Canadian pig producers are giving up hope that American producer groups will support free and fair trade.
They have discovered recently that the most influential U.S. pig producers group will fight to block the border unless Canada gives up every form of producer support, even if the programs do not encourage production.
“The National Pork Producers Council is unrelenting,” said Manitoba Pork Council general manager Ted Muir. “For some reason they’ve changed their tactic.”
The council has generally been an opponent only of trade-distorting agricultural subsidies. It has not lobbied for trade actions against Canadian imports because the farm support programs do not encourage the production of hogs.
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But after the U.S. federal commerce department ruled on Aug. 17 that Canada’s support programs do not breach any U.S. or international trade laws, the council renewed its calls for government action against Canadian imports.
“The investigation demonstrates that Canadian hog farmers have received and continue to receive substantial subsidies,” said NPPC past-president Jon Caspers in a written response to the commerce department decision that the Canadian support programs were not illegal.
Caspers claimed that whole-farm income stabilization programs had the effect of flooding the U.S. market with hogs.
“The Canadian subsidies eliminate the bottom side of the profitability cycles since it places a floor under income levels,” he said.
“Again, the Canadian hog farmer can’t lose. Their government guarantees them an income no matter what. In contrast, U.S. hog farmers can’t win.”
Muir said the U.S. council has traditionally not targetted “green” farm support programs, but now seems to have decided to attack Canadian pigs so long as Canadian farmers receive any support from the government.
At the same time, most analyses show that American farmers receive higher support payments than Canadian farmers.
“It’s a bit of a double standard,” said Muir. “But that’s the game now.”
The hog industry, like the cattle industry, worked hard to eliminate government programs that could be portrayed as encouraging overproduction, but has now found that this has not solved the problem of American trade actions.
“They’re playing hardball,” said Muir.
The U.S. commerce department is conducting an antidumping investigation. Canadian imports could face tariffs if it discovers that Canadian hogs were sold in the U.S. at an average cost below the cost of production. Preliminary results were scheduled to be announced Oct. 15.
