NEWS RELEASES
August 17, 2004 (7:00 p.m. EDT) No. 94
CANADA WELCOMES U.S. DECISION ON LIVE SWINE
The Government of Canada today expressed its satisfaction with the United States
Department of Commerce (DOC)’s preliminary countervailing decision, which found that
trade in Canadian live swine is not unfairly subsidized.
“The Canadian swine industry is among the most competitive in the world, and is a fair
international trader,” said Minister of International Trade Jim Peterson. “We will
continue to stand behind our programs and our hog exporters.”
“We are pleased that Canada's fair trading practices are reflected in today's decision,”
said Minister of Agriculture and Agri-Food Andy Mitchell. “Canada will continue to
defend the interests of Canadian swine exporters, in consultation with stakeholders and
the provinces, and will continue to ensure that its international trade rights are being
fully respected.”
The DOC is also conducting an anti-dumping investigation. The preliminary
determination in this case is not due until October 14. Final determinations for both the
anti-dumping and countervailing cases are expected by the end of the year.
The U.S. International Trade Commission will make a final injury determination in
mid-February 2005 if the case extends beyond the end of the year.
In 2003, hog exports from Canada were valued at $554 million, with Ontario, Manitoba,
Saskatchewan and Alberta being the primary exporters. The U.S. is the principal market
for Canadian live swine exports.
The DOC also found in 1999 that the Canadian swine were fairly traded.
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A backgrounder is attached.
For further information, media representatives may contact:
Jacqueline LaRocque
Director of Communications
Office of the Minister of International Trade
(613) 992-7332
Media Relations Office
Foreign Affairs Canada and International Trade Canada
(613) 995-1874
http://www.international.gc.ca
Bryan Kirk
Press Secretary
Office of the Minister of Agriculture and Agri-Food
(613) 759-1059
Media Relations
Agriculture and Agri-Food Canada
(613) 759-7972
BACKGROUNDER
On March 5, 2004, the National Pork Producers Council (NPPC), a group representing
U.S. swine producers, filed a petition with the U.S. Department of Commerce (DOC)
requesting countervailing and anti-dumping duty investigations on imports of live swine
from Canada. The petition alleged that Canada is unfairly subsidizing live swine
exported to the U.S., and that live swine imported from Canada are being sold at less
than fair value (dumped).
The U.S. DOC is responsible for determining whether the products under investigation
are being subsidized and/or dumped. The U.S. International Trade Commission (ITC) is
responsible for determining whether the domestic industry in the U.S. has been injured
or is threatened with injury by reason of the dumped and/or subsidized imports. The two
organizations perform their investigations concurrently.
On April 8, 2004, the Government of Canada was notified by the DOC that it had
initiated investigations at the request of the NPPC.
Countervail investigation
On May 5, 2004, the DOC issued an initial questionnaire to the federal and provincial
governments as well as to a limited number of swine producers/exporters. The DOC
was looking for information on the Canadian programs that allegedly provide
countervailable subsidies.
The federal government prepared its response in close consultation with industry and
provincial representatives. On June 30, 2004, the Canadian government submitted its
response to the countervail questionnaire.
On July 14, 2004, the DOC sent a supplemental questionnaire to the Canadian
government, the governments of Alberta, Saskatchewan, and Manitoba, and certain
swine producers/exporters. On August 4, 2004, the federal government submitted its
response.
Anti-dumping investigation
On May 27, 2004, the DOC issued an anti-dumping questionnaire to the Canadian
industry. The Canadian industry’s anti-dumping response was filed on July 6, 2004. In
the event of an affirmative preliminary anti-dumping finding by the DOC, the earliest
date when provisional anti-dumping duties could be collected would be October 14,
2004.
Injury investigation
On May 7, 2004, the U.S. ITC, in a preliminary determination, decided by a vote of 6-0
that imports of Canadian swine are causing material injury to the U.S. domestic live
swine industry. As a result of this decision, the DOC and the ITC continued their
respective investigations.
Today’s decision
Following today’s preliminary determination by the DOC, provisional countervailing
duties will not be imposed on imports of live swine from Canada. However, the DOC
will proceed with further investigation, including a verification exercise related to the
information submitted by the federal government and other Canadian parties.
The DOC’s final determination on subsidy is not expected until the end of the year. If
that determination remains negative, the investigation will end. If the DOC makes an
affirmative determination of subsidy, the ITC’s final determination on injury would not be
expected until mid-February 2005.
The Canadian government will continue to actively defend the interests of the Canadian
exporters in close consultation with both the industry and provinces.
Definitions
A countervailing duty is a special duty imposed to protect a domestic industry from
injury caused by imports that have benefited from subsidies provided by a foreign
government. Subsidies that are generally available, i.e., that are not directed specifically
at an enterprise, industry or group of enterprises or industries, are not countervailable.
An anti-dumping duty is a special duty imposed to protect a domestic industry from
goods sold in that market at prices below those charged for comparable sales in the
producer’s home market, or sold at a price less than the cost of producing the goods.
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