The Honourable David Emerson, Minister of International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics, and the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, announced today that Canada is requesting the establishment of a World Trade Organization (WTO) dispute settlement panel on the issue of U.S. trade-distorting domestic agricultural subsidies.

“Canada believes that the United States has breached its international obligations by providing agricultural subsidies that exceed the levels allowed by the WTO,” said Minister Emerson. “This panel request complements our efforts in the Doha negotiations to further discipline and reduce trade-distorting agricultural subsidies.”

“The government expects the United States to live up to its WTO commitments,” said Minister Ritz. “By requesting this panel, we are trying to level the playing field for Canadian farmers who have to compete against the large distorting agricultural subsidies provided by the U.S.”

It is Canada’s view that when trade-distorting domestic support is properly accounted for under the WTO Agreement on Agriculture, the United States exceeded its WTO commitment in 1999, 2000, 2001, 2002, 2004 and 2005.

Canada’s concerns are shared by Brazil. Brazil is also announcing today that it is requesting a WTO dispute settlement panel on U.S. agricultural subsidies. Canada and Brazil have been working together to coordinate their challenges. Given the similarities, it is expected that their cases will be heard by a single panel.