Statement by USTR Spokesman Christopher Padilla in Response to WTO Appellate Body Report: Canada Measures Relating to Exports of Wheat and Treatment of Imported Grain
"The United States won an important victory in April 2004 when a World Trade Organization (WTO) panel found that Canada’s grain distribution and rail transportation systems are unfair and discriminate against U.S. grain. Today’s report by the WTO Appellate Body does not alter that important victory for America’s farmers. At the same time, the earlier panel report and today’s Appellate Body finding both reaffirm the need to develop meaningful disciplines on agricultural state trading enterprises like the Canadian Wheat Board (CWB). The United States was pleased that when the General Council of the WTO met in Geneva in July 2004, it decided to call for the elimination of government financing, underwriting and export subsidies for agricultural state trading enterprises like the CWB in the context of the Doha Development Agenda of WTO negotiations. The July decision also offers the possibility to negotiate the elimination of the monopoly powers of such enterprises. Indeed, today’s report by the Appellate Body notes that the existing WTO agreement itself recognizes the need for more negotiations. The United States will continue to press in the ongoing Doha negotiations for meaningful disciplines on agricultural state trading enterprises."