Canada Border Services Agency starts a dumping and subsidy investigation into grain corn

Ottawa, September 16, 2005 - The Canada Border Services Agency (CBSA) announced today the initiation of an investigation into the alleged injurious dumping and subsidizing of grain corn in all forms, excluding seed corn (for reproductive purposes), sweet corn, and popping corn, from the United States of America.

The investigation follows a complaint filed by the Ontario Corn Producers' Association, the Fédération des producteurs de cultures commerciales du Québec and the Manitoba Corn Growers Association Inc. The associations allege that the dumping and subsidizing of the goods in question is harming Canadian production by causing price erosion, price suppression, decreased incomes, increased burdens on government support programs and reduced acreage planted.

Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter's domestic market or at unprofitable prices. Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.

The decision to launch this investigation has been made after researching and analyzing information provided by the Canadian industry and by conducting an extensive analysis and evaluation of the facts to determine whether there exists sufficient evidence of dumping, subsidization, and injury to warrant an investigation.

The CBSA will now investigate whether the imports are being dumped or subsidized and will make a decision by December 15, 2005. While the CBSA is conducting its investigation, the Canadian International Trade Tribunal (Tribunal) will begin a preliminary inquiry to determine whether the imports are harming the Canadian producers. The Tribunal will issue a decision by November 15, 2005.

If there is a large increase in harmful imports and the Tribunal decides that retroactive application of anti-dumping or countervailing duty is justified, duty could be levied on the goods brought into Canada as of today.

For further clarity, "grain corn in all forms" includes whole kernel corn and grain corn that have been processed in a limited way by cracking, crushing, rolling, grinding or flaking and includes ground corn such as corn flour, corn grits, corn meal, corn bran, sharps and other residues, corn which is hulled, sliced or kibbled, as well as grain corn mixed with other grains and oilseed (such as millet) which can be separated from the grain corn after importation. The product definition also includes white dent corn.

A copy of the Statement of Reasons, which provides more details about this investigation, will be available on the CBSA's Web site at www.cbsa.gc.ca/sima within 15 days.

For more information on antidumping and countervailing or on the Special Import Measures Act, please visit the CBSA's Web site at www.cbsa.gc.ca/sima.

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