OTTAWA — Thirty-two countries have signed up to join Canada in a global challenge of trade-distorting U.S. farm subsidies, a coalition that may supply more ammunition to win the case and one that reflects broad anger at American agricultural aid.
Canadian and U.S. trade officials said requests to join the World Trade Organization complaint came from the 25-country European Union, as well as Argentina, Australia, Brazil, Guatemala, Nicaragua, Thailand and Uruguay.
Countries were still rushing to sign up before a deadline yesterday, and officials say it's possible the list may grow when all applicants are counted.
The case has become a lightning rod for global discontent with U.S. farm handouts in a year when an increasingly protectionist, Democrat-controlled U.S. Congress mulls fattening support.
"What Canada's done is created an opening for the rest of the world, which is fed up with U.S. subsidies, to say 'Let's look at it from our perspective as well,' " said Peter Clark, an Ottawa trade consultant.
Earlier this month, Canada drew international headlines when it, for the first time, challenged multibillion-dollar U.S. farm subsidies at the WTO, a move that reflected a more aggressive trade policy on the Harper government's part.
The complaint targeted both the $9-billion (U.S.) in annual American corn subsidies as well as the overall farm aid that Washington doles out
Critics say that amount has exceeded $19-billion in recent years and may have reached as much as $50-billion.
Toronto trade lawyer Lawrence Herman said these countries wouldn't have joined Canada if they didn't believe there was a good case to be made.
"There will be more players lined up to take shots at the United States," said Mr. Herman, with Cassels Brock & Blackwell LLP. "Major agricultural economies are piling on because they have the same concerns that Canada has."
One of the co-complainants, the European Union, is itself a big offender when it comes to farm export subsidies. But trade watchers say Brussels is likely using this case to put more pressure on Washington in global trade talks.
Canadian farmers have for years complained that U.S. farm aid depresses the international prices for agricultural goods and consequently reduces their income.
The first step in Canada's WTO grievance is to request a consultation with the United States, talks that must take place by early February unless both sides agree to wait.
If negotiations fail, Ottawa can request an arbitration panel.
If Canada won its case, it could ultimately be awarded the right to slap subsidies on American imports, but the complaint may ultimately serve to embarrass the United States -- which considers itself the world leader on free trade -- in a high-profile international forum.
Handouts to farmers -- such as the U.S. agricultural subsidies in question -- have prevented progress in global trade talks for more than half a decade.
The inspiration for this challenge comes from a precedent-setting WTO case launched by Brazil that ultimately forced Washington to shed some of its cotton subsidies.
"I think Canada has a very good case based on the Brazilian victory in the cotton subsidies case, where many of the issues were the same," Mr. Herman said.
Former Liberal governments bemoaned U.S. farm subsidies publicly, but this month was the first time Ottawa has challenged them before the WTO, which functions as a global trade referee.
Mr. Clark said the addition of other countries may mean Washington is in for an even tougher time at the WTO because, he predicted, some of the other complainants may take an even harder line against U.S. subsidies than Canada will.
Diaper dumping accusations
Canadians are accusing the French of diaper dumping in a trade tiff that has commercial regulators scrutinizing the Gallic goods for evidence that they're being sold at unfairly low prices.
The Canada Border Services Agency is probing the matter after a complaint last year by SCA North America-Canada that dumped imports of "disposable adult incontinence briefs" from France have injured Canadian producers.
Yesterday, the Canadian International Trade Tribunal, a quasi-legal institution, announced that a preliminary inquiry had yielded evidence disclosing "a reasonable indication that the dumping of the above-mentioned goods has caused injury."
SCA North America Inc. is a producer of tissue and specialty paper products, based in Eddystone, Pa., with offices in Oakville, Ont., and Drummonville, Que.
The Canada Border Services Agency will rule by Feb. 20 on whether its preliminary probe has found dumping taking place.