CANADA TAKES WHEAT DISPUTE TO WTO

Saskatchewan supports the federal government's recent decision to trigger the first stage of the World Trade Organization's (WTO) dispute settlement process by requesting consultations with the United States regarding its finding that imports of Canadian hard red spring wheat are injuring U.S. producers.

Canada requested the consultations with the U.S. on April 8th, 2004 through the WTO as part of ongoing efforts to remove the countervailing and anti-dumping duties placed on Canadian hard red spring wheat exports.

"The U.S. is unjustified in imposing the 14.15 per cent duties on Canadian wheat exports and has failed to present any reasonable evidence that our wheat shipments are injuring U.S. producers," Agriculture, Food and Rural Revitalization Minister Mark Wartman said.

If these consultations fail to resolve the trade dispute, Canada can subsequently request the WTO to proceed to a full dispute settlement panel. However, the latter is unlikely to yield any results for Canadian wheat farmers before next summer. Such delays are costly for the industry, as access to the U.S. market will remain restricted.

"The Government of Saskatchewan will continue to work closely with the federal government and other key stakeholders to defend its interests as this case moves forward," Government Relations Minister Len Taylor said.

Saskatchewan hard red spring wheat exports to the U.S. for the last five years averaged approximately $100 million, or about 10 per cent of Saskatchewan's total hard red spring wheat exports.

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For More Information, Contact:

Scott Brown Agriculture, Food and Rural Revitalization Regina Phone: (306)787-4031

Anna Arneson Government Relations and Aboriginal Affairs Regina Phone: (306)787-8008