Dispute Settlement
FAST FACTS: Canada requests WTO panel on U.S. agricultural subsidies
On November 8, 2007, the Government of Canada announced that it
would request the establishment of a World Trade Organization (WTO)
dispute settlement panel on U.S. agricultural subsidies at the November
19, 2007, meeting of the WTO Dispute Settlement Body (DSB).
Canada’s position
Canada is requesting a WTO panel because it believes that the United
States has provided trade-distorting agricultural subsidies in excess
of its WTO commitments. Under its Total Aggregate Measurement of
Support (Total AMS) commitments under the WTO Agreement on Agriculture,
the U.S. agreed that its level of trade-distorting domestic support
would not exceed US$19.9 billion for 1999 and US$19.1 billion for
each subsequent year.
Canada disagrees with how the United States classifies a number
of its subsidy programs when it calculates its level of trade-distorting
domestic support. It is Canada’s view that when these programs
are properly accounted for under the WTO Agreement on Agriculture,
the level of U.S. trade-distorting subsidies exceeded U.S. WTO commitments
in 1999, 2000, 2001, 2002, 2004 and 2005.
Most of the U.S. trade-distorting subsidies come from Farm Bill
programming and are provided to a wide range of agricultural products.
The U.S. Congress is expected to complete shortly a new Farm Bill
for the years 2008-2013. However, the proposals being considered
by the U.S. Congress do not address Canada’s WTO concerns.
Chronology of events
-
February 7, 2007
Canada holds consultations with the U.S. on its trade-distorting
agricultural subsidies. Eight other WTO members, including Brazil,
participate as third parties in these consultations. (See January
8, 2007, news release entitled “Canada
Requests WTO Consultations on U.S. Agricultural Subsidies.”)
-
June 8, 2007
Canada announces that it will make an initial request for a
panel. The request relates both to the level of U.S. trade-distorting
domestic agricultural subsidies and certain export credit guarantee
measures. The U.S. blocks this first request to establish a
panel at the June 20 DSB meeting (as allowed under WTO rules).
(See June 8, 2007, news release entitled “Canada
Requests WTO Panel on U.S. Agricultural Subsidies.”)
-
August 22, 2007
Canada participates as a third party in consultations held by
Brazil on U.S. trade-distorting domestic support. Eight other
WTO members participate as third parties in these consultations.
- November 8, 2007
The Government of Canada announces that it will request a dispute
settlement panel on the issue of the level of U.S. trade-distorting
domestic agricultural subsidies. This new request does not include
claims with respect to export credit guarantee measures, as this
matter has been addressed in another WTO panel. (See June 8, 2007,
news release entitled “Canada
Requests New WTO Panel on U.S. Agricultural Subsidies.”)
Further information about the WTO dispute settlement process can
be obtained from the WTO
website.
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