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Grains are Canada's largest agricultural export, comprising between 40 and 50 per cent of Canada's total agricultural exports. This study reviews the major changes that have taken place in world grain markets since 1965. It examines the international policy environment that will shape trade in wheat and coarse grains over coming years, and looks at how success or failure in the current GATT negotiations will affect Canada's position. Particular attention is paid to Canada's agricultural exports to Japan.