UNITED STATES – SUBSIDIES AND OTHER DOMESTIC SUPPORT FOR CORN AND OTHER AGRICULTURAL PRODUCTS
Document: Request for the Establishment of a Panel by Canada
Date: 9 November 2007
Document codes: WT/DS357/12
Complainant: Canada
Respondent: U.S.
Third parties: Argentina, Australia, Chile, EU, India, Japan, Mexico, New Zealand, Nicaragua, South Africa, Taiwan, Thailand, Turkey, Uruguay
Dispute stage: Panel
Agreements cited: Art. 10.1, 8  AgricultureArt. 3.1(a), 3.2  Subsidies and Countervailing Measures (SCM)Art. 3.2  Agriculture

UNITED STATES – SUBSIDIES AND OTHER DOMESTIC SUPPORT
FOR CORN AND OTHER AGRICULTURAL PRODUCTS

Request for the Establishment of a Panel by Canada

 The following communication, dated 8 November 2007, from the delegation of Canada to the
Chairman of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

 On 7 February 2007, Canada and the United Stat es held consultations with respect to whether
the domestic support the United States provided in favour of its agricultural producers exceeded the
commitment levels specified in Section I of Part IV of its Schedule, contrary to Article 3.2 of the
Agreement on Agriculture . While the discussions were useful and clarified a number of issues, they
did not resolve Canada’s serious concerns regard ing the Current Total Aggregate Measurement of
Support provided by the United States. Accordingl y, my authorities have now instructed me to
request the establishment of a panel.

Pursuant to Articles 4, 6 and 7.1 of the Understanding on Rules and Procedures Governing
the Settlement of Disputes , Article XXIII of the General Agreement on Tariffs and Trade 1994 , and
Article 19 of the Agreement on Agriculture, Canada requests that the Dispute Settlement Body
("DSB") establish a panel with the standard terms of reference to consider the following matter:

That the United States’ Current Total Aggregate Measurement of Support has
exceeded its commitment levels in each of the years
1 1999, 2000, 2001, 2002, 2004
and 2005, contrary to Article 3.2 of the Agreement on Agriculture.
 Pursuant to Article 3.2 of the Agreement on Agriculture, the United States committed to limit
its Current Total Aggregate Measurement of Support to the annual levels specified in section I of Part
IV of its Schedule: for the year 1999, USD 19, 899.264 million and for each subsequent year, USD
19,103.294 million. Despite this, the United St ates’ Current Total Aggregate Measurement of
Support provided by the measures 2 at issue, when properly calc ulated in accordance with the
provisions of the Agreement on Agriculture, has exceeded its commitment levels in each of the years
1999, 2000, 2001, 2002, 2004 and 2005, in violation of Article 3.2 of this agreement. These
violations nullify or impair the benefits accruing to Canada under the Agreement on Agriculture.

 The measures at issue are those identified in th e Annex, which forms an integral part of this
request. The measures further include any other legi slation, regulations and other instruments not
identified in the Annex, by which any of the support under the identified measures was provided.

 Canada asks that this request for the establis hment of a panel be placed on the agenda of the
DSB meeting scheduled for 19 November 2007.

1 In this request, "year" has the meaning assigned to it in Article 1(i) of the Agreement on Agriculture.
2 In this request, "measures" refers to support programs as well as support provided pursuant to those
programs.

ANNEX

 In this Annex, where possible, Canada (a) identifies measures by the name or description used
by the United States in its yearly Table DS:1 notifications3 as well as its periodic Table DS:2
notifications of new and modified measures 4 (collectively the "Notifications"), and (b) relies upon the
Notifications to identify the legal authority for those measures. Canada also identifies additional legal
authority where appropriate. The years to whic h each measure relates are specified in the
Notifications. Reference to measures identified in the Notifications is without prejudice to whether the
notified amounts of support or categorization of measures are accurate.
 This Annex also identifies by name or descr iption measures not notified by the United States
and the legal authority for those measures. The years to which each of the non-notified measures
relates are specified in this Annex.
 Each measure identified in this Annex comprises the support program ( i.e., the overall design,
structure and/or legal mechanism by which support is determined and/or granted) and the support
provided pursuant to the support program. Thus, the use of terms such as "measures", "support",
"payments" or "program" in this Annex encompasses both the support program and the support itself.

Measures Legal Authority for the Measures
(PL numbers refer to Public Laws identified in the appended table)
Adjustment assistance program The No tifications identify: Section 32, Agricultural Adjustment Act of 1935
American Indian livestock feed
program
The Notifications identify: PL 91-524, U.S.C. §1427A; PL 108-324.

