U.S. wins challenge to Canadian dairy subsidies - Trade Notes - Brief Article

AgExporter, April, 2003

The United States won an important victory when a WTO (World Trade Organization) Appellate Body decided that Canada continues to provide illegal subsidies to its dairy industry, even after revising its practices due to previous WTO decisions. This is the second time the WTO has decided against Canada's illegal dairy export subsidies.

Canadian dairy export subsidies result in lost sales to American farmers and dairy processors of up to $35 million per year. The Appellate Body found that Canada's commercial export milk program provides an export subsidy, in the form of discounted milk, to Canadian processors who use that milk in cheese and other dairy products for the export market. The WTO findings establish an important precedent that should prevent other countries from adopting similar export subsidy programs harmful to U.S. agriculture.