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Canada Drops Allegations Against U.S. Corn

The Canadian government backed off the assertion that U.S. support payments to corn growers caused serious prejudice by threatening to cause price suppression in the Canadian market for corn.

In a dispute resolution request sent to the World Trade Organization Friday, the Canadian government dropped its previous assertions that U.S. support payments to corn growers caused serious prejudice by threatening to cause price suppression in the Canadian market for corn.

The request still asks the WTO panel to look at the overall level of U.S. trade-distorting subsidies and its export credit guarantee programs.

In a Jan. 8 consultation request, Canada claimed that the U.S. exceeded its $19.1 billion overall annual spending cap on trade-distorting "amber box" subsidies after failing to report certain direct payments. The request also charged the U.S. export credit guarantee program of violating WTO subsidy rules.

"We believe U.S. programs that will now be scrutinized under the WTO are in compliance," says National Corn Growers Association 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."

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