Canada has identified the following additional legal authorities: Section
806, PL 106–387, 114 Stat. 1549A–51; and Title 7 C.F.R. part 1439.
Biodiesel program payments The Notifications identify: PL 107-171.

Canada has identified the following additional legal authorities: Executive
Order 13134 of 1999; and Title 7 C.F.R., part 1424.
Bioenergy program payments The Notifications identify: PL 107-171.

Canada has identified the following additional legal authorities: Executive
Order 13134 of 1999; and Title 7 C.F.R., part 1424.
California Tri-Valley market loss The Notifications identify: Section 843, PL 106-387.
Cattle feed program The Notifications identify: Section 32, Agricultural Adjustment Act of
1935; and Section 165, PL 104-127.
Certificate exchange gains The Notifications identify: PL 104-127; and Section 812, Subtitle B, Title
VIII, PL 106-78.

Canada has identified the following additional legal authorities: Title
7 CFR, Chapter XIV, Part 1401, § 1401.4; and PL 107-171.

3 Notifications G/AG/N/USA/43 of 5 February 2003 for year 1999, G/AG/N/USA/51 of 17 March
2004 for years 2000 and 2001, and G/AG/N/USA/60 of 8 October 2007 for years 2002 to 2005.
4 G/AG/N/USA/5 of 16 September 1996, G/AG/N/USA/25 of 11 March 1999, G/AG/N/USA/28 of
16 November 1999, G/AG/N/USA/37 of 5 October 2001, G/AG/N/USA/58 of 9 October 2007, and
G/AG/N/USA/59 of 9 October 2007.

Measures Legal Authority for the Measures
(PL numbers refer to Public Laws identified in the appended table)
Commodity loan forfeit The Notifications identify: Section 801, Title VIII, PL 106-78; Section 812
and Section 844, PL 106-387.

Canada has identified the following additional legal authorities:
Title 7 CFR, Chapter XIV, Part 1405, Section 1405; PL 104-127, and
PL 107-171.
Commodity loan interest subsidy The Notifications iden tify: Section 1126, PL 105-277; Section 801, Subtitle
A, Title VIII, PL 106-78; Section 203, PL 106-224; Section 204,
PL 106-224, Section 812, PL 106-387; and PL 107-171.

Canada has identified the following additional legal authorities: Title
7 CFR, Chapter XIV, Part 1401, § 1401.4; and PL 104-127.
Commodity Purchases, Emergency
Surplus Removals, and Funds for
Strengthening Markets, Income and
Supply (Section 32)
The Notifications identify: Section 32, Agricultural Adjustment Act of
1935.

Canada has identified the following additional legal authorities:
Title 7 U.S.C., Chapter 26, Subchapter III, §612c; and PL 107-76.
Cotton seed payments The Notifications identify: PL 105-277; Section 204, PL 106-224; Section
6, PL 107-25; and PL 108-7.

Canada has identified the following additional legal authorities:
PL 108-324; and PL 109-234.
Countercyclical payments The Notifications identify: Title I, PL 107-171.
Crop and revenue insurance
subsidized by the Federal Crop
Insurance Corporation
No legal authority identified in the Notifications.

Canada has identified the following legal authorities: PL 96-365;
PL 103-354; PL 106-224; PL 109-97; and Title 7 U.S.C., Chapter 36,
§ 1516.
Crop disaster payments The Notifications identify: Food Security Act of 1985; Disaster Assistance
Acts of 1988 and 1989 and subsequently [sic in the notifications];
PL 106-78; PL 106-387; PL 108-07; PL 108-324; PL 110-28.

Canada has identified the following additional legal authorities: Section
741, PL 107-76; PL 107-171; PL 109-234.
Crop market loss assistance
payments
The Notifications identify: Section 802, Subtitle A, Title VIII, PL 106-78;
PL 106-224.

Canada has identified the following additional legal authorities: Section
801, Title VIII, PL 106-78; Section 1617, Subtitle F, Title I, PL 107-171.
Dairy disaster payments The Notifications identify: PL 109-234.
Dairy farmer indemnity program For years: 1999, 2000, 2001, 2002, 2004, 2005.
Title 7 U.S.C., Chapter 17, § 450j & § 450k.
Dairy hurricane indemnity The Notifications identify: PL 108-324.
Dairy indemnities No legal authority identified in Notifications.
Dairy market loss payment The Notifications iden tify: PL 106-78; Section 805, PL 106-387.
Dairy market loss payment (MILC)
(includes also MILCX although not
identified in Notifications)
No legal authority identified in Notifications.

