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<p><span style="font-size: 14pt"></span><span style="font-size: 14pt"><strong>February 10, 2004<center></strong></span><span style="font-size: 14pt"><strong><em>(3:55 p.m. EST)</em></center>
No. 22</strong></span></p>
<p style="text-align: CENTER"><span style="font-size: 14pt"><strong>WTO PANEL REPORT SUPPORTS CANADA'S POSITION ON KEY
CANADIAN WHEAT BOARD ISSUE</strong></span></p>
<p>The Government of Canada today welcomed a World Trade Organization (WTO) panel
report examining the practices of the Canadian Wheat Board (CWB) and certain
Canadian grain sector policies. The government said that it is especially pleased with
the WTO's key decision on the CWB and that it would study other points raised in the
report.</p>
<p>"This report confirms that the CWB's practices are fully consistent with our international
trade obligations," said International Trade Minister Jim Peterson. "Industry
representatives who contributed to the government's case and helped to secure this
positive WTO ruling are to be commended."</p>
<p>"This is a clear and compelling victory on the Canadian Wheat Board issue. The panel
found that the CWB conducts its business in compliance with WTO rules," said Reg
Alcock, President of the Treasury Board and Minister responsible for the Canadian
Wheat Board.</p>
<p>At the request of the United States, the WTO Dispute Settlement Body established a
panel on March 31, 2003, to examine two separate issues. The first was whether the
CWB acts in conformity with Canada's WTO state trading obligations. The second was
whether certain Canadian grain sector policies accord less favourable treatment to
imported grain than domestic grain.</p>
<p>On the second element of the U.S. challenge, the panel ruled that certain Canadian
grain sector policies are inconsistent with Canada's WTO obligations.</p>
<p>Agriculture and Agri-Food Minister Bob Speller also welcomed the report. "Considering
the panel recognizes Canada's right to maintain our grain quality assurance system, the
findings as they relate to the grain sector should have little impact on the Canadian
industry," he said.</p>
<p>Once the final report has been translated and circulated to all WTO members, Canada
and the U.S. will have 60 days to register their intent to appeal part or all of the decision
to the WTO Appellate Body.</p>
<p style="text-align: CENTER">- 30 -</p>
<p>A backgrounder is attached.</p>
<p>For further information, media representatives may contact:</p>
<p>Jacqueline LaRocque</p>
<p>Office of the Minister of International Trade</p>
<p>(613) 992-7332</p>
<p>Media Relations Office</p>
<p>Department of Foreign Affairs and International Trade</p>
<p>(613) 995-1874</p>
<p>André Lamarre</p>
<p>Office of the President of the Treasury Board and</p>
<p>Minister responsible for the Canadian Wheat Board</p>
<p>(613) 957-2666</p>
<p>Vern Greenshields</p>
<p>Office of the Minister of Agriculture and Agri-Food</p>
<p>(613) 759-1020</p>
<p>Media Relations</p>
<p>Agriculture and Agri-Food Canada</p>
<p>(613) 759-7972</p>
<p>This document is also available on the Department of Foreign Affairs and International
Trade's Internet site: <a href="https://bac-lac.wayback.archive-it.org/web/20061209062954/http://www.dfait-maeci.gc.ca/">http://www.dfait-maeci.gc.ca<strong></a></strong></p>
<p style="text-align: CENTER"><span style="font-size: 14pt"><strong>Backgrounder</strong></span></p>
<p>At the request of the U.S., a WTO panel was formed on March 31, 2003, to study the
practices of the Canadian Wheat Board (CWB) and the treatment Canada accords to
imported grain.</p>
<p><strong>Principal issues</strong></p>
<p><em>State Trading Enterprises</em></p>
<p>The panel examined U.S. allegations that the actions of the Government of Canada
and the CWB are inconsistent with Canada's obligations under GATT Article XVII -
State Trading Enterprises.</p>
<p>This article requires that the activities of state trading enterprises be carried out in a
manner consistent with general principles of non-discriminatory treatment and solely in
accordance with commercial considerations.</p>
<p>In its final report, the panel dismissed the U.S. allegations on this issue.</p>
<p><em>National Treatment</em></p>
<p>The panel also examined U.S. allegations that certain Canadian grain sector policies
are inconsistent with GATT Article III - National Treatment.</p>
<p>This article requires that imported products be accorded no less favourable treatment
than that accorded to like domestic products.</p>
<p>In its final report, the panel dismissed the U.S. allegations on one policy (the producer
car program) and affirmed the U.S. claim on three others (rail revenue cap, grain
segregation and entry authorization requirement).</p>
<p>The final report will be publicly available once it has been translated and distributed to
all WTO Members, expected in early March. Once it has been released, either party
has 60 days to determine whether to appeal the decision to the WTO Appellate Body. If
so, an Appellate Body ruling would be expected in early summer 2004.</p>
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