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Canada Rules Sufficient Evidence in Corn Dumping Case

Tuesday the Canadian International Trade Tribunal ruled that there is sufficient evidence suggesting U.S. corn growers are dumping and subsidizing unprocessed grain corn into Canada.

The CITT ruled against the U.S. Corn Coalition and said it will provide its reasons for the ruling within 15 days. The CITT did not believe the processed corn industry is dumping or subsidizing corn into Canadian markets.

In its statement, the CITT's statement says, "The Canadian International Trade Tribunal hereby determines that there is evidence that discloses a reasonable indication that the dumping and subsidizing of unprocessed grain corn have caused injury to the domestic industry."

"We are disappointed by the ruling, but we will continue to fight it," said Rick Tolman, National Corn Growers Association CEO. "We believe the Canadian corn producers have no justification for taking this to court. We're hopeful this can be settled without litigation."

The U.S. Corn Coalition consists of NCGA, the American Farm Bureau, the U.S. Grains Council and the Corn Refiners Association.

The Ontario Corn Producers' Association, the Federation des producteurs de cultures commerciales du Quebec and the Manitoba Corn Growers Association Inc. filed a complaint Sept. 16 with the Canadian Border Service Agency. The CITT then held the hearing on the case. The associations allege dumping and subsidizing of grain corn in all forms from the United States is harming Canadian corn producers.

However, Canadian imports of U.S. corn are down over the past two years. Average corn imports from the United States between 2000 and 2003 were approximately 140 million bushels per year, dropping to 85 million bushels during the past two years. The forecast for next year is 103 million bushels.