NCGA, U.S. Corn Coalition Disappointed in Canadian Ruling (3-15-06)

The National Corn Growers Association (NCGA), as part of the U.S. Corn Coalition, expressed disappointment today in the final ruling by the Canadian Border Services Agency (CBSA), upholding provisional duty of $1.65 per bushel on U.S. corn. The decision comes in response to allegations that U.S. dumping and subsidizing of grain corn harms Canadian producers.

According to the CBSA, it will continue to impose the duty on U.S. corn imports until the Canadian International Trade Tribunal (CITT) concludes its inquiry regarding injury to Canadian production. The tribunal's public hearings will begin March 20, with a decision expected by April 18.

“We are very disappointed in the ruling handed down today,” said Rick Tolman, NCGA CEO. “It is unfortunate the CBSA upheld the ruling of the duties. There is no winner in this outcome. Both the U.S. corn growers and Canada’s corn growers will feel significant negative economic impact because of the duties imposed.”

The coalition, which includes NCGA, U.S. Grains Council, Corn Refiners Association and American Farm Bureau Federation, issued testimony Feb. 23 to the CITT stating that evidence does not show Canadian growers have been injured by imports of grain corn from the United States. In fact, the evidence shows that imports of U.S. corn have declined substantially over the 2002-2005 time period.

The coalition, urging the tribunal to dismiss the case and immediately rescind the duties placed on the U.S. grain corn imports, said the determination and reasons cited by the CITT at the conclusion of the preliminary injury phase of the inquiry do not meet the legal standards for imposing antidumping or countervailing duties under Canada’s Special Import Measures Act (SIMA). Also, the CITT’s preliminary determination is inconsistent with the international trade rules that obligate Canada to conform to certain minimum standards in applying its antidumping and countervailing duty laws.

The coalition has continually maintained that U.S. imports have not been the cause of Canadian corn growers’ adverse economic or financial circumstances; at the same time that U.S. corn imports to Canada declined by nearly 50 percent, an estimated 8 million metric tons of additional Canadian feed barley and wheat were put on the market in 2004-05 leading to a decline in feed prices. If duties on U.S. corn remain in place, significant harm will be felt by Canadian corn users as that country does not produce enough corn for its domestic consumption.