Newsroom
2004
WTO releases report vindicating CWB
April 6 , 2004
Winnipeg - The World Trade Organization (WTO) dispute settlement panel that exonerated the CWB from American claims of unfair trade practices on February 10, 2004 released its written report today.
"This report provides ample evidence that the charges leveled against the CWB were baseless," said Ken Ritter, chair of the CWB's farmer-controlled board of directors, adding he would be sending a letter to all WTO member-countries highlighting the dispute settlement panel's findings.
Dismissing the American charge that the CWB has an incentive to undercut wheat prices because of its structure, the report notes: "In view of the CWB's current governance structure, which gives Western Canadian producers control over the CWB … the CWB has an incentive to maximize returns to the producers whose products it markets." (p.162).
The Americans' assertion that the CWB does not operate according to commercial considerations was also soundly rejected. "…we are not persuaded that the CWB's legal structure and mandate, together with the privileges enjoyed by the CWB, create an incentive for the CWB to make sales which are not solely in accordance with commercial considerations. The factual evidence adduced by the United States regarding actual CWB sales behaviour does not prove otherwise." (p. 168).
The WTO dispute settlement panel was convened March 31, 2003 to investigate, among other things, U.S. complaints that the CWB operates in violation of Article XVII of the General Agreement on Tariffs and Trade (GATT). The full text of the report is available on the WTO Web site.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, contact
Louise Waldman
Manager, Media Relations
Tel: (204) 983-3101
Cell: (204) 299-8398