The leader of an American cattle producers’ petition charging Canada with unfair trade practices says his group has enough support to gain a government hearing.
Although disappointed that the United States National Cattlemen’s Beef Association won’t join the campaign, Leo McDonnell says the petition has support from Montana, southeastern states and major agriculture groups like the U.S. National Farmers Union, grazing associations and local farm bureaus.
However, larger cattle feeding areas like Kansas and Texas do not favor the petition from the Ranchers-Cattlemen Action Legal Foundation.
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“The only resistance we’ve had is from some of the Texas cattle feeders that would be feeding some of these cheap Mexican cattle,” said McDonnell, who operates a bull test station at Columbus, Montana.
The petition was filed with the U.S. Department of Commerce Oct. 1 and the foundation has until Nov. 8 to continue gathering support. It has to represent a minimum of 25 percent of U.S. production for a government hearing to occur.
McDonnell is confident the foundation will obtain enough signatures to keep the petition alive.
It targeted live cattle in the petition because the commerce department said beef was a different product so it couldn’t be included in this petition.
“Our argument is that they are like products,” he said.
If a countervail is approved, the foundation wants to include carcasses and meat cuts.
The group argues that imports of Canadian live cattle and beef disrupt the market because they are sold in the U.S. for less than the cost of production. The petition supporters want the American government to identify dumping margins by placing a penalty on the cattle.
They have also cited a number of Canadian programs that disrupt the market, including the Canadian Wheat Board, which they claim keeps the price of barley lower for feeders.
Canada attractive
However, in recent weeks U.S. growers have been shipping more barley into Canada to capitalize on higher prices here.
As of Oct. 16, barley sold on a cash basis in northeast Montana for $1.20-$1.30 (U.S.) per bushel. In Lethbridge the price was about $2.20 Cdn) per bu.
McDonnell said the R-Calf group is not going against the spirit of free trade agreements because the deals contain strong anti-dumping sanctions.
“If free trade is that you’re free to do whatever you want to, then yes, we’re going against that. We are going on a more fair trade basis,” he said.
