Foster Ongoing Trade Relations

Canada has more than 30 million consumers with similar tastes and buying habits, and offers a market that is close - and also pays well - for America's agricultural products. For example, for California's peaches, plums and nectarines, Canada has been the No. 1 market for 20 years and is worth more than $75 million annually. Canada also plays a big part in the overall export success of American agricultural goods. The USDA's Economic Research Service, in an Outlook document issued May 31, said it expects U.S. agricultural exports to be a record $77.5 billion for the 2007 fiscal year, and imports to rise to $70.5 billion. The U.S. expects to import $300 million more of agricultural products from Canada, but certain commodities won't be as high as in the past. First, there will be fewer cattle imported from Canada, because it is expected to have a smaller herd. Canada also offers reduced export competition, such as for wheat - thanks in part to its rising dollar, which hit a 30-year high of more than 94 cents against the U.S. dollar on June 1. http://www.capitalpress.info:80/main.asp?SectionID=75&SubSectionID=767&ArticleID=32821&TM=61142.52 [Proofreader's note: this article was edited for spelling and typos on June 11, 2007]

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