A potato trade war is threatening to erupt between Canada and the US, after the Canadian government and potato industry officials refused conditions contained in a proposal from the American Department of Agriculture to reopen the US border to shipments of Prince Edward Island (PEI) potatoes.
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The US has refused to admit exported potatoes from the island province for nearly three months after potato wart, a contagious fungal disease, was discovered in crops.
PEI potato growers have lost millions of dollars in revenue which has left piles of rotting potatoes on the island.
Washington and Ottawa have triggered a North American Free Trade Area disputes procedure, giving them 15 days to resolve the issue, or leave Canada with the right to take the ban to a binding dispute-settlement panel.
By Monica Dobie, just-food.com correspondent
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