June 9, 2006

 

Corn producers fight trade ruling

 

 

Canada's corn growers are filing a suit with the Federal Court of Appeal saying they are hurt by subsidised corn imported from the United States.

 

Corn growers are seeking a judicial review of a trade ruling that found they were not harmed by subsidised imports.

 

Canadian corn producers were angered when the Canadian International Trade Tribunal ruled Apr 18 that subsidised American corn had not damaged their industry.

 

The decision lifted a duty of US$1.47 US a bushel that had been imposed on American corn imports by the Canadian Border Services Agency.

 

Canadian corn growers alleged subsidised imports have dragged down market prices

 

The tribunal however, ruled that it was the rising Canadian dollar that was the real reason corn growers in Canada were suffering.

 

The Canadian Corn Producers' view is that the tribunal's decision is patently unreasonable, said Bill Hearn, lawyer representing the growers.

 

Hearn said the tribunal was wrong to argue that it was the Canadian dollar appreciation, and not American dumping, that is hurting Canadian growers.

 

Dumping and subsidising were a factor in the injury to Canadian producers, and the appreciation of the Canadian dollar made a bad situation worse, Hearn said.

 

The Federal Court of Appeal could take a year to issue a ruling.

 

If the corn growers are successful in their appeal, the court has the power to order an injury finding, he said, but it is much more likely to instruct the trade tribunal to review its decision.