Canadian Swine Producers Focus on Building Stronger Alliances to Smooth
Farmscape Article 1952-October 29, 2005
Canadian swine producers are making every effort to strengthen alliances with their
Since April, when the U.S. International Trade Commission (ITC) ordered an end to preliminary antidumping duties on live Canadian swine, several cross border initiatives have been undertaken on both sides of the 48th parallel to strengthen trade relations but the tensions have not yet been entirely erased.
Duties Based on Accusations of Illegal Canadian Subsidies and Dumping
The preliminary import duties were imposed by the U.S. Commerce Department (DOC) in October, 2004, and were the result of exhaustive countervail and antidumping duty investigations conducted by the DOC and ITC in response to complaints filed by the National Pork Producers Council (NPPC).
Although the DOC had dismissed the countervail investigation, having found no evidence of illegal subsidies, it had determined Canadian pigs were sold into the
The matter concluded with the ITC's final injury determination, in which it ruled the imported Canadian swine had not caused harm and did not threaten to cause harm to American producers and ordered the tariffs revoked and duties already collected refunded.
The issue resurfaced earlier this month when officials of the Canadian Pork Council, the
The trilateral meetings are held every six months and this time around they covered everything from traceability to food safety and animal health to international trade.
“We had a very frank direct honest open discussion about trade,” states Canadian Pork Council (CPC) President Clare Schlegel.
“The
Subsidization Remains Central Concern
“We certainly perceive some dollars going to U.S. farmers that don’t come to Canadian farmers and likewise they perceive dollars going to Canadian farmers that they feel they do not have available to them on the United States side of the border.”
Despite the disagreement, Schlegel is convinced the Canadian and
As part of Manitoba Pork Council’s effort to cultivate greater U.S. producer awareness of the Canadian swine industry and foster improved trade relations, a delegation from the agency will embark on a tour of three key U.S. pork producing states at the end of January and beginning of February next year.
The visit, which will include stops in
Manitoba Pork Council General Manager Andrew Dickson says the response to the initial visit was so positive it justified a return trip. This time around representatives will address a wider audience and set up a display designed to tell the story of pig production in
“The main theme will be partners in North American pork production,” Dickson states. He explains, “We’ll have some information on the various programs that Canadian farmers have available to them so that we can try to explain some of these. What we’re trying to do is create an atmosphere of positive relationships and try to avoid the 20 year history of confrontation that seems to have reigned.”
“Hopefully with a better understanding of how we do business, they will see that there’s a true partnership in terms of carrying on pig production in a North American market place.”
Dickson suggests, “The similarities between
He observes, “Prices are still good. The profitability therefore is up with
He says, “It’s going to be somewhat difficult for them to bring a case until prices come down and the data seems to suggest they’ll be up well into 2006.”
Canadian Industry Encouraged to Be Prepared
Nonetheless, Porter is advising his clients to be prepared, in advance, for the next challenge. He suggests, in the event a new complaint is filed Canadian producers will need to be ready to hit the ground running.
He stresses, “You have to make [some of] these arguments, these claims, within the first 20 days after a case is filed.”
“What we need to do is to be ready to go on day one, contacting the customers, contacting those in the industry that will oppose it, making sure the opposition is known to the U.S. commerce department and hopefully cutting this off at the pass and defeating it from the get go.”
Manitoba Pork Council Chair Karl Kynoch agrees, “There's a lot of mixed feelings down there.” He notes, during the first trip, it was made clear that many
Schlegel adds, “Market access around the world is an important issue, particularly to the
He notes, “I do think the dynamic is changing and
“We believe that the reality that the U.S. dollar Canadian dollar differential, with the U.S. dollar weakening, the Canadian dollar strengthening, that that changes the competitiveness between our two countries. That is indicated by the
He says, “The reality that ten yen buys more
Continued Communication Encouraged
Schlegel encourages stakeholders in the two industries to continue to talk with each other and understand the opportunities and barriers on both sides of the border.
He maintains, “From a North American perspective, we all stand to gain by working together and not against each other.”
Staff Farmscape.Ca