A new study by the National Oilseed Processors Association and the Iowa and Minnesota Soybean Growers Associations warns that U.S. pork producers in Iowa and Minnesota who import Canadian swine and raise them in the United States could be significantly impacted by antidumping duties imposed on live swine imports from Canada.

The study was initiated after the National Pork Producers Council and other groups filed a petition with the U.S. International Trade Council alleging that Canadian hog producers were dumping and receiving illegal subsidies from the Canadian government. The Commerce Department is scheduled to announce its final dumping margins March 7.

The study found that U.S. demand for Canadian feeder pigs has grown sharply because of increased specialization, with the largest percentage of imported pigs going to Iowa (59 percent) and Minnesota (32 percent). An imposition of a 13 percent to 15 percent tariff would increase the cost of feeder pigs to U.S. finishers.

The study concluded that the evidence examined offers little justification for imposing tariffs on live hog imports from Canada. If such tariffs were to be imposed, it is difficult to see how they would be of benefit to the U.S. pork industry over the long run, according to the study.

Source: Pork Trade Action Coalition