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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">November 8, 2007 <i>(1:30 p.m. EST)</i><br>
No. 156</span></span></span></p>
<br>
<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">CANADA REQUESTS NEW WTO PANEL ON U.S. AGRICULTURAL
SUBSIDIES</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">The Honourable David Emerson, Minister of International Trade and Minister for the
Pacific Gateway and the Vancouver-Whistler Olympics, and the Honourable Gerry Ritz,
Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board,
announced today that Canada is requesting the establishment of a World Trade
Organization (WTO) dispute settlement panel on the issue of U.S. trade-distorting
domestic agricultural subsidies.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“Canada believes that the United States has breached its international obligations by
providing agricultural subsidies that exceed the levels allowed by the WTO,” said
Minister Emerson. “This panel request complements our efforts in the Doha
negotiations to further discipline and reduce trade-distorting agricultural subsidies.”</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“The government expects the United States to live up to its WTO commitments,” said
Minister Ritz. “By requesting this panel, we are trying to level the playing field for
Canadian farmers who have to compete against the large distorting agricultural
subsidies provided by the U.S.”</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">It is Canada’s view that when trade-distorting domestic support is properly accounted
for under the WTO Agreement on Agriculture, the United States exceeded its WTO
commitment in 1999, 2000, 2001, 2002, 2004 and 2005.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Canada’s concerns are shared by Brazil. Brazil is also announcing today that it is
requesting a WTO dispute settlement panel on U.S. agricultural subsidies. Canada and
Brazil have been working together to coordinate their challenges. Given the similarities,
it is expected that their cases will be heard by a single panel.</span></span></p>
<br>
<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">- 30 -</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">A backgrounder follows.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">For further information, media representatives may contact:</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">François Jubinville<br>
Director of Communications<br>
Office of the Minister of International Trade and Minister for the Pacific Gateway and
the Vancouver-Whistler Olympics<br>
613-992-7332</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Trade Media Relations Office<br>
Foreign Affairs and International Trade Canada<br>
613-996-2000<br>
</span></span><a href="https://bac-lac.wayback.archive-it.org/web/20071116041006/http://www.international.gc.ca/"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.international.gc.ca </span></span></span></span></a><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000"></span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Patrick J. McCloskey<br>
Press Secretary<br>
Office of the Minister of Agriculture and Agri-Food<br>
613-759-1199</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Media Relations<br>
Agriculture and Agri-Food Canada<br>
613-759-7972<br>
1-866-345-7972</span></span></span></p>
<br>
<br>
<br>
<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="color: #000000"><span style="font-weight: bold"><span style="font-size: 14pt">Backgrounder</span></span></span></span></p>
<br>
<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="color: #000000"><span style="font-weight: bold"><span style="font-size: 14pt">CANADA REQUESTS NEW WTO PANEL ON U.S. AGRICULTURAL
SUBSIDIES</span></span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">On November 8, 2007, the Government of Canada gave notice that it will make a
request to the World Trade Organization (WTO) that a dispute settlement panel be
established on the issue of U.S. agricultural subsidies at the November 19, 2007,
meeting of the WTO Dispute Settlement Body (DSB).</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000"><span style="font-weight: bold">Canada’s objectives for a panel request</span></span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Canada believes that the United States is providing 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
United States 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.</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">In October 2007, the U.S. notified the WTO of what it considers to be its trade-distorting
subsidies for the years 2002-2005. The U.S. claims that these notifications, along with
its earlier WTO notifications, show that its annual levels of trade-distorting support have
been within its WTO commitment.</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">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 agricultural subsidies
exceeded U.S. WTO commitments throughout 1999-2002 and in 2004 and 2005.</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Canada’s concern is shared by other WTO members, including Brazil, with which
Canada has been working to coordinate this challenge.</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">This request is distinct from and supersedes the one filed by Canada on June 20, 2007
(see
</span></span></span><a href="https://bac-lac.wayback.archive-it.org/web/20071116041006/http://w01.international.gc.ca/minpub/Publication.aspx?isRedirect=True&publication_id=385208&Language=E&docnumber=77"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #0000ff"><span style="text-decoration: underline">http://w01.international.gc.ca/minpub/Publication.aspx?isRedirect=True&publication_id=385208&Language=E&docnumber=77</span></span></span></span></a><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">). Among other things, Canada’s new request
does not include a challenge to the export credit guarantee measures, in light of a
recent decision on these measures by a WTO panel in the Brazil-U.S. cotton dispute.</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Canada is continuing to seek substantial reductions in U.S. trade-distorting domestic
support in the WTO Doha negotiations.</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000"><span style="font-weight: bold">Next steps</span></span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Canada will be making its request for the establishment of a panel at the meeting of the
WTO DSB on November 19, 2007.</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Under WTO rules, a panel usually delivers its findings within six to eight months of the
panel members being chosen, although this can sometimes take longer.</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Further information about the WTO dispute settlement process can be obtained from
the WTO website at </span></span></span><a href="https://bac-lac.wayback.archive-it.org/web/20071116041006/http://www.wto.org/english/thewto_e/whatis_e/tif_e/disp1_e.htm"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.wto.org/english/thewto_e/whatis_e/tif_e/disp1_e.htm</span></span></span></span></a><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">.</span></span></span></p>
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