(Canadian Press)
Canadian pork
producers say they'll continue to fight what they call unfair duties on live hog exports which were upheld Monday by the U.S. Commerce Department.
Washington's ruling - which included some good news
for the Canadian industry - is just the latest in a growing series of nasty and expensive trade tiffs between Canada and the United States. From the multi-billion-dollar softwood lumber dispute to continued
American efforts to keep the border closed to cattle and wheat exports, Canadian commodity producers warn that jobs and future prosperity are at stake.
"Not only in hogs, but in so many other
commodities...(Canada) is a resource-rich country that depends on exports, so solving these problems in a way that doesn't harm us is crucial for the livelihoods of every Canadian," said Clare Schlegel,
president of the Canadian Pork Council."And if the U.S. is allowed to pick us off one at a time, it's going to hurt the Canadian economy."
The U.S. Commerce Department did lower average
anti-dumping duties on live hog imports to 10.63 per cent from a preliminary decision last summer of 14.06 per cent.
A final determination on injury is expected next month by the U.S. International
Trade Commission. If it finds there's no real injury posed by Canadian imports to the American hog market, that will end the duties. However, Canadian producers vow to appeal if the U.S. International Trade
Commission determination goes against them and upholds these new anti-dumping duties.
Dumping occurs when a country exports goods at below market value, an accusation that Canadian hog producers deny.
"Canada and the U.S. operate in the same integrated North American pork market. Canadian swine producers are no more dumping than are U.S. hog producers," said Schlegel.
"Despite a
trade law written to find dumping in almost every case, Canadian pigs and hogs are not injuring the U.S., but rather contribute to the very success of the North American sector."
The hog case
came the same day that cash-strapped Canadian cattle producers had expected to resume exports of live cattle across a border shut almost two years ago by a case of mad cow disease. There have been three
cases since. Continued legal delays in the U.S., however, are keeping the border closed to many Canadian cattle exports.
There was some positive news Monday when the U.S. Commerce Department
reconfirmed its August 2004 preliminary determination that Canadian hog producers don't receive countervailable subsidies. That was welcomed by Trade Minister Jim Peterson. "Supply and demand determine
prices, not the pricing practices of Canadian exporters," Peterson said in a statement. "Although this is an unfortunate dispute, it is important to note there is an improvement in the calculation
of the duty and the recognition that there is no subsidy."
This trade tiff has already been costly for hog producers who fear it will eventually lead to lower hog prices across North America,
driving some out of business.As many as 15,000 producers across Canada - most in Ontario, Alberta, Manitoba, and Saskatchewan - exported about $700 million worth of swine in 2004, mostly to the U.S.And
already, they've spent more than $10 million to fight for their continued right to sell into the American market without penalty, said Schlegel.He called on Ottawa to work harder to clarify trade rules at
the World Trade Organization.
Federal officials have in the past acknowledged that the rules don't always seem to work or take a long time to implement. A case in point is the long-running dispute
that threatens a $10-billion softwood lumber industry concentrated in Quebec and British Columbia, said NDP Trade critic Peter Julian."The (Liberal) government's approach is clearly not working, it is
not producing effective results," Julian said Monday, shortly after he returned from an all-party trade mission to Washington.
"There is an ongoing logjam on softwood lumber, despite the
fact that Canadians continue to win on the issue when it's before trade tribunals." |
