PRESQUE ISLE – The Prince Edward Island potato industry has lost about $30 million in sales as a result of the restrictions placed on the movement of P.E.I. spuds by the U.S. government, according to a Canadian report issued late last week.

The losses, in Canadian funds, are as of the end of February.

The report, issued by the Atlantic Provinces Economic Council, also said that the American action has caused the loss of the equivalent of 228 potato-related jobs on P.E.I. That loss of income has adversely affected the amount of expenditures in many island communities, the report said.

“Moreover, the continuing uncertainty regarding the resolution of the trade dispute is making it difficult for farmers to plan for the coming year,” said the report.

Ivan Noonan, director of the P.E.I. Potato Board, said Monday that the report appeared to be reasonably close to reality. Current estimates could take the damage up to $45 million, (Canadian) Noonan said.

“Restaurants are closing, mom-and-pop stores are closing,” Noonan said of the ban’s spinoffs. “It’s [the ban] put the economy off 25 to 30 percent. It’s staggered everyone from hairdressers to car dealerships.”

Meanwhile, Canadian and American officials met over the holiday weekend to further discuss the U.S. restrictions imposed after the potato wart fungus was found last fall in a P.E.I. field. Since island farmers have not agreed to the restrictions, the result has effectively been a ban on island potatoes entering the United States.

Last week, Canadian agriculture minister Lyle Vanclief announced that the ban was being lifted after he had received a letter from USDA officials. A day later, however, controversy erupted when U.S. federal and potato industry officials claimed that Vanclief misinterpreted the letter.

According to the Canadian report, the long-term impact of the trade dispute on island farmers will depend on how long it continues and under what conditions the border is reopened.

“Some lost markets, especially for seed potato[es], may be hard to regain,” the report said. “Growers that have not made sales this past year will find it difficult to obtain credit for the new season.”

Under the North American Free Trade Agreement, the United States is allowed to take measures to protect plant life within its territories based on “scientific principles.”

However, Canadian officials claimed that island farmers and scientists have done everything needed to contain the fungus, which causes cauliflowerlike eruptions on the tubers, rendering them unmarketable.

Canadian officials claim that the United States is using the wart issue to keep P.E.I. potatoes out of American markets at a time when stocks are at an all-time high in the United States.

According to the latest USDA report, potato stocks are up 20 percent over last year, exceeding the 1997 record by 4 percent.

P.E.I. produces about 30 percent of all of Canada’s potatoes. About 16 percent of its tablestock, or fresh potatoes are exported to the United States, while only about 1 percent of its seed stock is shipped south of the Canadian border.

Sales to Canadian customers also were lost when the customers were unable to purchase bulk shipments of P.E.I. spuds due to American restrictions. As a result the customers went elsewhere, according to the report.