Canada Responds to Tariff Hike
Omaha (DTN) -- The increase in import duties on Canadian wheat
approved by the US Commerce Department today are "unfair," said
Canadian Wheat Board President Adrian Measner at a press conference in
Winnipeg today.
The Commerce Department ruled that the Canadian Wheat Board receives
subsidies and dumps wheat into the US market. The ruling raises the
tariff on Canadian hard red spring wheat to $14.16 and on Canadian durum
to $13.55. Measner said he will fight for free, clear and fair
access to the American market. He added that selling Canadian wheat
will prove "very difficult" if the tariff increases stand.
The chances that these tariff increases will shut Canadian wheat and
durum out of the US market are "very high", Measner said.
He estimates that the tariffs could remain in place for roughly five years
at a cost to Canada of at least $250,000,000. Tariffs, once imposed,
are difficult to remove, he said.
A US International Trade Commission hearing on this issue is scheduled
for September 4th. The hearing will determine whether Canadian
subsidies and what dumping have actually injured the US hard red spring
and durum wheat industries.
"If common sense prevails," Measner said, "they will
decide there is no injury. We export between just 3 and 5 percent of
their wheat. It's a very small amount which makes it about
impossible to have a price impact."
The Canadians will now focus on the outcome of the September hearing.
Canadian Wheat Board Chair Ken Ritter said, "We are focusing on the
injury side of the case and will put every effort into reasonable proving
there is not injury tot he US market place."
The ITC's final decision on injury is expected October 13th.
Ritter said the tariffs can be imposed before that decision is made.
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