Canada-Wheat : Discrimination, Non-Commercial Considerations, and State Trading Enterprises

Statutory marketing boards that have exclusive authority to purchase domestic production, sell for export, and set purchase and sales prices of commodities are a type of state trading enterprise that is subject to World Trade Organization disciplin...

Full description

Bibliographic Details
Main Authors: Hoekman, Bernard, Trachtman, Joel
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ID
WTO
Online Access:http://documents.worldbank.org/curated/en/2007/08/8193181/canada-wheat-discrimination-non-commercial-considerations-state-trading-enterprises
http://hdl.handle.net/10986/7286
id okr-10986-7286
recordtype oai_dc
spelling okr-10986-72862021-04-23T14:02:34Z Canada-Wheat : Discrimination, Non-Commercial Considerations, and State Trading Enterprises Hoekman, Bernard Trachtman, Joel ACCORD ADEQUATE OPPORTUNITY ADMINISTRATIVE COSTS ADVERSE EFFECTS AFFECTING IMPORTS AGREEMENT ON AGRICULTURE AGRICULTURAL ECONOMICS AGRICULTURAL PRODUCT AGRICULTURAL PRODUCTS AGRICULTURAL TRADE ALLOCATION MECHANISMS ANTI-DUMPING DUTIES APPELLATE BODY APPELLATE BODY REPORT AVERAGE PRICE AVERAGE PRICES BORROWING COMMERCE COMMITTEE ON AGRICULTURE COMPETITION ISSUES COMPETITION POLICY CONDITIONS OF PURCHASE CONSUMERS CONTRACTING PARTIES COOPERATIVES COUNTERVAILING DUTIES COURNOT COMPETITION CREDITS DEBT DEVELOPMENT POLICIES DEVELOPMENT POLICY DIFFERENTIAL PRICING DIFFERENTIAL TREATMENT DISCRIMINATORY PRACTICES DISCRIMINATORY PRICING DISPUTE SETTLEMENT DOMESTIC MARKET DOMESTIC PRODUCERS DOMESTIC PRODUCTION DUMPING ECONOMIC DEVELOPMENT ECONOMIC POLICY ECONOMIC POWER ECONOMIC THEORY ECONOMIES OF SCALE EXCLUSION EXCLUSIVE RIGHTS EXPLOITATION EXPORT COMPETITION EXPORT MARKETING EXPORT MARKETS EXPORT SUBSIDIES EXPORT SUBSIDY EXPORTS EXTERNAL TRADE EXTERNALITIES FARMERS FOREIGN BUYERS FOREIGN INVESTMENT FOREIGN MARKETS GOOD FAITH GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT REGULATION ID IMPORTED GOODS IMPORTED PRODUCTS INTERNATIONAL BANK INTERNATIONAL CONFERENCE INTERNATIONAL LAW INTERNATIONAL RULES INTERNATIONAL TRADE INTERNATIONAL TRADE LAW LEGAL FRAMEWORK LOAN LOAN GUARANTEES MARKET ACCESS MARKET CONSTRAINTS MARKET LEADERSHIP MARKET POWER MARKET PRICE MARKET SHARE MARKETING MARKETING BOARDS MINIMUM STANDARDS MONOPOLIES MONOPOLY MULTINATIONAL MULTINATIONAL CORPORATIONS NATIONAL TREATMENT NATIONAL TREATMENT OBLIGATIONS NATURAL RESOURCES OLIGOPOLY OPERATIONAL COSTS PANEL REPORT PANEL REVIEW PANEL STAGE PERFECT COMPETITION PLANNED ECONOMIES POLICY BASIS POLICY RESEARCH PREMIUM PRICE PRICE DISCRIMINATION PRICE SETTING PRICE STABILIZATION PRICE SUPPORT PRICING SCHEME PRIVATE ENTERPRISES PRODUCER PRICES PRODUCERS PRICES PRODUCT DIFFERENTIATION PROFIT MAXIMIZATION PUBLIC POLICY PURCHASING RELEVANT MARKET SALE SALES SMALL FARMERS