SASKATCHEWAN DISAPPOINTED IN U.S. WHEAT AND DURUM RULING

Today's ruling by the US Department of Commerce in its wheat and durum investigations although disappointing was not unexpected.

On August 29th, the US released its final determination in both the countervailing and dumping investigation of Canadian durum and hard red spring wheat. The final determination by the US sets final countervailing duty at 5.29 per cent along with anti-dumping duties of 8.87 per cent on hard red spring wheat and 8.26 per cent on durum wheat.

"Saskatchewan is extremely disappointed that the U.S. government persists in attempts to restrict Canadian wheat and durum exports," said Deputy Premier and Agriculture, Food and Rural Revitalization Minister Clay Serby. "This trade action is completely unwarranted and without justification, the province will seek to have the findings challenged through both NAFTA and WTO dispute settlement panels."

Antidumping measures are generally directed at offsetting pricing actions of private firms that sell their products on the export market at lower prices than on the domestic market, or below their cost of production. Countervailing duties are meant to mitigate any benefit exporters receive from government subsidies.

"The rising protectionist sentiment in the US is a disturbing trend," Intergovernmental Affairs Minister Eldon Lautermilch said. "The ongoing trade challenges, the continued subsidization of their own farmers, and an apparent lack of any real ambition by the US in the WTO negotiations should be of concern to all exporting nations."

The Organization for Economic Cooperation and Development (OECD) tracks the support provided by countries such as Canada and the US. The OECD numbers clearly show that the US wheat farmers receive twice the level of support as Canadian wheat farmers.

Although the findings were considered final determinations in both the countervailing and antidumping investigations, the duties could be dropped if the US International Trade Commission concludes US producers were not injured by the Canadian imports. The final injury ruling is expected later this fall.

-30-

For More Information, Contact:

Anna Arneson Government Relations and Aboriginal Affairs Regina Phone: (306)787-8008 Cell: (306)533-2168

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