ST. LOUIS, June 8, 2007 (PRIME NEWSWIRE) -- The National Corn Growers Association (NCGA) is pleased the Canadian government has dropped its allegations of prejudice by U.S. corn. Canada's request today to the World Trade Organization (WTO) for a dispute resolution omits its original assertions that U.S. support payments to corn growers caused serious prejudice by threatening to cause price suppression in the Canadian market for corn.
"Corn prices increased significantly in 2006 and have continued to be well above support levels," said NCGA President Ken McCauley. "Obviously, we are pleased with Canada's decision to drop their allegations and feel the facts certainly justify that decision."
The request, however, asks the panel address the issues of the overall level of U.S. trade-distorting support as well as export credit guarantee programs.
In its Jan. 8 consultation request, Canada charged the U.S. has exceeded its $19.1 billion overall annual spending cap on trade-distorting "amber box" subsidies by failing to report certain direct payments as amber box support. Canada also alleged the U.S. government violates WTO subsidy rules through its export credit guarantee program.
"We believe U.S. programs that will now be scrutinized under the WTO are in compliance," said NCGA Joint Trade Policy A-Team Chair Bob Bowman. "Corn growers can receive direct and countercyclical payments even if they do not currently plant a program crop."
In addition, the Canadian Federal Court of Appeals this week affirmed the Canadian International Trade Tribunal finding from April 2006 that imported grain corn from the United States had not caused and is not threatening to cause material injury to domestic Canadian corn producers. Canadian corn producers had claimed U.S. subsidies together with alleged dumping by U.S. producers of corn in Canadian markets were causing such injury.
The National Corn Growers Association's mission is to create and increase opportunities for corn growers. NCGA represents more than 32,000 members and 47 affiliated state organizations and hundreds of thousands of growers who contribute to state checkoff programs. For more information on NCGA, log on to www.ncga.com.