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July 1998

General Trade SummaryJuly 1997-May 1998 Highlights

The U.S. Customs Service recentlyrevised U.S. export statistics for planting seeds occurring overthe past three years. The revised field crop seed exports formarketing years 1995/96 and 1996/97 were reduced by about 36percent and 72 percent, respectively. Through May of marketingyear 1997/98, revised field crop exports are about 40-percentlower than originally reported. 

The revisions primarily affect exportdata for field crop seeds, most notably soybean and non-durumwheat seeds. Through May of this marketing year, soybean seedexports were revised downward to 82,803 metric tons from 156,699metric tons. Non-durum wheat seed exports were reduced to 45,108 metrictons from about 225,180 metric tons.

The revised trade statistics significantly lowered U.S. seedexports to Mexico, Canada, Japan, and Egypt. The U.S. CustomsService is reporting that Mexico imported 110,391 metric tons ofU.S. seed through May of marketing year 1997/98, down from184,256 metric tons, as originally reported. Canada’s importof U.S. seed is down to 58,595 metric tons from 80,635 metrictons. U.S. seed exports to Japan were revised downward to 46,945metric tons from 85,545 metric tons. Exports of U.S. seed toEgypt is now 30,037 metric tons, revised downward from 138,884metric tons. Total U.S. seed exports to these countries formarketing years 1995/96 and 1996/97 were also revised downward by16 percent and 38 percent, respectively.

**Attache Reports**

Following is an excerpt from the U.S. Agricultural Attachereport from Canada received in FAS/Washington. A copy of thecomplete report may be found on the FAS homepage at www.fas.usda.gov .

**Canada (Report number CA8010):**The United States is thedominant foreign supplier of planting seeds to Canada. U.S. seedexports to Canada are generally 14 times greater than theNetherlands, the closest foreign competitor to the United States.Domestic seed is the main competitor to U.S. seed in Canada 

Domestic producers of planting seed in Canada range fromfarmers supplying common seed to large multinationals offering afull line of pedigreed seed. The Canadian Seed Grower’sAssociation (CSGA) represents Canada’s 4,700 seed producers,and acts as the national seed certifying agency. The CSGAsupports seed-related research, lobbies the government on behalfof its membership, and organizes seed shows and promotions.

However, given the Canada-U.S. Free Trade Agreement (CFTA), asincorporated into the North American Free Trade Agreement(NAFTA), many seed companies view the United States and Canada asa single market. 

Under CFTA/NAFTA, Canada eliminated tariffs on imports of U.S.planting seeds. With Canada’s elimination of freightsubsidies and most other support programs for grains andoilseeds, cropping patterns as a whole are more flexible andresponsive to market conditions. Relative crop prices androtation consideration will be major factors shaping demand forfield crop seeds. For instance, the projected expansion inlivestock production is expected to generate higher demand forfeed grains.

Canada prohibits access to seed imports that do not conform tostandards prescribed in the Canadian Seed Regulations. Exportersplanning to market seed in Canada should refer directly to theregulations which provide information on seed grading,certification, labeling, packaging and registration. The SeedRegulations can be found on the Canadian Food Inspection Agencyhomepage at: http://www.cfia-acia.agr.ca/english/actsregs/seeds/seedre.html.

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For more information on U.S. Planting Seed Trade you maycontact Mark Rasmussenat (202) 720-9497

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| *Last modified: Tuesday, August 11, 1998* |