Corn growers cautious on WTO cotton ruling

(Resource News International) — A recent World Trade Organization (WTO) ruling
which found the US failed to stop illegal cotton subsidies may
only provide indirect support for Canadian corn growers
pressing for an end to US corn subsidies.

Theresa Bergsma, secretary-manager of the Manitoba Corn
Growers’ Association and spokesperson for the Canadian Corn
Producers (CCP) coalition, said it is difficult to say at this point
what direct effect, if any, the WTO ruling will have on the coalition’s
case against U.S. corn subsidies.

“It’s hard to say how it will affect us, because these
things can be looked at unilaterally or altogether but I would
suppose that it will support our case in that much of the
subsidies are the same type of issues that we are taking the
U.S. to task for.”

“Anything adds weight if it makes the U.S. stand up and
take notice. But whether it will specifically have any
bearing, I’m not sure.”

On Oct. 15, a three-member WTO compliance panel ruled
that the U.S. failed to stop providing illegal subsidies to U.S.
cotton growers. The ruling opens the U.S. up to retaliatory
action by countries who claim their cotton producers suffered
as a result of the failure of the U.S. to end the illegal
subsidies.

The CCP, for its part, is pressing for an end to American
corn subsidies, which the CCP says have adverse effects for
Canadian corn farmers. The coalition represents the three provincial corn growers’ groups in Ontario, Quebec and Manitoba.

In 2006, the Canadian International Trade Tribunal (CITT)
found Canadian corn growers were not injured by U.S. farm
subsidies. The CCP voiced its disappointment with the ruling
but members were heartened when the Canadian government
requested the creation of a WTO resolution panel to
investigate U.S. agricultural subsidies. Bergsma said Brazil
supports Canada’s position on the matter, as do over 10
other countries.

When asked about the current status of the WTO panel, Bergsma
indicated that a lot of facts were still being gathered by the
panel.

“These panels are called only so often. It is moving
along but every step of the way they are asking for more stuff
and still putting a lot of information together. They’re still
having a look at things and gathering information.”

When asked whether or not Canada’s defence of supply
management products would affect Canada’s position at the WTO
panel, Bergsma replied she does not believe it will be an
issue for the panel.

“I think that for specifics, it’s a numbers game when it
comes to an actual WTO panel being called and numbers don’t
change. It’s as if we were to be taken to task for
countervail. It wouldn’t matter if the U.S. were doing the same
thing. If we’re doing and they can prove it, we’re taken to
task for it.

“When these panels are called, it is strictly
about what is happening and what the numbers are and I think
that is what the government is working on, getting numbers
together so they can get the job done.”