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Canada Assesses Preliminary Duties on U.S. Corn

The Canadian Border Services Agency issued a ruling calling for preliminary duties on U.S. corn. The decision comes in response to allegations that the United States' dumping and subsidizing of grain corn harms Canadian producers.

The U.S. Corn Coalition, which includes the National Corn Growers Association, U.S. Grains Council, Corn Refiners Association and American Farm Bureau Federation, says that the process is not final and it will continue working with the U.S. Trade Representative and the Agriculture Department to demonstrate that there has been no injury to Canadian corn producers.

Instead, contends the coalition, duties on U.S. corn could potentially cause harm to Canadian corn users by stopping or decreasing corn imports from the United States to a country that does not produce enough corn for domestic production.

A statement from U.S. Trade Representative Rob Portman and Agriculture Secretary Mike Johanns says "Canada has conducted two prior investigations of U.S. corn imports, revoking a countervailing duty order after a GATT panel decision was adopted in 1992 and finding no injury in a second investigation in 2001," the statement says. "We believe that Canada should again find that U.S. corn imports are not injuring Canadian corn growers and that the unwarranted provisional duties announced should therefore be terminated.

"While Canada's corn production has increased, its domestic corn demand still cannot be met through domestic production alone. In fact, imports of U.S. corn into Canada are down over the past two years. Twenty Canadian corn user groups have expressed their opposition to this case moving forward," they continue.

The final decision by the Canadian Border Services Agency is expected in March 2006.