The Pork Trade Action Coalition (PTAC) said that the International Trade Commission (ITC) vote that live swine imports from Canada have not injured the U.S. domestic market is good news for both American and Canadian farmers and will help strengthen the North American hog market. The ITC vote means that that duties ranging up to 18.87 percent assessed by the Commerce Department will not be imposed.

The ITC vote ends attempts by the National Pork Producers Council (NPPC) and other groups to impose duties on live swine imports from Canada. The groups filed a trade petition in 2004 alleging that Canadian hog producers were receiving illegal subsidies from the Canadian government and were dumping (exporting hogs at a price below their cost of production).

ITC Commissioners voted 5 to 0 that imports of live swine from Canada have not caused injury to the U.S. swine industry during 2002-2004 the period investigated. Final duty margins announced in March by the Commerce Department are now eliminated based on the ITC decision. The Commerce Department earlier rejected the petitioners' allegations of illegal subsidies.

"This is a victory for the hundreds of American farmers who have adapted to the advantages offered by NAFTA and who would have been devastated by the proposed duties," said John R. Block, former U.S. Secretary of Agriculture and Senior Advisor to the Pork Trade Action Coalition (PTAC). "PTAC is very pleased that after examining the facts, the ITC made the right decision."

"The ITC vote does not come as a surprise," continued Block. "The overall hog industry is more efficient. Swine imports from Canada are just 3.3 percent of the total U.S. market. More importantly, U.S. hog prices are near record levels, and the U.S. herd is growing. We hope that the defeat of the petition marks the beginning of a new era of cooperation in the North American hog market. Trade in swine with Canada has helped U.S. pork producers by capitalizing on competitive advantages in the U.S. in feeding and slaughter, as well as advantages in Canadian farrowing."

Canadian pigs are a vital component in U.S. pork industry productivity and profits-- allowing U.S. packers (the companies that slaughter the hogs and turn them into pork products) and processors to remain competitive, and meet the combined demand for pork in the U.S. and in export markets that the U.S. has been able to develop. Because there is more capacity to slaughter and process hogs in the U.S. than the total supply of domestic born hogs, Canadian imports allow more hogs to be slaughtered therefore increasing the efficiency of packers' production lines. Canadian imports have also not affected U.S. live swine production, which has been increasing.

Block also noted that there is a new issue that Canadian and U.S. farmers now must overcome to conduct unfettered trade over the border: The Canadian Government announced retaliatory tariffs on imports of U.S. live swine last week. The announcement came after Congress failed to repeal the Byrd Amendment, a 2000 U.S. law ruled illegal by the World Trade Organization.

The Byrd Amendment directs U.S. Customs to distribute monies to U.S. companies that petitioned or supported antidumping and countervailing duty actions, while other duties are distributed to the U.S. Treasury.

"We are pleased that NPPC has joined the growing number of companies and associations calling for repeal of the Byrd Amendment," said Block. "PTAC looks forward to working with NPPC to strengthen the hog market for all American and Canadian farmers, and our next task will be to end the retaliatory tariffs by working to repeal the Byrd Amendment."

Block concluded by thanking PTAC members. "The victory at the ITC could not have been accomplished without the work of U.S. and Canadian farmers, finishers and others who came together to form PTAC and to fight the antidumping trade petition."

For more information on the Pork Trade Action Coalition, please visit www.porktrade.org or contact Dara Klatt at 202-466-6210 or Dara.Klatt@pbnco.com.

Date: 4/21/05