Exemption Underlines Inequity in U.S. Hog Import Penalty

Kynoch explains, “The U.S. DOC’s decision, based on a small and unrepresentative sample – only two Ontario-based producers rather than all four ‘mandatory respondents’ – seriously and unfairly affects thousands of other Canadian producers. The duty determination process is flawed and undermines the credibility of the dumping determination process.“

“I’m pleased that one Manitoba company (Hytek Ltd.) will not face the duty. A larger and more representative sample of Manitoba producers would have resulted in many more exemptions.“

DOC’s decision to disregard information gathered from the second Manitoba exporter (Excel Swine Services) at the eleventh hour adds to concerns that the process is skewed. “Suggesting that Manitoba producers are dumping on the basis of so limited a sample is blatantly unfair. It only reinforces perceptions that the whole process is simply a way to protect U.S. producers from competition,“ says Kynoch.

The preliminary duty of 14.06%, based on the dollar value of the animal, came into effect on October 20. It may be replaced by a final margin in February 2005. If the U.S. International Trade Commission determines that Canadian swine imports have not injured U.S. producers –a decision that is expected in April 2005 – duties will be lifted and refunded to ‘Importers of Record’.

Manitoba Pork Council is confident the ITC’s decision will be in Canada’s favour. “Canadian hogs are essential to the continued prosperity of the U.S. hog industry,“ says Kynoch. “They need our hogs to keep their finishing barns stocked and their packing plants operating. What’s more, with U.S. producers currently enjoying record high prices they are going to have a hard time proving injury.“

Source: Manitoba Pork Council - 20th October 2004