The United States and New Zealand asked the World Trade Organization on Thursday last week forformal permission to impose trade sanctions on Canada over milk exports. The two countries want to increase import tariffs on Canadian goods by $35 million per year each because they claim their dairy industries are being harmed by cheap Canadian exports. Following complaints from New Zealand and the United States, the WTO, which sets rules on international trade, decided in 1999 that Canada was providingillegal subsidies for milk destined for export. That decision was upheld on appeal. Canada claims it has since changed its subsidies system so that it meets WTO rules. It says the government is no longer involved in subsidizing dairyproducts because the matter has been put under the jurisdiction of individual provinces. The WTO agreed Thursday to ask the panel of trade experts which ruled on the original dispute to decide whether Canada is now in compliance. They willhave 90 days to produce their report. Source:Associated Press
