Released on October 3, 2003
In a decision today by the U.S. International Trade Commission, countervailing and anti-dumping duties involving Canadian hard-red spring wheat were affirmed, but were dropped with respect to durum wheat imports from Canada."While we are pleased with the decision respecting durum, we are concerned and dismayed that the same objective analysis was not used in the hard-red spring wheat investigation," Deputy Premier and Agriculture, Food and Rural Revitalization Minister Clay Serby said.
Despite today's favourable ruling on durum, Saskatchewan has instructed its legal counsel to immediately file a formal request for a NAFTA panel review of the earlier countervailing duty determinations on both Canadian hard-red spring wheat and durum.
In these NAFTA panel reviews, Saskatchewan will aggressively challenge the earlier US findings that hard-red spring wheat and durum exports are being subsidized. Saskatchewan will also strongly support the Government of Canada and the Canadian Wheat Board (CWB) in their defence against US allegations of subsidization and dumping.
"The idea that Canadian wheat imports are injuring US farmers is outlandish. Over the past three years alone, US wheat farmers have received nearly three times the level of income support that ours have," Serby said.
"The real source of the problems facing US wheat farmers is not Canadian imports, but rather their own Farm Bill and the distortions that its excessive support programs create in the US and global markets."
The US previously announced anti-dumping duties on hard-red spring and durum wheat sales of 8.86 per cent and 8.26 per cent respectively, and a countervailing duty on both products of 5.29 per cent. The duties on hard-red spring wheat become permanent as a result of the International Trade Commission injury ruling today. The challenges by Canada, Saskatchewan and other provinces will seek to overturn these duties on the grounds that they are legally indefensible. The duties on durum will be eliminated and any deposits previously collected will be refunded.
"Bowing to relentless Congressional protectionism on this issue last year, the US government launched what we consider to be a politically motivated attack against the Canadian Wheat Board. Today, we see the first results of that attack. However, I am confident that a NAFTA panel and, if necessary, a WTO panel will find against these US determinations, just as nine other investigations of the CWB have done since 1990," Intergovernmental Affairs Minister Eldon Lautermilch said.
The US market typically represents about 10 per cent of the CWB's sales volume. During the 2001-02 crop year, the US purchased almost 900,000 tonnes of western Canadian hard-red spring wheat and 570,000 tonnes of durum wheat. A ruling by the NAFTA panel is not expected before August 2004.
-30-
For More Information, Contact:
| Scott Brown Agriculture, Food and Rural Revitalization Regina Phone: (306) 787-4031 |