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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 borrowing and export credit sales. The CWB is able to take advantage of this special privilege 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. Current WTO negotiations should build on U.S. and EU proposals on STEs and export credit guarantees to address potential trade-distorting practices of STEs such as the CWB.

Suggested Citation

  • Goodloe, Carol, 2004. "The Canadian Wheat Board: Government Guarantees and Hidden Subsidies," Agricultural Marketing Policy Papers 29160, Montana State University, Department of Agricultural Economics and Economics, Agricultural Marketing Policy Center.
  • Handle: RePEc:ags:mosmpp:29160
    DOI: 10.22004/ag.econ.29160
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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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    Keywords

    Agricultural and Food Policy;

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