April 20, 2006

 

Canada removes duty on US grain corn imports

 

 

The Canadian International Trade Tribunal (CITT) said late Tuesday (Apr 18) it found that imports of unprocessed US grain corn have not affected and are not threatening to affect Canada's domestic industry. As a result, the duties will be removed immediately.

 

The CITT announced its decision in a brief statement.

 

"This has been a very divisive and disruptive investigation, which has hurt Canadian beef and pork producers, and has not helped corn growers," said Ian McKillop, president of the Ontario Cattlemen's Association and a director of the Canadian Cattlemen's Association.

 

Canadian Corn Producers also expressed disappointment over the CITT ruling in a release from the group on Wednesday.

 

The combined margin of dumping and amount of subsidy represented a staggering 44 percent of the export price of US grain corn, the release stated.

 

"Given the preliminary CITT injury finding, and CBSA's two subsidy and dumping findings, Tuesday's CITT decision that no injury was found obviously is disappointing", said Brian Doidge, spokesperson for the CCP and General Manager of the Ontario Corn Producers' Association.

 

The Canada Border Services Agency (CBSA) made a preliminary determination on Dec 15 that US grain corn imports to Canada are dumped and subsidised.

 

Under the CBSA's decision, duties totalling US$1.65 per bushel were imposed to prevent further injury to Canadian corn growers. A provisional anti-dumping duty was set at 58 US cents per bushel on unprocessed US corn, while a provisional countervail duty was set at US$1.07 per bushel.

 

A final determination from the CBSA regarding anti-dumping and countervailing duties on US corn on Mar 15 left the duty in place but was contingent on the CITT final injury decision.

 

The reasons for the CITT decision were expected to be issued within 15 days.

 

Animal Industry Corn Users, a coalition of the Animal Nutrition Association of Canada, the Canadian Cattlemen's Association and Canadian Pork Council, said in a release that it was pleased with the CITT ruling.

 

Kathleen Sullivan, general manager of the Animal Nutrition Association of Canada, said: "Canadian corn growers are experiencing global price pressures, and these pressures are not unique to corn producers. Most Canadian producers of grains, oilseeds and livestock are affected by world market conditions. The most serious problem for Canadian farmers is the strength of the Canadian dollar. The CITT heard evidence that currency movements over the last three years have reduced Canadian farm earnings by more than 25 percent."

 

In the US, the Corn Coalition cheered the final ruling by CITT, which it says, upholds the integrity of international trade law and ensures Canada will have enough corn to meet domestic needs.

 

The coalition membership includes the American Farm Bureau Federation, Corn Refiners Association, the National Corn Growers Association and the US Grains Council.