Corn producers have taken off the gloves and want to beat down livestock producers’ attempts to avoid the corn import duty.
But the hog industry says it isn’t rattled by the Canadian Corn Producers threat to take legal action against the Canada Border Services Agency, or CBSA.
“It hasn’t changed what we’re telling people,” said Martin Rice of the Canadian Pork Council.
“We would advise everybody to deal with the CBSA directly.”
The CBSA has explained to many livestock producers how they can apply for exemptions from import duties on imported U.S. corn if the corn is fed to animals that are later exported to the United States.
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Canadian trade laws allow for materials to be imported duty-free if they are used to manufacture goods that are exported, not consumed domestically.
But the Canadian Corn Producers is warning livestock producers not to rely on this belief. On Jan. 17 and Jan. 20 the association said it disagreed with the breadth of the CBSA’s judgment on exemptions for U.S. corn.
It also warned livestock producers that the CBSA could claw back the exempted duties later if it changes its view.
And it is threatening to hit the CBSA with an injunction or lawsuit if the agency continues to liberally apply the exemption.
“Absent CBSA action, CCP will take legal action to ensure the law is enforced,” said the corn producers’ statement.
“CBSA must enforce the law as it is written and not allow excess or inappropriate duty relief that can circumvent duties.”
Rice said the pork council’s trade adviser assures the industry that the exemption is part of longtime Canadian trade regulations and is generally accepted.
“They are explicitly provided for under the law,” said Rice.
“We don’t see it as any different from importing sugar to make a chocolate bar.”
Until this point the corn and hog industries have been civil in their discussion of the issue, with hog producers often stating they don’t take personal offence at corn growers’ actions, even if they disagree with them.
But that may change now that the corn producers are trying to push the border agency to reverse its approach and claw back exempted duties.
“We’re surprised they would have taken this approach … . It won’t help the relationship,” said Rice.
But the acrimony doesn’t change anything fundamental and the pork council is not suggesting any changes in light of the corn producers’ threatened legal action.
“It’s caused a bit of consternation, but it hasn’t shaken our faith in the system,” said Rice.
