Agricultural trade between the United States and Canada has been contentious since the inception of the CUSTA agreement in 1989. Even though Canadian exports of wheat and barley are not found to have violated U.S. trade remedy laws, friction seems likely to continue as long as the surge in Canadian exports remains unabated. Gradual harmonization of trade policies, farm subsidy programs, and marketing institutions may reduce trade disputes between the two countries in the future. To diffuse the threat of future trade disputes, a Canada - U.S. joint research team should be formed to deal with the matter through better understanding for causes of the disputes.


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