Art Petkau grows corn on his mixed farm near Morden, Man., but is not enthused about a trade complaint that could push up the crop’s value in Western Canada.
That’s because Petkau is also a cattle producer who worries the complaint by the Manitoba Corn Growers Association may lead to higher feed costs.
The Canadian International Trade Tribunal issued a preliminary ruling this month that American corn imports are causing financial harm to Western Canadian corn growers. An interim tariff on those imports could come as early as November.
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The tariff would push up the price of American corn imported into Western Canada. The United States price influences what Canadian corn growers receive for their crop.
Petkau speculates that such a tariff could eventually raise the price of all feed grains in the region.
“I can’t see why myself, as a corn grower, would want to kick my customer in the head by increasing the cost of the product he’s buying from me,” said Petkau, who was president of the provincial corn growers association in the 1980s.
The Canadian Cattlemen’s Association is watching to see where the corn growers’ complaint leads, but has not taken a position.
The CCA has its own score to settle when it comes to international trade.
The Canadian cattle industry last year was slapped with an interim tariff on its exports of live cattle to the U.S. Although those allegations were eventually dismissed and the duty lifted, it cost the Canadian cattle industry $5.5 million in legal fees to defend itself. To prevent a repeat, the CCA wants changes made to how the definition of dumping is applied in international trade.
Mike Jubinville, an analyst with Pro Farmer Canada, doubts whether U.S. corn will be penalized.
“We don’t know what level of duty there’s going to be, if there’s one at all,” he said last week.
