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United States files WTO case on monopolistic Canadian Wheat Board (Tuesday, Dec. 17, 2002 -- CropChoice news) -- From an Office of the U.S. Trade Representative press release.
CONTACT:
RICHARD MILLS, (202) 395-3230
WASHINGTON - U.S. Trade Representative Robert B. Zoellick announced today that the United States will file a case against Canada in the World Trade
Organization (WTO) over the wheat trading practices of the monopolistic Canadian Wheat Board (CWB).
In addition, the United States is challenging as unfair and burdensome Canada’s requirements to segregate imported grain in the Canadian grain handling
system, along with Canada’s discriminatory policy that affects U.S. grain access to Canada’s rail transportation system. This WTO case continues the
Administration’s aggressive pursuit of ensuring a fair trading system for American farmers.
“The Canadian Wheat Board is a monopoly, and its special benefits and privileges put American wheat farmers at a disadvantage and undermine the
integrity of the international trading system,” Zoellick said. “American wheat farmers are the most competitive in the world. This Administration is
committed to opening markets around the world and to fighting aggressively to see that American farmers are treated fairly.”
“The U.S. WTO proposal calls for the elimination of the monopoly powers of state trade enterprises such as the Canadian Wheat Board,” said Agriculture
Secretary Ann M. Veneman. “The action today highlights this Administration's commitment to ensuring a fair and open market for U.S. wheat
farmers.”Under WTO rules, the first step in a WTO dispute is for both parties to hold formal meetings. The United States will ask for consultations with
the Canadians on Dec. 17, 2002, to discuss whether the CWB abides by global trade rules for state trading enterprises. In addition, the US will seek to end
Canada’s discriminatory policies of segregating wheat and on access to the Canadian rail transportation systems.
On Feb. 15, 2002, Zoellick released an Affirmative Finding after an investigation under section 301 of the Trade Act of 1974. In the Finding, Zoellick
described the multiple avenues USTR would take to seek relief for American wheat farmers from the unfair trading practices of the CWB, a government
state trading enterprise. In April 2001, U.S. Chief Agriculture Negotiator Allen F. Johnson went to North Dakota to hear directly from wheat farmers on
the CWB’s unfair competition.
There are four prongs to the February plan, which the Administration is pursuing aggressively.
The North Dakota Wheat Commission and the broader U.S. wheat industry support the Administration’s decision to file a WTO case on the wheat trading
practices of the CWB. |