Canadian Government Seeks Delay in WTO Probe on U.S. Wheat Duties

The Canadian government has asked for a delay in a World Trade Organization (WTO) probe into U.S. anti-dumping and countervailing duties on Canadian hard red spring wheat exports, citing a NAFTA appeal. The delay is intended to streamline the process and avoid multiple appeals. A combined 14.6% anti-dumping and countervailing duty was imposed on CWB hard red spring wheat sales into the U.S. in October 2003.

Key Takeaways:

• The Canadian government has requested a delay in a WTO probe into U.S. anti-dumping and countervailing duties on Canadian hard red spring wheat exports, citing a NAFTA appeal.
• The delay is intended to streamline the process and avoid multiple appeals, with the NAFTA appeal process scheduled to play out over the next 6 months.
• A NAFTA panel consisting of two Canadians and three Americans has been appointed to investigate the countervailing duties, with filings complete and a hearing expected in the fall.
• On the anti-dumping side, the panel has yet to be appointed and filings are to be completed by the end of this week.
• The reduction in U.S. business is expected to cost the Canadian industry approximately C$30 million per year.
• Canada has been able to sell wheat to other markets since the U.S. duties were imposed.

Statistics:

• 14.6%: the combined anti-dumping and countervailing duty imposed on CWB hard red spring wheat sales into the U.S. in October 2003.
• 6 months: the duration of the NAFTA appeal process.
• C$30 million: the estimated annual cost to the Canadian industry due to the reduction in U.S. business.
• 2003 (October): the date the U.S. International Trade Commission ruled that CWB hard red spring wheat sales into the U.S. had hurt U.S. farmers, leading to the imposed duties.

Sources:

• Resource News International via COMTEX (Copyright 2004)
• Canadian Wheat Board (CWB) spokesperson Louise Waldman
• Phil Franz-Warkentin, Resource News