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<p><span style="font-size: 14pt"><span> </span></span></p>
<p><span style="font-size: 14pt"><span> </span></span></p>
<br>
<p><span style="font-size: 14pt"><span style="font-weight: bold">April 8, 2004<span>                         </span><i>(6:15 p.m. EDT)</i><span>                                    </span>No. 54</span></span></p>
<br>
<p style="text-align: center"><span style="font-size: 14pt"><span style="font-weight: bold">CANADA READY TO DEFEND ITS LIVE SWINE INDUSTRY </span></span></p>
<p style="text-align: center"><span style="font-size: 14pt"><span style="font-weight: bold">AGAINST U.S. CHALLENGE</span></span></p>
<br>
<p>The Government of Canada today expressed its disappointment about the decision of
the U.S. Department of Commerce (DOC) to pursue investigations on imports of live
swine from Canada.</p>
<br>
<p>“We believe that any investigation into allegations made by the U.S. industry will show
that our hog exports are not subsidized,” said International Trade Minister Jim Peterson.
“The United States decided in 1999 that our exports were fairly traded, and this is still
the case today.”</p>
<br>
<p>On March 5, 2004, the U.S. National Pork Producers Council filed a petition with the
U.S. DOC requesting countervailing and anti-dumping duty investigations on imports of
live hogs from Canada.</p>
<br>
<p>“We will work closely with the industry and the provinces to defend our live swine export
industry,” said Agriculture and Agri-Food Minister Bob Speller. “The Agriculture and
Agri-Food Canada programs referred in these allegations are whole-farm programs
available to all producers.”</p>
<br>
<p>The U.S. investigations are governed by U.S. trade remedy law and the WTO
agreements dealing with countervailing and anti-dumping measures.</p>
<br>
<p>Duties cannot be imposed until a series of determinations are made by U.S. authorities,
including findings on subsidization, dumping and injury to the U.S. domestic industry as
a result of the imports.</p>
<br>
<p>In 2003, Canada exported approximately 7.4 million hogs, valued at $554 million,
primarily from Ontario, Manitoba, Saskatchewan and Alberta. The U.S. is the principal
market for Canadian live swine exports.</p>
<br>
<p style="text-align: center">- 30 -</p>
<p>A backgrounder is attached.</p>
<br>
<p>For further information, media representatives may contact:</p>
<br>
<p>Jacqueline LaRocque<br>
Director of Communications<br>
Office of the Minister of International Trade<br>
(613) 992-7332</p>
<br>
<p>Media Relations Office<br>
Foreign Affairs Canada and International Trade Canada<br>
(613) 995-1874</p>
<br>
<p>Carla Ventin<br>
Press Secretary<br>
Office of the Minister of Agriculture and Agri-Food<br>
(613) 759-1346</p>
<br>
<p>Media Relations<br>
Agriculture and Agri-Food Canada<br>
(613) 759-7972</p>
<br>
<p>This document is also available on the Internet site of Foreign Affairs Canada and
International Trade Canada: <a href="https://bac-lac.wayback.archive-it.org/web/20071206233517/http://www.dfait-maeci.gc.ca/"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.dfait-maeci.gc.ca</span></span></a><span style="color: #000000">.</span></p>
<br>
<br>
<p style="text-align: center"><span style="color: #000000"><span style="font-size: 14pt"><span style="font-weight: bold">Backgrounder</span></span></span></p>
<br>
<p><span style="color: #000000">The National Pork Producers Council, representing U.S. swine producers, filed a
petition on March 5, 2004, with the U.S. Department of Commerce (DOC) requesting
countervailing and anti-dumping duty investigations on imports of live swine from
Canada. The allegations are that live swine from Canada are being sold at less than fair
value and that Canada is unfairly subsidizing imports of live swine.</span></p>
<br>
<p><span style="color: #000000">Federal officials held consultations in Washington, D.C., on March 19 with U.S. officials
to highlight serious deficiencies in the allegations raised by the U.S. industry in its
petition.</span></p>
<br>
<p><span style="color: #000000">On April 8, 2004, the Government of Canada was notified by the U.S. DOC that it had
initiated investigations as sought by the National Pork Producers Council.</span></p>
<br>
<p><span style="color: #000000">Anti-dumping and countervailing duties cannot be imposed until a series of
determinations are made by the U.S. DOC, including findings on subsidization and
dumping. The U.S. International Trade Commission must also determine whether injury
to the U.S. domestic industry is linked to the imports.</span></p>
<br>
<p><span style="color: #000000">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 below the cost of producing the goods.</span></p>
<br>
<p><span style="color: #000000">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.</span></p>
<br>
<p><span style="color: #000000">On the subsidy side, now that the U.S. DOC has initiated an investigation, the earliest
date when preliminary countervailing duties could be collected is June 11, 2004. </span></p>
<p><span style="color: #000000">The earliest date when preliminary anti-dumping duties could be collected is </span></p>
<p><span style="color: #000000">August 25, 2004.</span></p>
<br>
<p><span style="color: #000000">Countervailing duties were in place from 1985 until the end of 1999. The U.S.
concluded in 1999 that our exports were fairly traded. The federal and provincial
governments worked closely with the Canadian industry in defending the interests of
Canadian exporters during that period, and will do so again.</span></p>
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