May/June 2006
Index
Canadian International Trade Tribunal "No Injury" Finding April 18, 2006
IN THE MATTER OF
an inquiry, under section 42 of the Special Import Measures Act, respecting:
THE
DUMPING AND SUBSIDIZING OF UNPROCESSED GRAIN CORN ORIGINATING IN OR EXPORTED
FROM THE UNITED STATES OF AMERICA
FINDING
The Canadian International Trade Tribunal, under the provisions of section 42
of the Special Import Measures Act, has conducted an inquiry to determine whether
the dumping and subsidizing of unprocessed grain corn, excluding seed corn (for
reproductive purposes), sweet corn and popping corn, originating in or exported
from the United States of America have caused injury or retardation or are threatening
to cause injury to the domestic industry.
This inquiry
is pursuant to the issuance by the President of the Canada Border Services Agency
of a preliminary determination dated December 15, 2005, and of a final determination
dated March 15, 2006, that the aforementioned product originating in or exported
from the United States of America has been dumped and subsidized.
Pursuant to subsection 43(1) of the Special Import Measures Act, the Canadian
International Trade Tribunal hereby finds that the dumping and subsidizing of
the aforementioned product originating in or exported from the United States
of America have not caused injury and are not threatening to cause injury to
the domestic industry.
Canadian Corn Producers' Response
April
18, 2006
For immediate release
Guelph, Ontario
CITT Decision Disappointing; CPP Considering Options
The Canadian International Trade Tribunal (CITT) today announced a "no injury" finding in the Canadian Corn Producers' anti-dumping and countervail duty complaint against imports of grain corn from the United States.
The Canadian Border Services Agency (CBSA) had twice previously found, in a preliminary decision December 15, 2005 and a final determination March 15, 2006, that 100% of U.S. grain corn imports were subsidized and dumped into Canada. The CITT itself, in a preliminary finding November 15, 2005, had found sufficient evidence of injury to warrant proceeding with further investigations and public hearings March 20 - 26, 2006.
"Given the preliminary CITT injury finding, and CBSA's two subsidy and dumping findings, today's CITT announcement that no injury was found obviously is disappointing", said Brian Doidge, spokesperson for the Canadian Corn Producers. "Unfortunately, in this David vs Goliath contest, Goliath was able to convince the Tribunal that subsidized and dumped imports backed by 2.4 billion more bushels of surplus US grain corn have not and will not cause injury. We do not agree with that assessment and are considering all our options. We are not done yet. Canadian corn farmers are being pushed out of business by unfair and illegal US subsidies. We will not give up; our future and the future of the Canadian grain and oilseed sector is at stake."
With
the CITT decision today, the preliminary duty of US$1.65/bushel imposed December
15, 2005 on imports of US grain corn is removed and all duties already assessed
will be returned.
Comment from Agriculture and Agri-Food Canada
(Bi-weekly Bulletin, Volume 18, Number 7, April 1, 2005)
"Corn production
in the US has been strongly supported by government support programs, which
have caused area seeded to corn in the US to steadily increase over time, and
public and private research funding, which has caused corn yields to increase."
Statements
by Mr. Jim Wheeler, Assistant Deputy Minister OMAFRA to the OFA and CFFO, March
2006
( Ed. Note: Despite
the wealth of evidence detailed above, including from Ag Canada, that U.S. grain
corn production is heavily subsidized, which causes U.S. corn acreage to expand
and production to increase, which artificially depresses corn prices on the
CBOT, which in turn depresses corn prices in Canada, and 100% of resulting imports
into Canada are dumped at prices below the cost of production, this is what
Assistant Deputy Minister Wheeler had to say about competing in that kind of
business environment.)
"If the market says there is lots of this product out there and the market
is not returning any more, that is the market signal." "If you can't
compete with imported apples, should you be growing apples?" The fact that
the market and market signal for grain corn in Canada is grossly and artificially
distorted is apparently of no concern and not an issue in the design of the
Canadian Agricultural Income Stabilization program. "CAIS is doing what
it was designed to do. It was not designed to address concerns realized because
of long-term declines. It wasn't meant to keep everyone in business."
(In other words, the government in Ontario is apparently content to let the
U.S. Farm Bill dictate the future of Ontario agriculture and the future of the
grain and oilseed sector in particular.)
Pelee
Seed Shuts down for 2006-Blames Unstable Market
Pelee Seed Company Limited announced on April 24 that they have been unable to secure sufficient parent seed corn acres to operate a viable business for the 2006 season.
Changes within the seed industry, mergers, trait development and an overall unstable agricultural market have reduced the industry's needs for Pelee's services.
Pelee Seed thanks all past and present staff, customers and suppliers. Over the last seven years, Pelee Seed Company has contributed over $1.2 million dollars in wages and benefits to the economy of Pelee Island.
