Canadian cattle producers want to put on hold the collection of duties on U.S. corn imports, but Manitoba corn growers say such a move would be grossly unfair.
Last week, the Canada Border Services Agency imposed provisional duties after it determined that unprocessed grain corn from the United States is being dumped and subsidized.
The Canadian cattle industry said the duties, which are the equivalent of $1.90 Cdn per bushel, could give American cattle feeders an advantage while harming cattle feeders and beef processors in Canada.
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“We think the CBSA has the authority to delay collecting duties for upwards of 120 days,” said Ian McKillop, a director for the Canadian Cattlemen’s Association and president of the Ontario Cattlemen’s Association.
“We feel they should use that power to delay it until such time as a more detailed investigation can be completed.”
The Ontario Corn Producers’ Association, the Manitoba Corn Growers Association and the Fédération des producteurs de cultures commerciales du Québec pushed for the duties alleging that subsidized American corn is harming Canadian corn prices and production and increasing the burden on government support programs.
The Canadian International Trade Tribunal already has made a preliminary finding that imports of unprocessed corn from the U.S. have injured Canadian growers.
The tribunal’s final decision on injury is expected by April 14 while the border agency’s final decision on dumping and subsidy is expected by March 15.
McKillop said the provisional duties imposed Dec. 15 could add as much as $100 per head to the cost of feeding cattle in Ontario. That could lead to an increased flow of feeder cattle to the U.S., he said, leaving fewer cattle to be finished and processed in Canada.
Meanwhile, Clare Schlegel, president of the Canadian Pork Council said the duties could add as much as $20 per head to the cost of feeding hogs in Canada, resulting in more weanlings being shipped to the U.S. for finishing.
Schlegel and McKillop said increased livestock exports to the United States could result in more American trade action against Canadian cattle and hogs.
Corn growers remain determined, however, and said the trade action was the only way to get relief from depressed prices for their commodity.
