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Canadian agency rules in favor of U.S. corn
The Canadian International Trade Tribunal (CITT) this past week ruled Canadian corn producers are not adversely affected by imports of unprocessed U.S. corn.

The ruling is thought to an end the corn trade dispute between Canada and the United States.

The dispute started when a group of Canadian corn growers asked its government to investigate if the United States was dumping corn into Canada.

One month ago, the Canadian Border Service recommended a provisional duty of $1.47 per bushel on U.S. corn be imposed for up to five years.

With the CITT ruling, the duty will stop being collected, and funds collected from late 2005 up to the ruling will be refunded.

“The United States is very pleased by the Canadian International Trade Tribunal’s finding in the anti-dumping and countervailing investigations of imports of unprocessed grain corn from the United States,” USDA Secretary Mike Johanns and U.S. Trade Representative Rob Portman said in a news release.

“This was the final authority,” says Don Mason, Iowa Corn Growers Assocation director of grower services.

However, he says the Canadian corn growers group may pursue other means for their case or argument.

The Canadians argued the United States was dumping corn in their country because the United States subsidizes its corn production.

The U.S. Corn Coalition, which included the American Farm Bureau Federation, Corn Refiners Association, National Corn Growers Association and U.S. Grains Council, has maintained U.S. imports have not been the cause of Canadian corn growers’ adverse economic or financial circumstances but rather by other unrelated factors.

The coalition noted imports of U.S. grain corn into Canada have fallen by 42 percent in the last two years.

In the marketing year that ended in August, the United States exported about $210 million of corn to Canada.

The principal uses of grain are in animal feed, ethanol production and distilled spirits.

As much as Canada is a market for U.S. corn growers, Mason says the ruling is favorable to Canadian livestock producers.

He says the ruling shows the trade-dispute system can work.

“These things can be worked out,” Mason notes.

In addition, he says it shows the importance of coalitions that can work together to solve issues.
MGR Archive 21.5.2006
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