Pelee Seed Company Limited was established in 1988 to continue Pelee Island's strong tradition of parent seed corn production and to provide much needed employment on the Island. Pelee Island is noted for its excellent isolation, a unique lake effect climate moderated by Lake Erie, at the same latitude of Des Moines, Iowa with the largest number of frost-free days in Canada.
Ontario
Farmland Values Increase is Second Highest in the Country
The average value
of farmland in Ontario increased by 3.8 per cent in the second half of 2005,
according to Farm Credit Canada (FCC) research.
Farmland values continue to be mixed in Ontario. This overall increase this period is higher than the 1.8 per cent increase during the first half of the year.
Northern Ontario reports stronger demand, particularly in the Timiskaming and Cochrane regions, as the beef industry recovers from BSE. Land values in the commuter shadow around major urban areas also showed slight increases.
Land values in Canada continue climbing. The Ontario increase helped drive up the Canadian average by 1.5 per cent in the last six months of 2005. This nearly matches the 1.6 per cent increase in the first half of 2005, resulting in an overall 3.1 per cent rise for the year. This is consistent with Canada's growth trend since 2000.
The complete Farmland Values Report is available on the FCC website at http://www.fcc-fac.ca/en/Products/Property/FLV/Fall2005/.
An article, "Subsidies are not the answer", from professors Sylvain Charlebois and Wolfgang Langenbacher appeared in the April 25, 2006 edition of the Globe and Mail. The following response was printed in the April 26, 2006 edition.
Re Subsidies Are Not The Answer (April 25): Sylvain Charlebois and Wolfgang Langenbacher argue that subsidies are not the answer for farmers. Canadian Corn Producers, a coalition of Ontario, Quebec and Manitoba corn farmers, strongly disagrees. It is difficult to overstate the economic hardship that all Canadian farmers face. Both politicians and agricultural-processing industries have recognized this crisis.
Mr. Charlebois and Mr. Langenbacher make a fundamental mistake when they compare farmers to manufacturing plants that are closing due to systemic factors. Canadian farmers can deal with fluctuating currency and other systemic factors. However, Canadian farmers cannot (and should not have to) compete with $200-billion in agricultural subsidies that U.S. farmers receive and that the World Trade Organization deems illegal. If the government does nothing, farmers will simply go out of business-not because of the effects of globalization, but because they cannot compete with the U.S. Treasury.
BRIAN DOIDGE,
general manager,government and industry relations,
Ontario Corn Producers'Association and spokesperson for the Canadian
Corn Producers, Guelph,Ont.
Letter from the Ontario Agri Business Association to Minister Strahl and Ontario Conservative MPs, March 21, 2006
"The Ontario Agri Business Association is very concerned with the current financial situation facing Ontario's grain and oilseed sector, as it impacts all industry stakeholders, including producers, agri businesses and value added processors. Ontario's grain and oilseed production sector has experienced several consecutive years of poor market returns, and currently is in the midst of a very serious financial situation with negative producer returns from the market. OABA would submit that the relationship between negative returns in the Ontario grain and oilseed sector is date to passage of the 1995/96 U.S. Farm Bill. It is increasingly apparent that the negative financial situation facing the Ontario grain and oilseed sector is a direct result of the subsidy levels established by the U.S. Farm Bill. The most recent U.S. Farm Bill signed by President Bush on May 13, 2002 effectively extends these high U.S. subsidy levels to the U.S. grain and oilseeds sector through until at least 2007, and there is widespread consensus that the next U.S. Farm Bill in 2007 will continue with these high subsidy levels through to 2012."
"It is important
to note that the financial stress currently being experienced by the grain and
oilseed production sector goes well beyond the "farm gate" and is
having a negative financial impact on rural communities and the many rural agri-businesses
that provide vale added products, services and marketing opportunities to Ontario's
agri-food production sector. OABA would submit that the actions of a coalition
of Canada's main corn producer associations in Manitoba, Quebec and Ontario
to request the Canada Border Services Agency (CBSA) to initiate a formal investigation
into the injurious dumping and subsidization of U.S. grain corn is a direct
response to an apparent lack of action on the part of provincial and federal
government to adequately address the very serious financial crisis facing the
grains and oilseeds sector."
An Open Letter April 25, 2006 from CFA to Prime Minister Harper
An open letter to:
Rt. Hon. Stephen
Harper
Prime Minister of Canada
Dear Prime Minister:
On April 5, 2006 Canada's farmers stood shoulder to shoulder on Parliament Hill to demonstrate to all Canadians that our country's food supply is in serious jeopardy. It is in jeopardy because Canada's farmers can no longer afford to pay higher and rising costs of producing food for Canadians. It is in jeopardy because Canadian farm income is showing the three worst years in history. It is in jeopardy because Canada can no longer attract or keep its young farmers because they cannot afford to farm.
