Canada Pork Subsidies Don't Cause U.S. Injury, ITC Says
Unless NPPC appeals, imposed sanctions will be refunded to Canadian exporters.
Jacqui Fatka
Published: Apr 6, 2005
In a 5 to 0 vote, the U.S. International Trade Commission voted today that U.S. hog producers were not being injured by unfairly traded Canadian hog imports. The decision was welcomed by the Canadian pork industry, while the National Pork Producers Council (NPPC) still stands by the merits of its case.
Although an ITC official statement regarding the decision has not been made, the current robust financial condition of the industry played an important role in their final determination.
"We cannot understand how two groups of producers (U.S. and Canadian) can react so differently to the same market signals," says Don Buhl, President of NPPC. "This situation has existed for many years so it cannot be dismissed as an aberration. Something is distorting this economic relationship and we remain convinced that it is the programs of the Canadian and provincial governments."
Buhl adds that the fact that there are high profits doesn't diminish the subsidies being provided to Canadian producers. "The high profits in 2004 and the first part of 2005 do not diminish the trade distortive effects of the Canadian subsidies, nor do the recent profits mean that the Canadian subsidies will not cause more injury in the near future," he says.
Canadian Pork Council President Clare Schlegel explains that Canadian hog producers create added value opportunities for the United States. He adds that the recordbreaking year of exports would not have been possible for the U.S. had it not been for the integrated environment of the North American pork industry.
Once the ITC officially informs the Commerce Department of their decision, the deposits paid on the imposed tariffs since October will be refunded to Canadian exporters. CPC Executive Director Martin Rice expects the returns to reach nearly C$25 million.
Schlegel hopes that now the case is decided, the North American industry can begin to again address important issues together such as market access, disease prevention and eradication, traceability and animal identification, environment and food safety concerns.
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