The Canadian Wheat Board: Government Guarantees and Hidden Subsidies?

The operations of the Canadian Wheat Board (CWB), a state trading enterprise, have generated controversy over the years, partly because of an alleged lack of transparency in its operations. This study examines one aspect of operations that is not well understood - the government guarantee of CWB borrowings and export credit sales. This special privilege allows the CWB to generate a "financial cushion", or non-market based revenue, that it can use to enhance returns to producers, discount export prices, or pay administrative expenses. Although recent WTO dispute settlement decisions concluded the CWB does not act inconsistently with some WTO rules, the July 31, 2004 WTO Doha Round framework agreement addresses these potential trade-distorting practices of the CWB.

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Journal Article
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Estey Journal of International Law and Trade Policy, Volume 05, Number 2
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 Record created 2017-04-01, last modified 2018-01-22

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