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The Canadian Wheat Board: Government Guarantees and Hidden Subsidies?

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  • Goodloe, Carol

Abstract

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.

Suggested Citation

  • Goodloe, Carol, 2004. "The Canadian Wheat Board: Government Guarantees and Hidden Subsidies?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 5(2), pages 1-18.
    • Handle: RePEc:ags:ecjilt:23899
    DOI: 10.22004/ag.econ.23899
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    File URL: https://ageconsearch.umn.edu/record/23899/files/05020102.pdf
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    References listed on IDEAS

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    1. Steve McCorriston & Donald MacLaren, 2001. "State Trading Enterprises: Some Legal and Conceptual Issues," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 49(4), pages 415-428, December.
    2. Veeman, M. & Fulton, M. & Larue, B., 1999. "International Trade in Agricultural and Food Products: The Role of State Trading Enterprises," Papers 1999, Gouvernement du Canada - Agriculture Canada.
    3. Colin A. Carter & R.M.A. Loyns & Derek Berwald, 1998. "Domestic Costs of Statutory Marketing Authorities: The Case of the Canadian Wheat Board," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 313-324.
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    Cited by:

    1. Rude, James & Meilke, Karl D., 2005. "Implications of the July 2004 WTO Framework Agreement for Canadian Agriculture," Commissioned Papers 24159, Canadian Agricultural Trade Policy Research Network.
    2. Rude, James & Meilke, Karl D., 2006. "Canadian Agriculture and the Doha Development Agenda: The Challenges," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 7(1), pages 1-17.
    3. Thompson, Wyatt, 2007. "Inconsistent Objectives of Agricultural Export Credit Disciplines," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 8(1), pages 1-13.

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