International critics of Canada’s dairy export system likely will make another appeal to the World Trade Organization, trying to prove that Canadian exports are illegally subsidized, says an American dairy lobby group.
In early December, a WTO appeals panel dismissed a four-year effort by the United States and New Zealand to prove Canada’s exports benefit from an indirect subsidy.
Canadian officials said at the time it was the end of the case. The judgment overturned a compliance panel ruling that said in July that Canada was not honouring an earlier demand that it reduce export subsidies.
Read Also

Supreme Court gives thumbs-up emoji case the thumbs down
Saskatchewan farmer wanted to appeal the court decision that a thumbs-up emoji served as a signature to a grain delivery contract.
Last week, the U.S. Dairy Export Council suggested otherwise.
“The United States and New Zealand are expected to request that the WTO compliance panel review its previous decision on Canada’s milk pricing scheme in light of this week’s lack of ruling … on whether the Canadian system was consistent or not with its WTO commitments,” the export council said in a Dec. 7 note to its members.
The U.S. dairy exporters said the Dec. 3 ruling was a technical win for Canada but not the major victory it claimed.
“It did not give Canada a green light on its existing programs,” said a Dec. 4 statement issued by a coalition of American dairy groups.
“Moreover, though the Canadians have been quick to claim victory in this case, nowhere in the appellate body’s report does it state that Canada’s export subsidy scheme is consistent with its WTO commitments.”
In Ottawa last week, government officials dismissed the chance any appeal will be successful. Trade minister Pierre Pettigrew said the judgment proves Canada benefits from its membership in the WTO.
“It provides a vehicle to ensure we can participate in world markets when others try to shut the door on us,” he said.
“For Canadian dairy producers, processors and exporters, it is a significant victory.”