SA may play role in Canada-US trade tiff

14 January, 2007

IN A move analysts say could help restart stalled world trade negotiations, Canada has taken the US to the World Trade Organisation (WTO) over trade-distorting maize subsidies.

The case could have significant implications for SA. Industry players believe SA, as a major maize producer and exporter, would be eager to join Canada as a third party in the case.

The Canadian government said last week it had requested consultations with the US at the WTO on the almost $9bn in subsidies the US gives to maize growers every year. It is also challenging the total level of US agricultural support.

Global trade negotiations have stalled over the contentious issue of farm subsidies.

SA