PDF _ RL33853 - Canada’s WTO Case Against U.S. Agricultural Support
17-Sep-2007; Randy Schnepf; 19 p.

Update: Previous releases:
March 4, 2007
January 31, 2007
Update:On May 2, 2007, the Canadian International Trade Minister announced that the Canadian government would hold off on taking any further action in its World Trade Organization (WTO) dispute settlement proceeding (DS357) against U.S. corn subsidies until at least the end of the year pending the outcome of current Doha Round trade negotiations. Earlier this year, Canada had taken the first step in instituting a WTO dispute settlement case when it requested consultations with the United States to discuss Canadian concerns regarding certain aspects of U.S. commodity programs in general, and the U.S. corn program in particular.

Canada’s corn producers harbor long-simmering concerns about U.S. farm programs that previously surfaced in 2005 in the form of an anti-dumping (AD) and countervailing (CV) duty case that sought legal action for alleged unfair subsidization and dumping of U.S. corn in Canadian markets. Canada’s International Trade Tribunal (CITT) ultimately ruled in favor of the United States on the 2005 AD/CV duty case. However, Canadian corn producers continued to press their concerns with the Canadian government about perceived unfair subsidization of U.S. corn.

Abstract: On January 8, 2007, Canada initiated a World Trade Organization (WTO) dispute settlement case (DS357) against certain aspects of U.S. commodity programs in general, and the U.S. corn program in particular, by requesting consultations with the United States under the auspices of the WTO dispute settlement process. Canada’s WTO case represents the present manifestation of long-simmering concerns that previously surfaced in 2005 in the form of an anti-dumping (AD) and countervailing (CV) duty case brought by Canadian corn producers who sought legal action for alleged unfair subsidization and dumping of U.S. corn in Canadian markets. Canada’s International Trade Tribunal (CITT) ultimately ruled in favor of the United States on the 2005 AD/CV duty case. However, Canadian corn producers continued to press their concerns with the Canadian government about perceived unfair subsidization of U.S. corn. This pressure, and other supporting factors, likely contributed to the Canadian government’s decision to request WTO consultations with the United States, thereby setting in motion the WTO dispute settlement process with its explicit rules and timetables for resolving a trade dispute. [read report]

Topics: Agriculture, Economics & Trade, International

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