March 17, 2006

 

Canadian court rules US dumping subsidised corn in Canada

 

 

An investigation by the Canadian Border Services Agency said unprocessed corn is being subsidised and dumped in Canada at cut-rate prices, sparking off the likely possibility of higher tariffs for US corn.

 

US corn imports account for more than a fifth of Canadian supply.

 

Canadian hog and cattle farmers could be among those hit hardest if Canada increased tariffs on corn, which is widely used in feed.

 

Pork producers estimated the measure could add as much as US$8 to the cost of raising each animal.

 

Livestock farmers say the tariffs could force them to export young animals to the United States to save on feeding costs or even move operations to the US.

 

Canada imposed preliminary duties of US$1.65 a bushel on US corn last December while it investigated complaints from Canadian growers that subsidised corn imports from the US is destroying their livelihoods.

 

The Canadian Border Services Agency said final duties could be US$1.47 a bushel, a duty rate that is more than 60 percent of current corn prices.

 

Opponents of the tariffs say the strengthening of the Canadian dollar in recent years is to blame, not US corn. Other industry experts warned that only would feed prices be affected- any food product that uses corn could experience a price increase as well.

 

Canadian corn growers welcomed yesterday's ruling, saying preliminary duties imposed last December have already helped prices.

 

Brian Doidge, general manager of the Ontario Corn Producers Association, said corn producers are targeting US subsidies, not Canadian corn users. He said his sector would prefer government support over tariffs on American producers, adding that there is a need for the government to introduce meaningful programmes for corn producers.