Hog farmers were as surprised as any by the federal government’s announcement of extra aid last week.
While most farmers were happy, hog producers were worried about the implications of new aid coming down the week before a major trade dispute ruling.
“We were concerned,” said Karl Kynoch, the chair of the Manitoba Pork Council, about the aid announcement.
“There’s a lot riding on this decision.”
Even more concern was raised when the Canadian government announced it was going to retaliate against U.S. subsidies in other industries with a series of measures that included imposing tariffs on imports of U.S. hogs.
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On April 6, the United States Department of Commerce was scheduled to release its final ruling on whether to keep duties on Canadian live pig imports. If the present duty of 10.63 percent is maintained, farmers will face years of lower prices, legal action and annoyance.
If the duty is dropped, hog farmers should have years of hassle-free trade ahead of them.
Kynoch, after initially being alarmed by the aid announcement, was pleased when he found out that hog producers will not directly receive any of the new aid.
“There was something for grains and oilseeds and cattle and other ruminants, but nothing for pigs. We weren’t asking for anything.”
The Canadian hog industry often lobbies against all but the most general aid programs because it relies on access to the U.S. market and does not want to antagonize U.S. farmers, companies or regulators with subsidies.
The U.S. commerce department recently ruled that the Canadian hog industry does not receive illegal subsidies, so countervailing duties cannot be assessed against it. That ruling was a major victory for the Canadian industry.
Now it just wants to get past the April 6 final ruling on dumping, which comes the same week as the annual convention of the Manitoba Pork Council in Winnipeg.
