The Canadian Border Services Agency released its final ruling on the case presented against the U.S. corn industry. CBSA upheld a provisional duty of $1.65 per bushel on U.S. corn. The decision comes in response to allegations that U.S. dumping and subsidizing of grain corn harms Canadian producers.
According to CBSA, it will continue to impose the duty on U.S. corn imports until the Canadian International Trade Tribunal concludes its inquiry regarding injury to Canadian production. The tribunal's public hearings will begin March 20, with a decision expected by April 18.
A U.S. Corn Coalition, which includes the National Corn Growers Association, U.S. Grains Council, Corn Refiners Association and American Farm Bureau Federation, naturally is disappointed by the decision.
The coalition is urging the tribunal to dismiss the case and immediately rescind the duties placed on the U.S. grain-corn imports. Specifially, the coalition argues that CITT's determination and reasons cited at the preliminary-decision phase do not meet the legal standards for imposing antidumping or countervailing duties under Canada’s Special Import Measures Act. The coalition also believes that CITT’s preliminary determination is inconsistent with the international trade rules that "obligate Canada to conform to certain minimum standards in applying its antidumping and countervailing duty laws."
The coalition continues to maintain that U.S. imports have not been the cause of Canadian corn growers’ adverse economic or financial circumstances. The group points out that when U.S. corn imports declined by nearly 50 percent, an estimated 8 million metric tons of additional Canadian feed barley and wheat hit the market in 2004 to 2005 leading to a feed-price decline.
The coalition argues that if duties on U.S. corn remain in place, significant harm will be felt by Canadian corn users as that country does not produce enough corn for its domestic consumption. Several groups representing Canadian corn users agree with that assessment.
U.S. Corn Coalition