CANADA/USA: WTO rules on Canadian wheat marketing system

By Keith Nuthall | 16 April 2004

The World Trade Organisation (WTO) has ruled that elements of Canada's collective what marketing systems break its rules, taking some shine off Ottawa's earlier claims of an oncoming victory in the dispute brought by the United States.

A WTO disputes settlement panel has now told Canada to reform the Canada Grain Act, Canada Grain Regulations, and the Canada Transportation Act, to comply with the General Agreement on Tariffs and Trade (GATT).

The US Trade Representative claimed the ruling was a "win for American farmers", highlighting WTO criticism of mandatory authorisation requirements for foreign grain entering Canada, its rail revenue cap - lowering transport costs for the Canadian Wheat Board, and a ban on mixing foreign with eastern Canadian grain.