NEWS RELEASES
U.S. INVESTIGATION CONFIRMS NO COUNTERVAILABLE SUBSIDY ON CANADIAN CATTLE
U.S. INVESTIGATION CONFIRMS NO COUNTERVAILABLE SUBSIDY ON CANADIAN
CATTLE
OTTAWA, Oct. 14, 1999 - Agriculture and Agri-Food Minister Lyle Vanclief and International Trade Minister
Pierre Pettigrew said today they are pleased with a U.S. Department of Commerce (DOC) ruling which keeps
Canadian cattle free from countervailing duties.
"The U.S. ruling on countervailing duties is a victory for the Canadian cattle industry. It confirms what Canada
has always maintained -- Canada's live cattle industry is not unfairly subsidized," said Minister Pettigrew. "The
result also proves the value of an international rules-based trading system which ensures that trade disputes
are resolved on the level-playing field of the rule of law," the Minister added.
The ruling on countervailing duties upholds a May 4 preliminary decision that existing Canadian subsidies do
not justify the imposition of a provisional countervailing duty against imports of Canadian beef cattle. The
subsidy investigation is now terminated.
In a separate decision, the DOC ruled that an anti-dumping duty imposed in July will continue at the adjusted
rate of 5.63 per cent ad valorem, up slightly from the provisional rate of 5.57 per cent. That duty will only
become permanent if the U.S. International Trade Commission rules in November that imports from Canada
are injuring or threatening injury to the U.S. industry.
"It's obvious Canadian imports are not injuring U.S. cattle producers," said Minister Vanclief. "It is ridiculous to
allege that Canadian cattle are responsible for U.S. prices when the U.S. industry is eight times larger than
ours. To put things in perspective, imports from Canada account for less than four per cent of total cattle
slaughtered in the U.S."
While both investigations were initiated at the request of the Ranchers-Cattlemen's Action Legal Fund (R-CALF), one examines levels of government assistance and the other considers pricing practices by the
industry. The subsidy investigation confirmed that the Canadian cattle industry did not receive subsidies from
federal and provincial governments sufficient to justify imposition of countervailing duties. The dumping
investigation determined that cattle were sold in the U.S. market at prices below their cost of production.
2
The Ministers noted that the low cattle prices during the time of the investigation were an indication of a
down-cycle in the industry on both sides of the border.
-30-
For more information, media representatives may contact:
Vern Greenshields
Mr. Vanclief's Office
Ottawa
(613) 759-1020
Suzanne Vinet
International Trade Policy Directorate
Agriculture and Agri-Food Canada
Ottawa
(613) 759-7675
Sylvie Bussières
Office of the Minister for International
Trade Canada
Ottawa
(613) 992-7332
Media Relations
Department of Foreign Affairs
and International Trade Canada
Ottawa
(613) 995-1874
| 
