Critics of the attempt by Canadian corn producers to win duty protection against cheap subsidized American corn imports say the growers are abusing Canadian trade remedy laws to win a domestic political battle.
Corn producers want to use legal action against American imports to force Canadian and provincial governments to provide higher subsidies, said a coalition of corn users under the name Animal Industry Corn Users.
The Canadian International Trade Tribunal is expected to rule on Nov. 15 whether corn growers should be protected from U.S. product through anti-dumping duties.
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The Canadian Corn Growers, representing producers in Ontario, Manitoba and Quebec, say cheap imports are forcing them to sell at less than production costs. A brief to the CITT calculates that corn prices dropped 91 cents this year compared to last, that Canadian corn acreage fell 5.4 percent and that corn from this year’s crop is priced 32 cents per bushel below production costs.
“Price depression and suppression have been occurring because the massive recurring U.S. subsidies create incentives for U.S. growers to plant substantially more grain corn acreage each year than would be demanded in an undistorted market,” said the corn growers in a submission to the
tribunal.
Last week, corn users fought back.
The coalition representing cattle, hog and other feeders alleged the corn growers are misusing trade law to gain additional farm support funds.
“This complaint has been brought for the wrong reasons and is an abuse of process,” the coalition said in a brief to the CITT.
“The AICU submits that this complaint does not meet the required injury standards. It does not provide a causal link to increased import trends. This complaint is part of a broader strategy aimed at helping Ontario corn producers to persuade governments to reintroduce more sector specific and generous safety net programs.”
