October 18, 2004

Canadian Hog Sector Disappointed By US Antidumping Duties

Canadian pork producers expressed disappointment with preliminary antidumping duties on live Canadian hogs shipped to the US. The US Department of Commerce announced the news on Friday.
 
Responding to complaints from the US pork industry, the Commerce Department announced preliminary duties ranging from 0.38% (de minimus) to 15.01% on the four Canadian exporters singled out in its investigation. An "all-others" rate was set at 14.06%. The duties are expected to come into effect on Oct. 20, according to sources.
 
"The duties announced today will have a profound effect upon the nation's swine exporters," said Karl Kynoch, chairman of the Manitoba Pork Council.
 
"Although I am pleased that one of the Manitoba companies investigated by the Commerce Department was absolved of dumping charges at this stage, I am frustrated that the single-weighted margins, of 14.06%, is being imposed on all other Manitoba and Canadian exporters," said Kynoch.
 
"This decision is unfair to Ontario hog farmers," said Larry Skinner, chair of Ontario Pork, in a news release. He said the province's hogs are fairly traded and sold at the same price in both Canada and the US.
 
 "Ontario farmers should not have to defend themselves against protectionist litigation," he added.
 
Canada was cleared of accusations that it receives illegal government subsidies in a preliminary determination on the countervailing duty case on Aug. 17. The final determinations on both the countervailing duty and the antidumping investigations are scheduled for March 7.
 
The Canadian hog industry plans to continue its challenge of the antidumping duties and remain confident that the trade cases will eventually be dismissed. If the International Trade Commission eventually finds that the imports of live hogs did not injure the US hog industry, the case will end and any duty deposits will be refunded, said both provincial organizations.