. /.WORLD TRADE
ORGANIZATIONWT/DS276/9
1 July 2003
(03-3536)
Original:  English
CANADA - MEASURES RELATING TO EXPORTS OF WHEAT
AND TREATMENT OF IMPORTED GRAIN
Request for the Establishment of a Panel by the United States
The following communication, dated 30 June 2003, from the Permanent Mission of the
United States to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of
the DSU.
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The United States considers that certain measures of the Government of Canada are
inconsistent with Canada's obligations under the General Agreement on Tariffs and Trade 1994
("GATT 1994") and the Agreement on Trade-Related Investment Measures ("TRIMs Agreement").
(1) The Government of Canada has establishe d the Canadian Wheat Board ("CWB"), and has
granted to this enterprise exclusive and special privileges.  These exclusive and special privileges
include the exclusive right to purchase western Canadian wheat for export and domestic human
consumption at a price determined by the Government of Canada and the CWB; the exclusive right to
sell western Canadian wheat for export and domestic human consumption; and government
guarantees of the CWB's financial operations, including the CWB's borrowing, the CWB's credit salesto foreign buyers, and the CWB's initial payments to farmers.
The United States understands that the legal framework of the CWB, including the control or
lack thereof by the Government of Canada and rules for setting the terms and conditions for the
CWB's purchases and sales of wheat, is established in the Canadian Wheat Board Act and associatedregulations.  The United States understands that the exclusive and special privileges specified above
are provided under the Canadian Wheat Board Act and the Canada Grain Act and these Acts'
associated regulations, and under the Credit Grain Sales Program and Agri-food Credit Facility.  The
legal framework of the CWB, Canada's provision to the CWB of the exclusive and special privileges
specified above, and the actions of the Government of Canada and the CWB with respect to theCWB's purchases and sales involving wheat exports, will hereinafter be referred to, collectively, as
the "CWB Export Regime".
The CWB Export Regime appears to be inconsistent with the obligations of the Government
of Canada under Article XVII of the GATT 1994.  In particular, the CWB Export Regime appears to
be:
• inconsistent with paragraph 1(a) of Article XVII of the GATT 1994, pursuant to which the
Government of Canada has undertaken that the CWB, in its purchases or sales involvingwheat exports, shall act in a manner consistent with the general principles of non-
discriminatory treatment pres cribed in the GATT 1994; andWT/DS276/9
Page 2
• inconsistent with paragraph 1(b) of Article XVII of the GATT 1994, pursuant to which the
Government of Canada has undertaken that the CWB shall make such purchases or salessolely in accordance with commercial considera tions and shall afford the enterprises of other
WTO Members adequate opportunity, in accordance with customary business practice, to
compete for such purchases or sales.
The apparent inconsistency of the CWB Export Regime with Canada's obligations under Article XVII
of the GATT 1994 includes the absence of any mechanism, and the failure of the Government of
Canada to take actions, to ensure that the CWB makes purchases or sales involving wheat exports in
accordance with the requirements set forth in paragraphs 1(a) and 1(b) of Article XVII.
(2) With regard to the treatment of grain that is imported into Canada, Canadian measures
discriminate against imported grain, including grai n that is the product of the United States:
• Under the Canada Grain Act and Canadian grain regulations, imported grain must be
segregated from Canadian domestic grain throughout the Canadian grain handling system;
imported grain may not be received into grain elevators; and imported grain may not be
mixed with Canadian domestic grain being received into, or being discharged out of, grain
elevators.  These measures accord to imported grain less favorable treatment than thataccorded to like Canadian grain, and thus appear to be inconsistent with the obligations of
Canada under Article III:4 of the GATT 1994 and Article 2 of the TRIMs Agreement.
• Canadian law caps the maximum revenues that railroads may receive on the shipment of
Canadian domestic grain, but not revenues that railroads may receive on the shipment of
imported grain.  In addition, in allocating railcars used for the transport of grain under theauthority of Section 87 of the Canada Grain Act, Canada provides a preference for domestic
grain over imported grain.  These measures concerning rail transportation accord to imported
grain less favorable treatment than that accorded  to like domestic grain, and thus appear to be
inconsistent with the obligations of Canada under Article III:4 of the GATT 1994 and
Article 2 of the TRIMs Agreement.
On 17 December 2002, the United States Government requested consultations with the
Government of Canada pursuant to Article 4 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes  ("DSU"), Article XXII:1 of the GATT 1994, and Article 8 of
the TRIMs Agreement (to the extent it incorporates by reference Article XXII of the GATT 1994).The United States and Canada held such consultations on 31 January 2003.  The consultations did not
resolve the dispute.
Accordingly, the United States respectfully requests the Dispute Settlement Body to establish
a panel pursuant to Article 6 of the DSU to examine this matter with the standard terms of reference
as set out in Article 7.1 of the DSU.  The United States further asks that this request for a panel be
placed on the agenda for the next meeting of the Dispute Settlement Body.
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