SASKATCHEWAN TO FIGHT U.S. WHEAT AND DURUM RULING

Saskatchewan will continue to work with the federal government, other provinces and the Canadian Wheat Board (CWB) to fight a U.S. decision that would place an antidumping duty of 6.12 per cent on hard red spring wheat and 8.15 per cent on durum wheat exports from Canada. This is in addition to the provisional 3.94 per cent countervailing duty placed on those exports on March 4th, 2003.

The U.S. Department of Commerce today issued a preliminary determination that Canadian Wheat Board marketing practices resulted in red spring and durum wheat exports being dumped into the U.S. As early as next week, exporters of these products will be required to post bonds at the level of the duty on all exports to the U.S. market. These bonds will held in trust pending the final outcome of the investigation later this fall.

"Through this antidumping case and the ongoing countervail investigation, the U.S. continues to attempt to restrict Canadian wheat and durum exports," Intergovernmental Affairs Minister Eldon Lautermilch said. "This trade action is costly to defend and disruptive to the industry, but I am convinced that we will succeed in overturning both today's antidumping and last month's countervail decisions as these cases move forward to a final decision later this fall."

Specific details of the U.S. decision are not yet available.

"Saskatchewan is extremely disappointed that the U.S. government has taken this action. It is particularly questionable given the provisions in the new U.S. Farm Bill and their massive domestic support programs are contributing to over production and depressing market prices," Deputy Premier and Agriculture, Food and Rural Revitalization Minister Clay Serby said.

Antidumping measures are generally directed at offsetting pricing actions of private firms that either export product below comparable prices in their own domestic market, or below their cost of production.

This is only the preliminary antidumping determination. Saskatchewan will continue working with the federal government, the CWB, and other provinces to have both the antidumping and the countervail decisions reversed. If the U.S. upholds either ruling in the final determination later this fall, Saskatchewan will push the federal government to challenge the U.S. under NAFTA and the WTO.

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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