LETHBRIDGE, Alta. – Canadian pork producers should expect a refund of more than $11 million in countervail duties paid between 1992 and 1994 on live hogs exported to the United States.
The Americans have charged duties on Canadian hogs since April 1985 with the inception of the tripartite red meat stabilization subsidy. U.S. farmers said the Canadian subsidy hurt their industry and because of pressure from that quarter, the program ended in 1994.
However, duties of nine cents per pound are still collected on Canadian hogs.
Canada has challenged and won back almost all the duties paid.
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The charges cover weaner pigs, market hogs, sows and boars sold during the fiscal years 1992, 1993 and 1994. These periods are being reviewed together and Canada expects money back, said Canadian Pork Council manager Martin Rice.
$11 million in payments
“We’re looking at an average refund of six cents a pound,” said Rice. Combined with interest payments, Canadian producers could anticipate as much as $11 million.
Jack Kalisvaart, vice-chair of the Alberta Pork Producers Development Corporation, the province’s single-desk seller, is confident the duty will end since the tripartite red meat stabilization program ended.
“I think we’re very close to getting rid of the countervail on live hogs,” he said at a producers’ meeting in Lethbridge.
In 1995, Canada sold 495,928 market hogs to the United States.
Manitoba exported the highest amount at 214,438, followed by Ontario at 135,143 and Alberta was third at 100,541.
