World Trade Organization

• Author: International Law Group

On August 30, 2004, the Appellate Body of the World Trade Organization (WTO) issued its report on the U.S. complaint entitled: "Canada - Measures Relating to Exports of Wheat and Treatment of Imported Grain." In its Report, the Dispute Settlement Panel (DSP) addressed the U.S. claim that the export regime of the Canadian Wheat Board (CWB) is inconsistent with GATT 1994, and that certain aspects of Canada's bulk grain handling system and the rail transport clash with GATT 1994 and the Agreement on Trade-Related Investment Measures (TRIMs).

The Panel concluded, however, that the U.S. "has failed to establish its claim that Canada has breached its obligations under Article XVII:1 of the GATT 1994 because the CWB Export Regime necessarily results in the CWB making export sales that are not in accordance with the principles of subparagraphs (a) or (b) of Article XVII:1." (Paragraph 7.4(a)). The U.S. appealed, raising procedural and substantive issues.

The Appellate Body now essentially affirms. It holds, inter alia, that the...