Canada has identified the following legal authorities: Section 1502, Subtitle
E, Title I, PL 107-171; and Section 1101, Subtitle A, Title I, PL 109-171.

Measures Legal Authority for the Measures
(PL numbers refer to Public Laws identified in the appended table)
Dairy production disaster assistance The Notifications id entify: Title VIII, PL 105-277; and Title II, PL 105-174
Direct payments The Notifica tions identify: PL 107-171.
Disaster Reserve Assistance
Program
No legal authority identified in Notifications.
Diversion payments The Notifications identify: PL 99-198.
Emergency Feed Assistance
Program
No legal authority identified in Notifications.

Canada has identified the following legal authorities: Emergency Livestock
Feed Assistance Act of 1998 (reauthorized by Title X, Subtitle B, Section
10104, PL 107-171); and Title 7 C.F.R. Part 1439.
Emergency Feed Program No legal authority identified in Notifications.
Emergency loans for seed producers The Notifications identify: PL 106-224.

Canada has identified the following additional legal authorities: Section
10103, Subtitle B, Title X, PL 107-171.
Farm storage facility loans The Notifications iden tify: Commodity Credit Corporation Charter Act.
Feed Indemnity Program The Notifications identify: Section 32, Agricultural Adjustment Act of
1935.
Flood Compensation Program The Notifications identify: PL 105-277.

Canada has identified the following additional legal authority: Title II,
Subtitle F, Section 257, PL 106-224.
Florida Citrus Disaster Program The Notifications id entify: Section 32, Agricultural Adjustment Act of
1935.
Florida Nursery Crop Disaster
Program
The Notifications identify: Section 32, Agricultural Adjustment Act of
1935.
Florida Vegetable, Fruit and
Tropical Fruit Disaster Program
The Notifications identify: Section 32, Agricultural Adjustment Act of
1935.
Florida hurricane disaster programs
(includes the Florida Citrus,
Nursery Crop, and Fruit and
Vegetable and Tropical Fruit
Disaster programs)
The Notifications identify: Section 32, Agricultural Adjustment Act of
1935.
Forage Assistance Program The Notifications identif y: 1988 Disaster Assistance Act; and PL 105-174.
Gulf hurricanes disaster program
(this is a heading in the
Notifications for Tree indemnity
program, Feed indemnity program,
Livestock indemnity program, and
Hurricane indemnity program)
The Notifications identify: Section 32, Agricultural Adjustment Act of 1935
Hard White Wheat Incentive
Program
For years: 2004, 2005.
Section 1616, Subtitle F, Title I, PL 107-171.
Hard white wheat payments The Notifications identify: PL 107-171.
Hawaiian sugar transportation
payments
No legal authority identified in the Notifications.

Measures Legal Authority for the Measures
(PL numbers refer to Public Laws identified in the appended table)
Hurricane Indemnity Program The Notifications iden tify: Section 32, Agricultural Adjustment Act of
1935.
2005 Hurricanes Citrus, Fruit and
Vegetable Disaster, Nursery and
Tropical Fruit Programs
The Notifications identify: PL 109-234.
Irrigation and provision of power at
subsidized rates to store and move
irrigation water, related to Bureau
of Reclamation projects in 17
Western states
No legal authority identified in the Notifications.

Canada has identified the following legal authorities: Reclamation Act of
1902; Reclamation Projects Act of 1939 as amended; Marine Protection
Research and Sanctuaries Act of 1972 - Section 103; Reclamation Reform
Act of 1982 and other acts codified in Title 43 U.S.C., Chapter 12
(particularly subchapter X thereof); the Central Valley Project Improvement
Act of 1992; contracts between Bureau of Reclamation and water districts;
Army Corps of Engineers Statutory Authorities (Rivers and Harbors Act of
1899; Water Resources Development Acts of 1986, 1988, 1990, 1992,
1996, 1999, 2000; Title 33 U.S.C. Chapter 36); and Section 404, Clean
Water Act.
Livestock assistance program The Notifications identify: PL 108-07; and PL 108-324.

