Canada rattles the chain

From a government Web site, here are details about the news that Canada has requested a WTO panel on U.S. agricultural subsidies. Under WTO rules, the U.S. can provide up to $19.1 billion in trade distorting subsidies a year. Canada believes that the U.S. has exceeded its limits on trade distorting agricultural subsidies in 1999, 2000, 2001, 2002, 2004 and 2005.
From the Canadian site:

On January 8, 2007, Canada requested consultations with the U.S. on this matter. Eight other WTO members (the European Union, Australia, Brazil, Argentina, Nicaragua, Guatemala, Uruguay and Thailand) joined the consultations as third parties. The WTO consultations, held on February 7, 2007, did not resolve the issue.


Canada isn't finished yet.

Canada raised concerns that U.S. corn subsidies were causing, or threatening to cause, serious prejudice to Canadian corn growers by significantly suppressing Canadian prices. Canada has chosen not to include this element in the current request for a WTO Panel. However, our case on Total AMS includes the same programs, and the subsidies paid out to U.S. corn farmers under these programs, that were at issue in the WTO consultations on serious prejudice. Canada retains the right to seek a WTO panel on serious prejudice on corn at a later date.


TK: This news should add to the drama of the House Agriculture Committee's work on the farm program in upcoming days and weeks. At least the fruit and vegetable industry doesn't have to worry about the WTO stripping away billions in subsidies, since they had none to start with.