Livestock groups reacted with outrage last week after the Canada Border Services Agency ruled in favour of keeping a provisional tariff on unprocessed grain corn imports from the United States.
The duty could drive the hog finishing and pork processing business out of Canada, said Clare Schlegel, Canadian Pork Council president.
The Canadian Cattlemen’s Association warned that the consequences could also be severe for the country’s cattle industry, although the group believes a case can still be made to get the duty dropped.
There hasn’t been much impact yet on corn prices in Ontario, but that could change if the duty becomes permanent and there’s a significant crop failure in a grain growing region like the Prairies, said Ian McKillop.
Read Also
Carberry field day looks for agriculture solutions
Manitoba farmers explored research solutions for resilient crops, perpetual agronomic issues and new kinds of agricultural products at a field day at the Manitoba Crop Diversification Centre in Carberry on Aug. 6.
“We as cattle feeders will have to factor those increased costs into the whole scenario when we’re buying cattle or buying calves, whereas the American producer will not have to factor those costs in,” said the president of the Ontario Cattlemen’s Association.
“Therefore, they can pay more for those calves and quite likely we could see more cattle being exported to the States, feeder cattle.”
Canadian corn growers described the latest decision as further vindication of their efforts to demonstrate the harm caused by U.S. farm policy.
“This trade action and the duties are a last resort and we freely admit that,” said Brian Doidge, spokesperson for Canadian Corn Producers.
“We have tried everything under the sun for 20 years to bring this to a head and to the attention of the politicians and bureaucrats. Unfortunately, the grain and oilseeds sector has been ignored and Canadian agricultural policy has been a dismal failure.”
The Canada Border Services Agency last week reaffirmed its position that U.S. grain corn imports to Canada are dumped and subsidized.
That means a provisional duty of $1.65 US per bushel will remain on those imports until the Canadian International Trade Tribunal concludes its final inquiry regarding injury to Canadian production. The CITT decision is expected by April 18.
Schlegel said increased feed costs create pressure to export more hogs to the U.S. for finishing, resulting in jobs being lost from Canada. He said the only glimmer of hope from last week’s ruling was that the agency found the duty could be reduced to $1.47 per bu.
However, until the tribunal makes its ruling, the duty will stay at $1.65.
“It’s difficult times, because we understand the plight of the grain farmer and the corn farmer, but we also want to have a chance to succeed.”
Canadian Corn Producers, a coalition of corn producer associations in Manitoba, Quebec and Ontario, said its members can no longer endure damages caused by U.S. corn subsidies. Doidge said their battle is against the U.S. farm bill, not livestock groups in Canada.
Last week’s decision was followed by accusations from the U.S. trade representative’s office that Canada has failed to satisfy international trade rules during its investigation of the case. The U.S. office has requested consultations with Canada under the World Trade Organization.
Doidge described those accusations as “horse feathers” and said they will not sway the determination of Canadian corn growers.
Meanwhile, the debate continues over whether importers of U.S. corn should be entitled to a rebate known as a duty drawback. Livestock groups insist the drawback should apply on corn imports used to feed livestock that will be exported from Canada. Corn growers disagree.
