A World Trade Organization (WTO) dispute settlement panel has exonerated the Canadian Wheat Board (CWB) from American claims of unfair trade practices. In a ruling released today on a challenge launched by the United States government in March 2003, the WTO panel affirms the CWB conducts its business in compliance with international trade laws.

"This is a major victory for western Canadian farmers," said Ken Ritter, chair of the board of directors. "The Americans took their case to the most important court of international trade and the panel's ruling demonstrates what we have known all along - that the complaints leveled against the CWB are just politically motivated rhetoric. We are fair traders, with full legal rights to exist and operate as we currently do."

Ritter, who farms near Kindersley, Saskatchewan, said while he was pleased with the vindication he was frustrated with the continued U.S. government trade harassment of western Canadian farmers. "The CWB is here to stay. It's the system that western Canadian farmers want because it works well for us. We prefer to market our grain through an agency that we control that's looking to make a buck for us rather than a multinational grain company that's looking to make a buck off of us."

The ruling, by a WTO dispute settlement panel convened March 31, 2003 to investigate the U.S. challenge, dismissed the U.S. complaints that the CWB operates in violation of Article XVII of the General Agreement on Tariffs and Trade (GATT). The panel dismissed the heart of the U.S. complaint about the CWB, namely that its very structure makes it incapable of acting commercially. On the contrary, the panel found that because the CWB is controlled by the farmers whose grain it markets rather than by the Government of Canada, its incentive is to get the best return it can for that grain.. The final report will be made public sometime next month.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.