SPECIAL FINANCING SUBSIDIZATION SUPPLIERS SURPLUS TAXATION THIRD MARKETS TOTAL OUTPUT TRADE LAW TRADE NEGOTIATIONS TRADE POLICY TRADING SYSTEM TRANSACTION COSTS URBAN AREAS URUGUAY ROUND WORLD MARKET WORLD MARKETS WORLD TRADE ORGANIZATION WTO Statutory marketing boards that have exclusive authority to purchase domestic production, sell for export, and set purchase and sales prices of commodities are a type of state trading enterprise that is subject to World Trade Organization disciplines. This paper assesses a recent dispute brought by the United States against Canada, alleging that WTO rules require state trading enterprises to operate solely in accordance with commercial considerations and that the Canadian government did not require the Canadian Wheat Board to do so. The panel and Appellate Body found that the primary discipline of the WTO regarding state trading enterprises was nondiscrimination, and that operating on the basis of "commercial considerations" was not an independent obligation. Instead, WTO disciplines regarding the pricing behavior of state trading enterprises use a "commercial considerations" test as a possible indicator of discrimination. Although a significant degree of price discrimination is observed in the case of Canadian wheat exports, there are economic arguments why this might also be pursued by a private, profit maximizing firm. 2012-06-06T18:02:56Z 2012-06-06T18:02:56Z 2007-08 http://documents.worldbank.org/curated/en/2007/08/8193181/canada-wheat-discrimination-non-commercial-considerations-state-trading-enterprises http://hdl.handle.net/10986/7286 English Policy Research Working Paper; No. 4337 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Canada
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCORD
ADEQUATE OPPORTUNITY
ADMINISTRATIVE COSTS
ADVERSE EFFECTS
AFFECTING IMPORTS
AGREEMENT ON AGRICULTURE
AGRICULTURAL ECONOMICS
AGRICULTURAL PRODUCT
AGRICULTURAL PRODUCTS
AGRICULTURAL TRADE
ALLOCATION MECHANISMS
ANTI-DUMPING DUTIES
APPELLATE BODY
APPELLATE BODY REPORT
AVERAGE PRICE
AVERAGE PRICES
BORROWING
COMMERCE
COMMITTEE ON AGRICULTURE
COMPETITION ISSUES
COMPETITION POLICY
CONDITIONS OF PURCHASE
CONSUMERS
CONTRACTING PARTIES
COOPERATIVES
COUNTERVAILING DUTIES
COURNOT COMPETITION
CREDITS
DEBT
DEVELOPMENT POLICIES
DEVELOPMENT POLICY
DIFFERENTIAL PRICING
DIFFERENTIAL TREATMENT
DISCRIMINATORY PRACTICES
DISCRIMINATORY PRICING
DISPUTE SETTLEMENT
DOMESTIC MARKET
DOMESTIC PRODUCERS
DOMESTIC PRODUCTION
DUMPING
ECONOMIC DEVELOPMENT
ECONOMIC POLICY
ECONOMIC POWER
ECONOMIC THEORY
ECONOMIES OF SCALE
EXCLUSION
EXCLUSIVE RIGHTS
EXPLOITATION
EXPORT COMPETITION
EXPORT MARKETING
EXPORT MARKETS
EXPORT SUBSIDIES
EXPORT SUBSIDY
EXPORTS
EXTERNAL TRADE
EXTERNALITIES
FARMERS
FOREIGN BUYERS
FOREIGN INVESTMENT
FOREIGN MARKETS
GOOD FAITH
GOVERNMENT POLICIES
GOVERNMENT POLICY
