U.S. TRADE RULING A VINDICATION FOR CANADIAN HOG PRODUCERS

Saskatchewan hog producers were vindicated yesterday as the U.S. Department of Commerce (DOC) released the preliminary determination in its countervailing duty (CVD) investigation. The DOC found that no countervailable subsidies were being provided to Canadian producers or exporters of live swine.

"We're pleased to see that the U.S. government's preliminary findings support our contention that Canadian hog producers are not receiving countervailable subsidies," Agriculture, Food and Rural Revitalization Minister Mark Wartman said. "As these U.S. trade investigations progress, Saskatchewan will continue working with the industry, the federal government and other provincial governments to defend our programs and the interests of Canadian hog producers."

Two Saskatchewan programs -- the Short-Term Hog Loan Program and the Saskatchewan Livestock and Horticultural Facilities Incentive Program -- were investigated by the DOC but neither program was found to provide a substantive measure of countervailable subsidy.

"In our increasingly integrated market, these kinds of trade investigations serve only to constrain cross-border trade and investment. Particularly problematic is the ever present threat of an anti-dumping duty in a situation like the hog sector, where you have an integrated marketplace and highly cyclical prices," Government Relations Minister Len Taylor said. "Once again, these cases show why we need a new trade remedy system in North America that better reflects the reality of our integrated markets."

While no duties are being imposed as a result of today's determination, Canadian hog producers still face an anti-dumping (AD) investigation. The preliminary results in the AD investigation are expected on October 14th, 2004.

Final determinations in the CVD and AD investigations are currently scheduled for December 28th, 2004, with a final injury determination expected 45 days later. No duties can be applied unless the determination is positive.

In 2003, Saskatchewan exported a total of 201,131 live hogs to the U.S. (2.7 per cent of the Canadian total), with a value of C$23.9 million.

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For More Information, Contact:

Scott Brown Agriculture, Food and Rural Revitalization Regina Phone: (306)787-4031

Anna Arneson Government Relations and Aboriginal Affairs Regina Phone: (306)787-8008