The Canadian government decision June 8 to haul the United States before a World Trade Organization panel to defend its corn subsidies is aimed squarely at influencing the next U.S. farm bill.
Agriculture minister Chuck Strahl referred to congressional work on the farm bill when he announced that Canada has requested a WTO dispute settlement panel to hear arguments on American farm subsidies.
“The drafting of the next farm bill over the coming weeks and months is an opportunity for the U.S. to ensure that its subsidy programs comply with its WTO obligations,” he said in a statement.
Read Also
Canola support gets mixed response
A series of canola industry support measures announced by the federal government are being met with mixed reviews.
Trade minister David Emerson said it also is a message to the Americans that the current WTO negotiation must result in lower U.S. subsidies.
The challenge to U.S. farm support levels is based on what Canada says are excessive levels of subsidy to corn producers that drive down Canadian prices.
But its implications are far broader as arguments are made about overall American support levels. Eight other WTO members including the European Union, Australia and Brazil are supporting Canada.
The Canadian argument is that in 1999, 2000, 2001, 2002, 2004 and 2005, the U.S. exceeded its WTO obligation to spend no more than $19.1 billion US on subsidies that distort trade or production.