Prime Minister, it is disgraceful that a wealthy, progressive and socially just society like Canada shows disregard for its farmers and its food production supply. Farmers and food production are taken for granted in this country. This uniquely Canadian situation is unacceptable. Other developed, and even less developed, nations demonstrate that they value domestic food production and its contribution to their nation's economy. They support their farmers.
Canada's farmers and Canadians of all walks of life deserve better. It is imperative that Canada immediately recognizes the importance of food production and the importance of sustaining a diverse, productive and profitable domestic food supply.
Shortly after farmers left Parliament Hill last week you stood in the House of Commons and said: "Nothing is more important than the family farm. The farm has been a critical element in the formation of our nation."
Prime Minister, we submit the family farm will continue to be critical to the development and well being of our nation. And yet, our farmers are struggling to plant crops and raise livestock, are working in a stressful and uncertain business environment and are losing money. Farmers and our farm families are being forced out of production.
Action is needed now - immediately. Your government needs to act now to recognize the additional programs developed by farmers to address the farm income crisis. Your government needs to act now, in collaboration with the provinces, to provide adequate funding to these programs to ensure the survival of Canada's farms that are so important to our nation. Your government needs to act now on farm income and critical trade issues to provide stability and predictability so our innovative Canadian farmers can grow and develop our industry to its full potential.
We took you at your word when you told the House of Commons that "we cannot really talk about sovereignty as a nation if we do not have a strong role in the production of our food."
Prime Minister, the time to take a strong role in the production of our food is right now. Canada's farmers and the Canadians who depend on them cannot wait.
Sincerely,
On behalf of Canada's farmers,
Bob Friesen, President,
Canadian Federation of Agriculture
Laurent Pellerin, President, L'Union des Producteurs Agricoles
Dick Klein Geltink, President, British Columbia Agriculture Council
Bill Dobson, President, Wild Rose Agricultural Producers
Ken McBride, President, Agricultural Producers Association of Saskatchewan
David Rolfe, President, Keystone Agricultural Producers
Ron Bonnett, President, Ontario Federation of Agriculture
Frazer Hunter, President, Nova Scotia Federation of Agriculture
Vince Kilfoil, President, Agricultural Producers Association of New Brunswick
Eddy Dykerman, President, Prince Edward Island Federation of Agriculture
Merv Weisman, President, Newfoundland & Labrador Federation of Agriculture
Jacques LaForge, President, Dairy Farmers of Canada
Laurent Souligny, President, Canadian Egg Marketing Agency
David Fuller, President, Chicken Farmers of Canada
Brent Montgomery, President, Canadian Turkey Marketing Agency
Ed De Jong, President, Canadian Broiler Hatching Egg Marketing Agency
Merrill Harris, President, Canadian Sugar Beet Producers' Association
Clare Schlegel, President, Canadian Pork Council
Marcus Janzen, President, Canadian Horticultural Council
Denis Richard, président, Co-op fédérée
Ken Ritter, Chair, Canadian Wheat Board
Canadian Federation of Agriculture's "Support For Canadian Agriculture"
As a follow-up to the April 24 press conference where the open letter to the Prime Minister listed above was presented and discussed, a breakfast and all-day drop-in for MPs on Parliament Hill was hosted Tuesday April 25. The following 1-page documentation was circulated to MPs.
Support
for Canadian agriculture
is support
for a secure, safe food supply for all Canadians!
A message from Canada's farmers…
Canadian farmers want to continue growing healthy food for Canadians but can't compete with foreign subsidies or against lower standards on imported food. We need our Canadian government to implement the programs designed by Canadian farmers to address the income crisis!
Farmers can no longer subsidize farm prices that are below cost using off-farm jobs! Make the call to secure a Canadian food supply!
| * | Support the Risk Management and Production Insurance programs put forth by farmers; |
| * | Immediate bridge funding is needed to keep farmers in production; |
| * | The funding must be flexible to allow provinces to help their producers; |
| * | Farmer marketing systems such as supply management must have ongoing government support. |
The farm message
Farmers across Canada and their families are caught in an income crisis and the government response is inadequate.
Government programs are not protecting Canadian farmers' incomes from high foreign farm subsidies and lower standards. These subsidies have forced the world price of grains and oilseeds and other agricultural products below our farmers' cost of production. Canada's farm organizations have designed workable programs for grains and oilseeds, for fruits, vegetables and livestock to sustain our domestic food source - but the federal government has yet to act.
These programs would bring farmers, federal and provincial governments together as partners to assist our producers when world market conditions or natural disasters threaten farm income and your food supply.
Farmers, their families and all Canadians encourage the government to act now to protect the future of domestic food production in Canada.