Attempts by Canadian corn growers to impose an import duty on U.S. corn have just about reached the end of the line.
The Federal Court of Appeal last week rejected a request by the Canadian Corn Producers for a judicial review of a May 2006 ruling by federal regulators that U.S. corn imports did not injure the Canadian corn industry.
The only way the corn producers can keep the case alive is to seek leave to appeal to the Supreme Court.
“We have made no decision on that,” said Ryan Brown, general manager of the Ontario Corn Producers’ Association. “We don’t have enough information on the decision.”
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The three-judge appeal panel issued only an oral ruling, with a written ruling to come at a unspecified future date.
Manitoba Corn Producers Association spokesperson Theresa Bergsma said the judges said they found no errors in the May 2006 no-injury decision by the Canadian International Trade Tribunal.
“We are very disappointed.”
However, Brown said while the anti-dumping countervailing duty case may be nearing an unsuccessful conclusion, the fight against trade-distorting subsidies paid to U.S. corn growers will continue through the World Trade Organization.
The federal government in January launched a WTO challenge against those subsidies, as well as the Americans’ use of export credits and total spending on agricultural support programs.
“Certainly we want to see that play out,” said Brown, adding the corn producers are pleased Ottawa requested a WTO dispute resolution panel June 8 to deal with U.S. subsidies.
He said that while the countervailing duty would have provided immediate short-term relief for Canadian corn growers, the WTO is the way to achieve a longer-term solution to the problem of U.S. subsidies.
The groups also want federal and provincial governments to provide direct payments to Canadian growers to offset the impact of U.S. subsidies.
The corn growers’ fight for a countervailing duty gained initial success in December 2005 when the Canadian Border Services Agency made a preliminary determination that U.S. grain corn exports to Canada were subsidized and dumped. Duties totalling $1.65 US a bushel were imposed to prevent injury to Canadian growers.
In March 2006 the agency issued a final ruling confirming those duties, but the CITT later ruled there was no injury to Canadian growers and scrapped the duty.
The corn producers’ appeal to the Federal Court was opposed by about 20 intervenors, including the U.S. government, Archer Daniels Midland, Maple Leaf Foods and the Canadian Cattlemen’s Association.
“Our case was based on the premise that instead of farmers bearing the cost of this harmful U.S. legislation, we should pass the costs on to processors and end users,” Brown said.
“By opposing us, those groups are saying they don’t want to do that.”
