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Canada challenges U.S. corn subsidies at WTO
POSTED: 2:10 p.m. EDT, January 9,2007

Canada has requested consultations with the United States at the World Trade Organization (WTO) on subsidies provided to U.S. corn growers, as well as on the total level of U.S. agricultural support, International Trade Minister David Emerson and Agriculture Minister Chuck Strahl said Monday.

"The United States has been providing subsidies to its agricultural producers that create unfair market advantages," said Emerson.

"We hope to see the U.S. live up to its WTO obligations, particularly given that it has the opportunity to do so when it rewrites its farm bill this year," he said.

The Canadian government said the U.S. corn subsidies have averaged almost 9 billion U.S. dollars per year over the past two years.

Canada also argues that total U.S. trade-distorting support for agriculture -- which includes wheat, sugar and other crops -- has exceeded Washington's commitment to the WTO in certain years.

Brazil, Argentina and Mexico may also join the Canadian challenge, reports said.

The U.S. accounted for 41 percent of global corn production in 2005-2006 and 68 percent of all corn exports during that period, according to Canadian government statistics.

From:Xinhua
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