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1 (September 18, 2007)

handle is hein.crs/crsnalcaaalh0001 and id is 1 raw text is: Order Code RS22724 September 18, 2007 s CRS Report for Congress Canada's WTO Case Against U.S. Agricultural Support: A Brief Overview Randy Schnepf Specialist in Agricultural Policy Resources, Science, and Industry Division Summary On June 7, 2007, the Canadian government requested the establishment of a World Trade Organization (WTO) dispute settlement panel to consider two charges against U.S. farm programs first, that the United States has exceeded its annual commitment levels for total Aggregate Measurement of Support (AMS) in each of the years 1999, 2000, 2001, 2002, 2004, and 2005, and second, that the U.S. export credit guarantee program operates as a WTO-illegal export subsidy. Both charges stem from a previous negative ruling against U.S. farm programs in a case brought by Brazil against the U.S. cotton program. The United States blocked Canada's request from proceeding at the June 21, 2007, meeting of the WTO's Dispute Settlement Body (DSB). According to WTO rules, a panel can only be blocked once, implying that a second request by Canada would have to be honored at a subsequent DSB meeting. However, Canada has since refrained from pursuing its panel request at subsequent biweekly DSB meetings. Canadian officials appear to be deliberating the merits of further action, particularly in light of a similar case against U.S. AMS limits being pursued by Brazil. Should any eventual changes in U.S. farm policy be needed to comply with a WTO ruling in Canada's favor, it would likely involve action by Congress to produce new legislation. For a detailed discussion of the U.S.-Canada WTO dispute settlement AMS case, see CRS Report RL33853, Canada's WTO Case Against U.S. Agricultural Support, by Randy Schnepf. This report will be updated as events warrant. Introduction The United States and Canada conduct the world's largest bilateral trade relationship, with total merchandise trade (exports and imports) reaching $533.7 billion in 2006 Congressional Research Service , The Library of Congress Prepared for Members and Committees of Congress

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