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Four more world-trading powers join Canada in U.S. farm subsidy complaint

Published on 02/08/2007

The European Union, Australia, Brazil and Argentina have joined Canada in a complaint against the United States about subsidies paid to American corn growers.

OFBF's Senior Director of National and Regulatory Affairs Adam Sharp said the complaint is aimed at U.S. farm subsidies in general.

"While this filing is aimed at corn, the questions being raised are clearly political in nature and target U.S. commodity support programs for many or all crops," he said. "They are trying to influence our next farm bill."

On Jan. 8 Canada asked for formal World Trade Organization (WTO) consultations -- which are the beginning of the WTO dispute settlement process -- with the United States. If discussions between the two parties fail to resolve the issues, Canada will have the option of using a WTO dispute settlement panel.

The complaint calls the subsidies "trade-distorting support," based on subsidies provided to U.S. corn growers for marketing years 1996 to 2006. Canadian agriculture officials claim those subsidies violated the WTO Agreement on Subsidies and Countervailing Measures by causing significant price suppression for corn in the Canadian market.

The WTO filing comes at such a time when global free trade talks remain stalled over tariffs and subsidies and as Congress begins debating the new farm bill.

However, American Farm Bureau President Bob Stallman has said the consultation request should have no bearing on the U.S. goals in domestic and international policy.

"We're going to write our own farm policy to help our farmers," Stallman said.

 
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