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<title>CANADA WILL DEFEND ITS WHEAT POLICIES BEFORE WTO</title>
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<p><font size="+1"></font><font size="+1"><strong>March 31, 2003 <em>(4:10 p.m. EST)</em> No. 34</strong></font></p>
<p><font size="+1"><strong>CANADA WILL DEFEND ITS WHEAT POLICIES BEFORE WTO</strong></font></p>
<p>The Government of Canada said today that it will defend its wheat policies and the practices of the Canadian Wheat Board
(CWB), in reaction to the establishment of a World Trade Organization (WTO) panel requested by the United States.</p>
<p>"The WTO clearly provides members with the right to establish and maintain a state trading enterprise such as the
Canadian Wheat Board," said International Trade Minister Pierre Pettigrew. "We believe our wheat sector policies are fully
consistent with our international obligations and we will defend them in this panel process."</p>
<p>"The United States has a long history of making unsubstantiated allegations against the Canadian Wheat Board," said
Public Works and Government Services Minister and Minister responsible for the Canadian Wheat Board Ralph Goodale.
"The Government of Canada will aggressively defend Canada's interests before the WTO panel and remains steadfast in
the belief that the CWB trades fairly."</p>
<p>"I am disappointed that Canada must once again defend its wheat-trading policies in the face of another U.S. challenge,"
said Agriculture and Agri-Food Minister Lyle Vanclief. "I find it difficult to understand why the U.S. government continues
to challenge Canadian wheat policies while providing substantial levels of support to their own producers."</p>
<p>The WTO allows for the operation of state trading enterprises, such as the Canadian Wheat Board, as long as they operate
in a non-discriminatory manner and in accordance with commercial considerations.</p>
<p>The dispute panel was established by the WTO today in Geneva. The panel's report is not expected until early next year. </p>
<p align="CENTER">- 30 -</p>
<p>A backgrounder is attached. </p>
<p>For further information, media representatives may contact: </p>
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<p>Sébastien Théberge</p>
<p>Director of Communications </p>
<p>Office of the Minister for 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>Pat Breton</p>
<p>Press Secretary</p>
<p>Office of the Minister of Public Works and Government
Services</p>
<p>(613) 996-6708</p>
<p>Donald Boulanger</p>
<p>Press Secretary</p>
<p>Office of the Minister of Agriculture and Agri-Food Canada</p>
<p>(613) 759-1761</p>
<p>Media Relations</p>
<p>Agriculture and Agri-Food Canada</p>
<p>(613) 759-7972 </p>
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<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/20061209062623/http://www.dfait-maeci.gc.ca/">http://www.dfait-maeci.gc.ca</a></p>
<p align="CENTER"><font size="+1"><strong>Backgrounder</strong></font></p>
<p>On December 17, 2002, the United States requested WTO consultations with Canada on matters concerning the operations
of the Canadian Wheat Board (CWB) and the treatment accorded by Canada to imported grain. These consultations were
held on January 31, 2003. A WTO panel was formed on March 31, 2003.</p>
<p>The panel will examine 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. 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>The panel will also examine U.S. allegations that certain Canadian grain transportation policies and parts of the Canada
Grain Act and Regulations are inconsistent with GATT Article III - National Treatment, and the Agreement on Trade
Related Investment Measures. These agreements require that imported products be accorded no less favourable treatment
than that accorded to like domestic products.</p>
<p>The panel process can take upwards of nine months, with a decision likely rendered in January 2004. Thereafter, either
party may appeal the decision to the WTO Appellate Body.</p>
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