The United States on Wednesday blocked a complaint by Canada at the World Trade Organisation which claims that Washington uses "trade-distorting" farm subsidies on products such as corn, trade sources said.
Canada filed the claim earlier this month, saying Washington violated WTO commitments on subsidies to a wide variety of crops including corn, wheat, soybeans, sugar, peas and beans. In 1999, 2000, 2001, 2002, 2004 and 2005, the US exceeded its WTO commitments on subsidies by billions of dollars each year, Canada said.
The measures at issue include a broad range of agriculture subsidies and export credit guarantees, Canada added in its filing to the WTO's Disputes Settlement Body. Under WTO rules, the dispute will automatically be heard by the DSB if Canada renews its complaint. The US said it was "disappointed" at the Canadian move, and added there was no basis to the claims that its agriculture subsidies were trade-distorting.
"The United States carefully crafted its farm programs to support US farmers within the negotiated WTO limits on spending. The United States has provided support within those limits, and, therefore, consistently with our WTO obligations," the US representative said. Washington added that both countries would be better off working to ensure that the currently logjammed Doha round of global trade talks boost farm trade.
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