EU, Australia, Argentina, Brazil join Canada in WTO complaint against U.S. corn subsidies [View All]

[Judi Lynn]

EU, Australia, Argentina, Brazil join Canada in WTO complaint against U.S. corn subsidies
By Bradley S. Klapper
ASSOCIATED PRESS

9:29 a.m. January 22, 2007

DAVOS, Switzerland – The European Union, Australia, Argentina and Brazil have joined Canada in a complaint against the United States over what they claim are illegal government handouts to American corn growers, trade officials said Monday.

The request for consultations, filed by the four trading powers and others at the Geneva-based World Trade Organization, threatens a major commercial dispute at a time when global free trade talks remain stalled over agricultural tariffs and subsidies and the U.S. begins debating a new multibillion-dollar farm bill.

Under WTO rules, a three-month consultation period is required before a country can ask the trade body to launch a formal investigation. A WTO case can result in punitive sanctions being authorized, but panels take many months, and sometimes years, to reach a decision.

Canada lodged its complaint on Jan. 8, claiming that some $9 billion paid out by the U.S. annually in export credit guarantees and other subsidies unfairly and illegally deflated international corn prices.

“This is not just about corn,” said Clodoaldo Hugueney, Brazilian ambassador to the WTO. “Brazil is the world's largest ethanol exporter, so this is an important issue for us.”
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http://www.signonsandiego.com/news/business/20070122-0929-wto-us-corn.html