Commerce Initiates Antidumping, CV Duty Investigations of Canadian Swine

US - The U.S. Commerce Department announced April 8 that it has initiated antidumping and countervailing duty investigations on live swine imports from Canada, in response to petitions from U.S. pork producers, reported Bureau of National Affairs.
calendar icon 13 April 2004
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The National Pork Producers Council charged in its March 5 filing that subsidized and dumped Canadian hogs have caused an oversupply in the U.S. market, resulting in declining prices for hogs and severe operating losses for U.S. pork producers.

Dumping is the sale of imports at "less than fair value," or below the cost of production or home market price. U.S. industries frequently seek AD duties to counteract the low prices of allegedly dumped imports. Countervailing duties are sought to counteract the impact of foreign government subsidies.

According to a Commerce Department fact sheet, the alleged AD margin--the degree to which live swine are sold in the United States at "less than fair value"--ranges from zero to 66.48 percent, meaning that AD duties on Canadian hogs could reach that high if Commerce agrees with the petitioners' case. Commerce also said it would investigate up to 22 subsidy programs in the CVD investigation.

According to Bureau of National Affairs, the U.S. International Trade Commission is scheduled to make a preliminary injury determination in both cases May 3, and if it finds there is a reasonable indication that live swine imports from Canada are causing material injury to the U.S. industry or threatening to do so, the case will continue. Commerce will then make a preliminary determination on a CVD margin June 11, and a preliminary determination on an AD margin Aug. 25.

Source: National Pork Producers Council (NPPC) - 12th April 2004

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