GOVERNMENT REGULATION
ID
IMPORTED GOODS
IMPORTED PRODUCTS
INTERNATIONAL BANK
INTERNATIONAL CONFERENCE
INTERNATIONAL LAW
INTERNATIONAL RULES
INTERNATIONAL TRADE
INTERNATIONAL TRADE LAW
LEGAL FRAMEWORK
LOAN
LOAN GUARANTEES
MARKET ACCESS
MARKET CONSTRAINTS
MARKET LEADERSHIP
MARKET POWER
MARKET PRICE
MARKET SHARE
MARKETING
MARKETING BOARDS
MINIMUM STANDARDS
MONOPOLIES
MONOPOLY
MULTINATIONAL
MULTINATIONAL CORPORATIONS
NATIONAL TREATMENT
NATIONAL TREATMENT OBLIGATIONS
NATURAL RESOURCES
OLIGOPOLY
OPERATIONAL COSTS
PANEL REPORT
PANEL REVIEW
PANEL STAGE
PERFECT COMPETITION
PLANNED ECONOMIES
POLICY BASIS
POLICY RESEARCH
PREMIUM PRICE
PRICE DISCRIMINATION
PRICE SETTING
PRICE STABILIZATION
PRICE SUPPORT
PRICING SCHEME
PRIVATE ENTERPRISES
PRODUCER PRICES
PRODUCERS PRICES
PRODUCT DIFFERENTIATION
PROFIT MAXIMIZATION
PUBLIC POLICY
PURCHASING
RELEVANT MARKET
SALE
SALES
SMALL FARMERS
SPECIAL FINANCING
SUBSIDIZATION
SUPPLIERS
SURPLUS
TAXATION
THIRD MARKETS
TOTAL OUTPUT
TRADE LAW
TRADE NEGOTIATIONS
TRADE POLICY
TRADING SYSTEM
TRANSACTION COSTS
URBAN AREAS
URUGUAY ROUND
WORLD MARKET
WORLD MARKETS
WORLD TRADE ORGANIZATION
WTO
spellingShingle ACCORD
ADEQUATE OPPORTUNITY
ADMINISTRATIVE COSTS
ADVERSE EFFECTS
AFFECTING IMPORTS
AGREEMENT ON AGRICULTURE
AGRICULTURAL ECONOMICS
AGRICULTURAL PRODUCT
AGRICULTURAL PRODUCTS
AGRICULTURAL TRADE
ALLOCATION MECHANISMS
ANTI-DUMPING DUTIES
APPELLATE BODY
APPELLATE BODY REPORT
AVERAGE PRICE
AVERAGE PRICES
BORROWING
COMMERCE
COMMITTEE ON AGRICULTURE
COMPETITION ISSUES
COMPETITION POLICY
CONDITIONS OF PURCHASE
CONSUMERS
CONTRACTING PARTIES
COOPERATIVES
COUNTERVAILING DUTIES
COURNOT COMPETITION
CREDITS
DEBT
DEVELOPMENT POLICIES
DEVELOPMENT POLICY
DIFFERENTIAL PRICING
DIFFERENTIAL TREATMENT
DISCRIMINATORY PRACTICES
DISCRIMINATORY PRICING
DISPUTE SETTLEMENT
DOMESTIC MARKET
DOMESTIC PRODUCERS
DOMESTIC PRODUCTION
DUMPING
ECONOMIC DEVELOPMENT
ECONOMIC POLICY
ECONOMIC POWER
ECONOMIC THEORY
ECONOMIES OF SCALE
EXCLUSION
EXCLUSIVE RIGHTS
EXPLOITATION
EXPORT COMPETITION
EXPORT MARKETING
EXPORT MARKETS
EXPORT SUBSIDIES
EXPORT SUBSIDY
EXPORTS
EXTERNAL TRADE
EXTERNALITIES
FARMERS
FOREIGN BUYERS
FOREIGN INVESTMENT
FOREIGN MARKETS
GOOD FAITH
GOVERNMENT POLICIES
GOVERNMENT POLICY
GOVERNMENT REGULATION
ID
IMPORTED GOODS
IMPORTED PRODUCTS
INTERNATIONAL BANK
INTERNATIONAL CONFERENCE
INTERNATIONAL LAW
INTERNATIONAL RULES
INTERNATIONAL TRADE
INTERNATIONAL TRADE LAW
LEGAL FRAMEWORK
LOAN
LOAN GUARANTEES
MARKET ACCESS
MARKET CONSTRAINTS
MARKET LEADERSHIP
MARKET POWER
MARKET PRICE
MARKET SHARE
MARKETING
MARKETING BOARDS
MINIMUM STANDARDS
MONOPOLIES
MONOPOLY
MULTINATIONAL
MULTINATIONAL CORPORATIONS
NATIONAL TREATMENT
NATIONAL TREATMENT OBLIGATIONS
NATURAL RESOURCES
OLIGOPOLY
OPERATIONAL COSTS
PANEL REPORT
PANEL REVIEW
PANEL STAGE
PERFECT COMPETITION
PLANNED ECONOMIES
POLICY BASIS
POLICY RESEARCH
PREMIUM PRICE
PRICE DISCRIMINATION
