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Canada lifts duty on US grain corn

Agriculture.com Staff 04/19/2006 @ 11:43am

The Canadian International Trade Tribunal (CITT) ruled yesterday that unprocessed U.S. grain corn imported into the country have not injured Canada's domestic corn industry. The $1.65 per bushel duty that had been imposed on the grain will be lifted immediately, and all provisional duties collected will be refunded.

An American coalition, including NCGA, U.S. Grains Council, Corn Refiners Association and American Farm Bureau Federation, testified before the CITT in February, stating that evidence does not show Canadian growers have been injured by imports of grain corn from the United States. In fact, according to NCGA, the evidence showed that imports of U.S. corn to Canada declined substantially from 2002 to 2005.

The coalition claimed the prior CITT ruling did not meet the legal standards for imposing antidumping or countervailing duties under Canada's Special Import Measures Act, and that CITT's preliminary determination was inconsistent with international trade rules.

"The ruling is confirmation that, when properly utilized, the international trading system works in favor of free trade," said U.S. Agriculture Secretary Mike Johanns. "This is good news for U.S. corn producers and exporters, as well as our valued Canadian customers. Exports of unprocessed U.S. grain corn to Canada account for more than $200 million in sales each year."

According to the U.S. producer groups, the decline in Canadian feed prices was caused by an estimated 8 million metric tons of Canadian feed barley and wheat being placed on the market in 2004-05, combined with a 50% reduction in U.S. corn imports to Canada. If the duties on U.S. corn would have remained in place, the groups say, Canadian corn users would have faced rising prices, since that country does not produce enough corn for its domestic consumption.

The Canadian International Trade Tribunal (CITT) ruled yesterday that unprocessed U.S. grain corn imported into the country have not injured Canada's domestic corn industry. The $1.65 per bushel duty that had been imposed on the grain will be lifted immediately, and all provisional duties collected will be refunded.

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