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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">August 17, 2004 <i>(7:00 p.m. EDT)</i> No. 94</span></span></span></p>
<br>
<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">CANADA WELCOMES U.S. DECISION ON LIVE SWINE</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">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.</span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">“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.”</span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">“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.”</span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">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. </span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">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.</span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">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.</span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">The DOC also found in 1999 that the Canadian swine were fairly traded.</span></p>
<br>
<p style="text-align: center"><span style="font-family: 'Arial', sans-serif">- 30 -</span></p>
<p>A backgrounder is attached.<span style="font-family: 'Arial', sans-serif"></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">For further information, media representatives may contact:</span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">Jacqueline LaRocque<br>
Director of Communications<br>
Office of the Minister of International Trade<br>
(613) 992-7332</span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif">Media Relations Office<br>
Foreign Affairs Canada and International Trade Canada<br>
(613) 995-1874<br>
</span><a href="https://bac-lac.wayback.archive-it.org/web/20071207022940/http://www.international.gc.ca/"><span style="font-family: 'Arial', sans-serif"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.international.gc.ca</span></span></span></a><span style="font-family: 'Arial', sans-serif"><span style="color: #000000"></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="color: #000000">Bryan Kirk</span></span></p>
<p><span style="font-family: 'Arial', sans-serif"><span style="color: #000000">Press Secretary<br>
Office of the Minister of Agriculture and Agri-Food<br>
(613) 759-1059</span></span></p>
<br>
<p><span style="color: #000000">Media Relations<br>
Agriculture and Agri-Food Canada<br>
(613) 759-7972</span></p>
<br>
<br>
<br>
<p style="text-align: center"><span style="color: #000000"><span style="font-weight: bold"><span style="font-size: 14pt">BACKGROUNDER</span></span></span></p>
<br>
<p><span style="color: #000000">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). </span></p>
<br>
<p><span style="color: #000000">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.</span></p>
<p><span style="color: #000000"> </span></p>
<p><span style="color: #000000">On April 8, 2004, the Government of Canada was notified by the DOC that it had
initiated investigations at the request of the NPPC.</span></p>
<br>
<p><span style="color: #000000"><span style="font-weight: bold">Countervail investigation</span></span></p>
<br>
<p><span style="color: #000000">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. </span></p>
<br>
<p><span style="color: #000000">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. </span></p>
<br>
<p><span style="color: #000000">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.</span></p>
<br>
<p><span style="color: #000000"><span style="font-weight: bold">Anti-dumping investigation</span></span></p>
<br>
<p><span style="color: #000000">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.</span></p>
<br>
<p><span style="color: #000000"><span style="font-weight: bold">Injury investigation</span></span></p>
<br>
<p><span style="color: #000000">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.</span></p>
<br>
<p><span style="color: #000000"><span style="font-weight: bold">Today’s decision</span></span></p>
<br>
<p><span style="color: #000000">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. </span></p>
<br>
<p><span style="color: #000000">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.</span></p>
<br>
<p><span style="color: #000000">The Canadian government will continue to actively defend the interests of the Canadian
exporters in close consultation with both the industry and provinces.</span></p>
<br>
<br>
<p><span style="color: #000000"><span style="font-weight: bold">Definitions</span></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">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. </span></p>
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