Canada has identified the following additional legal authorities: Section 32
of the Agricultural Adjustment Act of 1935; Title I, Subtitle C, Section 132,
PL 106-224; PL 104-127; Title IX, Section 9002, PL 110-28.
Livestock compensation payments The Notifications identify: PL 110-28.
Livestock compensation program The Notifications identify: Section 32, Agricultural Adjustment Act of
1935; and PL 108-07.
Livestock feed assistance For years 1999, 2000, 2001, 2002, 2004, 2005.
Section 32 of the Agricultural Adjustment Act of 1935; Title V,
Agricultural Act of 1970, as amended; PL 104-127; Title VIII, Subtitle A,
PL 106-78; Section 806, PL 106–387; PL 108-07; PL 108-324; Title 7
U.S.C., Chapter 35A, Subchapter V; and Title 7 C.F.R., Chapter XIV, Part
1439.
Livestock Hurricane Programs The Notifications identify: PL 109-234.
Livestock indemnity payments The Notifications identify: PL 110-28.
Livestock Indemnity Program The Notifications identify: Section 32, Agricultural Adjustment Act of
1935; PL 105-18; PL 105-119; PL 106-31; PL 105-86; PL 106-78.

Canada has identified the following additional legal authorities: PL 110-28.
Livestock Pilot Programs For years: 2000, 2001, 2002, 2004, 2005.
Section 132, Subtitle C, PL 106-224.
Loan Deficiency Payments The Notifications identif y: Title I, Subtitle C, PL 104-127; Section 812,
PL 106-387; PL 107-171.

Canada has identified the following additional legal authorities: Section
801,Title VIII, PL 106-78; Subtitle C, PL 104-127.
Loan Deficiency Payments for
Unshorn Pelts
For years: 2002, 2004, 2005.
Section 1205, PL 107-171.
Market loss payments (identified for
apples and for cranberries)
The Notifications identify: PL106-387; Section 741, PL 107-76; and
Sections 10105 and 10106, PL 107-171.

Measures Legal Authority for the Measures
(PL numbers refer to Public Laws identified in the appended table)
Market loss payments (identified for
mohair and for wool)
The Notifications identify: Section 204, Title II, PL 106-224; Section 814,
PL 106-387; and Section 5, PL 107-25.
Market loss payments (identified for
peanuts)
The Notifications identify: Section 803, Title VIII, PL 106-78; Section 204,
PL 106-224; and Section 3, PL 107-25.
Market loss payments (identified for
potatoes)
Notifications include only reference to AMS News Release No. 078-01,
April 2001.
Market loss payments (identified for
tobacco)
The Notifications identify: Section 803, Title VIII, PL 106-78; Section 204,
PL 106-224; Section 4, PL 107-25; PL 107-76; and PL 108-07.
Marketing loan gains The Notifications identify: Title I, Subtitle C, PL 104-127; Section 812,
PL 106-387.

Canada has identified the following additional legal authorities: Title I,
PL 107-171; Title I, PL 104-127.
Marketing loan payments No legal authority identified in Notifications.

Canada has identified the following legal authorities: Subtitle C, Title I,
PL 104-127; and Subtitle B, Title I, PL 107-171.
Marketing loans No legal authority identified in Notifications.

Canada has identified the following legal authority: Title I, PL 104-127.
Michigan fire blight tree assistance
program
The Notifications identify: PL 108-83.
Milk Income Loss Contracts
(MILC)
The Notifications identify: PL 107-171.
Multi-year crop disaster payments The Notifica tions identify: Section 1102, PL 105-277.
Net Federal budget outlays for
grazing livestock on Federal Land
No legal authority identified in Notifications.
Noninsured Crop Disaster
Assistance Program (NAP)
The Notifications identify: PL 103-354; and PL 106-224.

Canada has identified the following additional legal authority: PL 104-127.
Non-recourse loan and loan-related
payments
The Notifications identify: Title I, Subtitle C, PL 104-127; and PL 107-171.

Canada has identified the following additional legal authority: Section 812,
PL 106-387.
Nonrecourse Marketing Assistance
Loans and Loan Deficiency
Payments
For 1999, 2000, 2001, 2002, 2004, 2005.
Subtitle C, Title I, PL 104-127; Section 812, PL 106-387; and PL 107-171.
Non-recourse program (identified
for honey)
The Notifications identify: Section 812, PL 106-387; and PL 107-171
Northeast dairy compact The Notifications identify: Title I, Subtitle D, Chapter 1, PL 104-127.
Northeast dairy compact benefit The Notifications iden tify: Title I, Subtitle D, Chapter 1, PL 104-127.
Oilseed payments The Notifications identify: T itle I, Subtitle C, PL 104-127; Section 804,
Subtitle A, Title VIII, PL 106-78; Section 202, PL 106-224; and Section 2,
PL 107-25.
Pasture Recovery Program The Notifications identify: PL 106-78.

