Will the truth set the prairie hog business free?
Canadian hog farmers will have a chance to find out as a U.S. government agency surveys the North American industry to discover whether Canadian hogs are being dumped ,or sold at prices below the cost of production, into the American market.
Daniel Porter, a Washington, D.C., trade lawyer, said in an interview that farmers should fill out and return questionnaires that are part of the survey because it’s their best defence.
“I believe strongly that if the truth about the industry becomes known to the ITC (International Trade Commission), we win,” said Porter, who is representing the Manitoba pork industry before U.S. regulatory agencies.
Read Also
China’s grain imports have slumped big-time
China purchased just over 20 million tonnes of wheat, corn, barley and sorghum last year, that is well below the 60 million tonnes purchased in 2021-22.
“The facts are on our side.”
Porter, who spoke to a special meeting of Manitoba hog producers in Winkler on Nov. 5, gave an update on the anti-dumping duties, offered advice about how to stay out of legal trouble and gave optimistic, if qualified, predictions of success.
“I think it’s a very strong case,” said Porter, who will face an ITC panel in mid-March, when a final ruling will be considered on whether the U.S. industry has suffered dumping.
“I would say the case is 50-50, maybe even 60-40 (chance of success for Canada).”
While those odds may not sound great to a prairie hog producer whose main market lies in the United States, it’s a lot better than most exporters face in similar cases. Usually a foreign exporter has a 25 percent chance of winning, Porter said.
The U.S. Department of Commerce recently began levying a 14.06 percent duty on purchases of most Canadian pigs because it ruled that Canadian pigs might be undermining U.S. producers.
Porter said the American case is weak. If Canadian hogs are hurting the American market, the evidence is not visible this year.
“Prices for market hogs are the highest in years. U.S. hog producers are making very good money right now,” said Porter.
“They need to prove they’re suffering material injury. If they’re making that much money, how are they suffering material injury?”
Since Canadian hog producers have a good chance of winning this dispute, all hog producers should complete the questionnaires they receive.
“The more questionnaires the ITC gets, the more information they get, the better record they’ll have to make a determination,” said Porter.
“It’s very important that Canadian producers fill it out.”
