(Monday, Aug. 30, 2004 -- CropChoice news) -- Reuters: GENEVA - The World Trade Organization (news - web sites)'s (WTO)
top trade court on Monday rejected a U.S. appeal against a ruling
exonerating the export policies of the Canadian Wheat Board, diplomats and
trade sources said.
Its Appellate Body upheld the findings of a WTO panel of trade judges in
February that the Wheat Board's exclusive right to buy and sell western
Canadian grain for export, and its right to set the initial price, did not
break world trade rules.
In the earlier verdict, the judges backed a U.S. challenge to parts of Canada's import policy, but neither side appealed this part of the decision.
"It leaves the panel ruling unchanged," said one diplomatic source, who
declined to be named.
The farmer-controlled Wheat Board has a monopoly on wheat exports from
Canada's Prairie grain belt and has been a frequent target of complaints
from the United States over the past decade that it subsidizes farmers.
But under the terms of the February ruling, Ottawa must change rules that
prohibit the mixing of eastern and western grain for export sales and modify
its rail revenue cap.