CHICAGO — The five-decade barrier to United States exports of wheat and wheat products to Canada ends this week. Under the US-Canada free-trade deal, Canada is required to open its market if its wheat subsidies exceed those paid in the US. The US Department of Agriculture confirmed on May 3 that Canada's subsidy was a few percentage points higher during the most recent two-year period. Under the trade agreement, the barrier cannot be reimposed unless the US alters its subsidy program so that exports to Canada soar.
However, the end of the trade barrier does not necessarily mean an increase in US sales to Canada. Rather, Canada's domestic price has already fallen to a level that won't attract imports.