Surface Transportation Board Following Canadian Performance Mandates

Press Release

Chairman Daniel Elliott and Commissioner Ann Begeman of the Surface and Transportation Board responded to Congressman Kevin Cramer's concerns about the Canadian government's grain rail shipment performance mandates upon the Canadian National (CN) and Canadian Pacific (CP) Railroads.

In March of this year Canada required CP and CN to deliver 500,000 metric tonnes of Canadian grain, on a weekly basis, less face daily fines. The delivery requirement was later increased to 536,250 tonnes this past August, with the mandates currently set to expire on November 29th. Cramer began communicating his concerns with the mandates to Canadian Ambassador Gary Doer and the Canadian Parliament shortly after their initial creation.

On September 26th Cramer wrote to Ambassador Doer calling for the mandates to expire, requesting assistance from the Surface and Transportation Board, as well as U.S. Trade Representative Michael Froman and U.S. Secretary of Agriculture Tom Vilsack. In separate letters, Chairman Elliott and Commissioner Begeman "appreciated" Cramer's views regarding the performance mandates, with Commissioner Begeman indicating she will continue to follow the matter "closely".

"The Canadian rail mandate constitutes a clear violation of the WTO principles of non-discrimination and fair trade. It confers an unfair advantage to Canadian producers, undermining free trade and competition within the United States and Canada. Notwithstanding the damage already caused to U.S. shippers, hopefully extra scrutiny by the STB will further compel the Canadian government to allow the mandates to expire next month," said Cramer.

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