PRICE SETTING
PRICE STABILIZATION
PRICE SUPPORT
PRICING SCHEME
PRIVATE ENTERPRISES
PRODUCER PRICES
PRODUCERS PRICES
PRODUCT DIFFERENTIATION
PROFIT MAXIMIZATION
PUBLIC POLICY
PURCHASING
RELEVANT MARKET
SALE
SALES
SMALL FARMERS
SPECIAL FINANCING
SUBSIDIZATION
SUPPLIERS
SURPLUS
TAXATION
THIRD MARKETS
TOTAL OUTPUT
TRADE LAW
TRADE NEGOTIATIONS
TRADE POLICY
TRADING SYSTEM
TRANSACTION COSTS
URBAN AREAS
URUGUAY ROUND
WORLD MARKET
WORLD MARKETS
WORLD TRADE ORGANIZATION
WTO
Hoekman, Bernard
Trachtman, Joel
Canada-Wheat : Discrimination, Non-Commercial Considerations, and State Trading Enterprises
geographic_facet Canada
relation Policy Research Working Paper; No. 4337
description Statutory marketing boards that have exclusive authority to purchase domestic production, sell for export, and set purchase and sales prices of commodities are a type of state trading enterprise that is subject to World Trade Organization disciplines. This paper assesses a recent dispute brought by the United States against Canada, alleging that WTO rules require state trading enterprises to operate solely in accordance with commercial considerations and that the Canadian government did not require the Canadian Wheat Board to do so. The panel and Appellate Body found that the primary discipline of the WTO regarding state trading enterprises was nondiscrimination, and that operating on the basis of "commercial considerations" was not an independent obligation. Instead, WTO disciplines regarding the pricing behavior of state trading enterprises use a "commercial considerations" test as a possible indicator of discrimination. Although a significant degree of price discrimination is observed in the case of Canadian wheat exports, there are economic arguments why this might also be pursued by a private, profit maximizing firm.
format Publications & Research :: Policy Research Working Paper
author Hoekman, Bernard
Trachtman, Joel
author_facet Hoekman, Bernard
Trachtman, Joel
author_sort Hoekman, Bernard
title Canada-Wheat : Discrimination, Non-Commercial Considerations, and State Trading Enterprises
title_short Canada-Wheat : Discrimination, Non-Commercial Considerations, and State Trading Enterprises
title_full Canada-Wheat : Discrimination, Non-Commercial Considerations, and State Trading Enterprises
title_fullStr Canada-Wheat : Discrimination, Non-Commercial Considerations, and State Trading Enterprises
title_full_unstemmed Canada-Wheat : Discrimination, Non-Commercial Considerations, and State Trading Enterprises
title_sort canada-wheat : discrimination, non-commercial considerations, and state trading enterprises
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/08/8193181/canada-wheat-discrimination-non-commercial-considerations-state-trading-enterprises
http://hdl.handle.net/10986/7286
_version_ 1764402282606100480