AAFC News Release
June 8, 2007

CANADA REQUESTS WTO PANEL ON U.S. AGRICULTURAL SUBSIDIES

The Honourable David Emerson, Minister of International Trade, and the Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced that the Government of Canada has requested that a World Trade Organization (WTO) dispute settlement panel be established on the issue of U.S. agricultural subsidies.

“We remain concerned that the U.S. is providing agricultural subsidies in breach of its WTO commitments,” said Minister Emerson. “Requesting a dispute settlement panel reinforces our efforts in the Doha negotiations toward reducing trade-distorting U.S. subsidies.”

“We are standing up for Canadian farmers by taking this concrete action against harmful U.S. agricultural subsidies,” said Minister Strahl. “The drafting of the next Farm Bill over the coming weeks and months is an opportunity for the U.S. to ensure that its subsidy programs comply with its WTO obligations.”

It is Canada’s view that U.S. subsidies exceeded its WTO commitments in 1999, 2000, 2001, 2002, 2004 and 2005. Under WTO rules, the U.S. can provide up to $US19.1 billion annually in trade-distorting agricultural subsidies. Most of these subsidies emanate from Farm Bill programming and are provided to a wide range of agricultural products, including, but not limited to, corn, wheat, soybeans, pulses and sugar.

It is also Canada’s view that, contrary to WTO rules, the U.S. provides export credit guarantees that subsidize the exportation of certain agricultural products.

On January 8, 2007, Canada requested consultations with the U.S. on this matter. Eight other WTO members (the European Union, Australia, Brazil, Argentina, Nicaragua, Guatemala, Uruguay and Thailand) joined the consultations as third parties. The WTO consultations, held on February 7, 2007, did not resolve the issue.

-30-