consultations with the World Trade Organization (WTO) and under the North American Free Trade Agreement (NAFTA) to stop the state of South Dakota's shipping ban on Canadian cattle and grains.
"A resolution in this could be reached any time," said Terry Norman, a top official with Agriculture and Agri-Food Canada, at the Canada-United States grain summit taking place in this picturesque town in the Canadian Rocky Mountains.
Norman said initial consultations, where Canada will determine the strength of its case, would take 15 to 20 days. It could be followed by Canada's request for the establishment of a panel -- which could take up to one year.
"The procedure is set up in such a way that the problem is resolved before it gets to the panel," said Norval Francis, minister counselor for United States Agriculture at the U.S. Embassy in Ottawa.
"It's what needs to be done. Canada is taking all the proper steps," Francis said.
Norman said Canada was disappointed that the United States had failed to force South Dakota Governor Bill Janklow, facing an election in November, to rescind an order to ban trucks carrying Canadian cattle unless they are free of certain antibiotics and Canadian grain unless it is free of certain diseases.
"Janklow has taken unilateral measures that at least from the Canadian perspective, do not appear to be well founded," Norman said, adding the measures violated U.S. laws and did not comply with sanitary measures established under WTO and NAFTA accords.
South Dakota, along with with several other neighboring states, which have stepped up inspections of trucks from Canada has argued that Canadian import rules for grains and cattle coming from the United States are much tougher for U.S. rules for Canadian imports.
Governors in North Dakota, Montanan and Idaho have expressed varying degrees of support for Janklow's actions, who is running for re-election this year.
Minnesota could be the next state to join the fray.
State Representative Doug Peterson asked Minnesota governor Arne Carlson to order state patrol inspections of Canadian trucks hauling grain and livestock.
"These Canadian imports are driving Minnesota farmers out of our own markets, and contributing to the depression in farm prices," said Peterson in a press release.
"It seems to be related to domestic politics," Norman said. "It is a domestic political situation and no one is willing to take on South Dakota. Our position is that we still expect the U.S. to live up to its obligations."
Larry Maguire, president of the Western Canadian Wheat Growers' Association, said his group wanted to see a rapid settlement of the dispute.
"We'd like to see it stopped sooner, long before the November 3 election," he said. "There could be grave consequences of what could happen if it goes on longer."
Canada's Saskatchewan province, one of the three grainbelt provinces, said last week it could seek compensation from South Dakota on behalf of agricultural producers suffering losses.
Norman said WTO and NAFTA rulings could provide for compensation.
Jim Turner, vice chairman of the Alberta Cattlemens' Association, said his group supported freer trade between the two countries and said Canada still lacked a process allowing feeder cattle in from the United States.
But he supported Canada's move, since cattle trucks had been slowed down on the Montana border and forced to drive around South Dakota.
"It is a major concern in the beef industry, and it is a positive step if it puts pressure on the United States," he said, but added the possibility existed that Canada could lose its appeals under the WTO or NAFTA.
"The biggest fear is the uncertainty," he said.
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