The World Trade Organization agreed Monday to appoint a panel of experts to rule on U.S. claims that Canada is illegally subsidizing wheat exports.

Associated Press

GENEVA — The World Trade Organization agreed Monday to appoint a panel of experts to rule on U.S. claims that Canada is illegally subsidizing wheat exports.

The U.S. administration requested the panel after failing to come to an agreement with Canadian officials over the issues at the Geneva-based body that sets rules on international trade. The North Dakota Wheat Commission, the U.S. Durum Growers Association and the Durum Growers Trade Action Committee had complained to the U.S. government, contending that the Canadian Wheat Board undercuts the price of U.S. wheat to gain market share in the United States and around the world.

The Winnipeg-based board controls buys all the wheat and barley produced for human consumption in Western Canada, at a price fixed by the Canadian government.

The American farmers say the board receives government support, which means farmers are being indirectly subsidized, in contravention of WTO rules.

Members of the board have rejected the U.S. allegations and say they abide by international trade agreements.

The U.S. complaint also cites Canadian rules that segregate imported grain from domestic Canadian grain and says Ottawa's laws also make it more expensive to transport imported grain by railroad.

The three-person panel likely will take a year to make a ruling.