Measures Legal Authority for the Measures
(PL numbers refer to Public Laws identified in the appended table)
Payments in Lieu of Loan
Deficiency Payments for Grazed
Acreage
For years: 2002, 2004, 2005.
Section 1206, Subtitle B, Title I, PL 107-171.
Price support/quota (identified for
dairy)
No legal authority identified in Notifications.

Canada has identified the following legal authorities: Chapter 1, Subtitle D,
Title I, PL 104-127; Subtitle E, Title I, PL 107-171, and Title 7 U.S.C.,
Chapter 26, Subchapter III, § 627.
Price support/quota (identified for
peanuts)
No legal authority identified in Notifications.

Canada has identified the following legal authority: Chapter 2, Subtitle D,
Title I, PL 104-127.
Price support/quota (identified for
sugar)
No legal authority identified in Notifications.

Canada has identified the following legal authorities: Chapter 2, Subtitle D,
Title I, PL 104-127; and Subtitle D, Title I, PL 107-171.
Production Flexibility Contract
Payments
The Notifications identify: PL 104-127.
Quality loss payments The Notifications identify: PL 106-387.
Recourse Loans for High Moisture
Feed Grains and Seed Cotton
For years: 1999, 2000, 2001, 2002, 2004, 2005.
Title I, Subtitle C, Section 137, PL 104-127; and Title I, Subtitle B, Section
1209, PL 107-171.
Recourse loans (identified for
honey)
The Notifications identify: Section 801, Title VIII, PL 106-78; and Section
204, PL 106-224.
Recourse loans (identified for
mohair)
The Notifications identify: Section 1126, PL 105-277; and Section 801,
Subtitle A, Title VIII, PL 106-78.
Rio Grande water loss assistance
program
The Notifications identify: PL 108-7.
Section 32 Disaster Assistance,
January 2006, distributed through
the Hurricane Indemnity Program
(HIP), the Tree Indemnity Program
(TIP), the Livestock Indemnity
Program (LIP), and the Feed
Indemnity Program (FIP)
The Notifications identify: Section 32, Agricultural Adjustment Act of
1935.
Special Competitive Provisions for
Extra Long Staple Cotton
Section 1208, Subtitle B, Title I, PL 107-171.
Special Marketing Loan Provisions
for Upland Cotton
Section 1207, Subtitle B, Title I, PL 107-171.
Specialty/Nursery crops hurricane
disaster program
The Notifications identify: PL 109-234.
State credit programs No legal authority identified in Notifications.
Storage payments The Notifications identify: Su btitle F, Title I, PL 104-127; and PL 107-171.
Sugar beet disaster program The Notifications identify: PL 108-7.
Sugar cooperative payment Th e Notifications identify: Section 822, PL 106-387.

Measures Legal Authority for the Measures
(PL numbers refer to Public Laws identified in the appended table)
Sugarcane disaster payments The Notifications identify: PL 109-234.

Canada has identified the following additional legal authority: PL 108-07.
Sugarcane hurricane loss payments The Notifications identify: PL 108-324.
Sugarcane hurricane program The Notif ications identify: PL 108-7.
Tobacco quota buyout The Notifications identify: Title VI, PL 108-357.
Trade adjustment assistance Th e Notifications identify: PL 107-171; and PL 107-210.
Tree Assistance Program The Notifications identify: 1988 Disaster Assistance Act and subsequent
disaster assistance acts; PL 105-174; PL 108-83; PL 108-324; PL 109-234.

Canada has identified the following additional legal authorities: Subtitle C,
Title X, PL 107-171; and Division A and Division H, PL 108-199.
Tree assistance program (disaster
assistance)
The Notifications identify: PL 108-324; and PL 109-234.
Tree Indemnity Program The Notifications identify: Section 32, Agricultural Adjustment Act of
1935.
User marketing payments No legal authority identified in Notifications.

Canada has identified the following legal authorities: Section 136, Title I,
PL 104-127; and Title I, PL 107-171.
Various additional emergency
programs, including for crops, feed,
and livestock
For years: 1999, 200, 2001, 2002, 2004, 2005.
Section 32 of the Agricultural Adjustment Act of 1935; PL 105-174;
PL 105-277; PL 106-31; PL 106-78; PL 106-113; PL 106-224;
PL 106-246; PL 106-387; PL 107-20; PL 107-25; PL 107-76; PL 107-171;
PL 107-206; PL 108-7; PL 108-83; PL 108-199; PL 108-324; PL 109-234;
and PL 110-28.
Warehouse disaster payments The Notifications identify: Section 803, PL 106-78; and Appendix E,
Chapter 1, PL 106-113.