April 8, 2004                         (6:30 p.m. EDT)                                    No. 55

CANADA ASKS FOR WTO CONSULTATIONS WITH U.S. ON
HARD RED SPRING WHEAT

The Government of Canada today announced that it has requested World Trade Organization (WTO) consultations with the United States on the U.S. International Trade Commission (ITC) finding that imports of hard red spring wheat are injuring U.S. producers. This is part of ongoing efforts to press the U.S. to lift countervailing and anti-dumping duties on Canadian hard red spring wheat exports.

“Canadian exports of hard red spring wheat to the United States are carried out fairly and transparently, and they fully meet Canada’s international trade obligations,” said International Trade Minister Jim Peterson. “To say they’re causing injury is wrong, and we will continue to push hard for the removal of these unfair duties.”

“Canada neither dumps hard red spring wheat into the American market nor subsidizes hard red spring wheat shipments to the U.S.,” said Agriculture and Agri-Food Minister Bob Speller. “The Government of Canada will pursue all legal avenues to defend the interests of Canadian wheat producers.”

“The Government of Canada is working closely with the Canadian Wheat Board and other interested parties to defend Canada’s interests in this trade case,” said Reg Alcock, President of the Treasury Board and Minister responsible for the Canadian Wheat Board.

On October 3, 2003, after affirmative U.S. Department of Commerce (DOC) countervailing and anti-dumping findings that led to duties of 14.15 percent on hard red spring wheat from Canada, the U.S. ITC concluded that these imports were injuring U.S. producers. These duties have severely limited Canadian exports of hard red spring wheat to the U.S.

There are currently two other active Canadian challenges on hard red spring wheat under the North American Free Trade Agreement:

•         a Government of Canada request, dated October 3, 2003, on a U.S. DOC ruling that imports of certain types of Canadian wheat are subsidized; and

•         a Canadian Wheat Board request, dated November 24, 2003, regarding the decision by the U.S. ITC that imports of hard red spring wheat are causing injury to the U.S. industry.

Both panel review decisions are expected sometime in the fall.

Total exports of wheat to the U.S. average about $400 million annually, with hard red spring wheat accounting for approximately $250 million of that amount. About 10 to 15 percent of Canadian wheat exports go to the U.S.

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For further information, media representatives may contact:

Jacqueline LaRocque
Director of Communications
Office of the Minister of International Trade
(613) 992-7332

Media Relations Office
Foreign Affairs Canada and International Trade Canada
(613) 995-1874

Carla Ventin
Press Secretary
Office of the Minister of Agriculture and Agri-Food Canada
(613) 759-1346

Media Relations
Agriculture and Agri-Food Canada
(613) 759-7972

Lise Jolicoeur
Press Secretary
Office of the President of the Treasury Board and
Minister responsible for the Canadian Wheat Board
(613) 957-2666

Mario Baril
Media Relations
Treasury Board of Canada Secretariat
(613) 957-2391

This document is also available on the Internet site of Foreign Affairs Canada and International Trade Canada: http://www.dfait-maeci.gc.ca.