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Times Colonist | April 9, 2004

TORONTO (CP) -- An agricultural trade battle between Canada and the United States heated up Thursday, with the United States saying it will investigate possible subsidies of imported Canadian pigs and Canada moving to have duties on certain of its wheat exports lifted.

"We believe that any investigation into allegations made by the U.S. industry will show that our hog exports are not subsidized," International Trade Minister Jim Peterson said Thursday in Ottawa.

Jacqueline LaRocque, a spokeswoman for Peterson, said the United States eliminated duties in 1999 after finding that Canada's hog exports were fairly traded and that the same is still true five years later.

Peterson was reacting to a U.S. Department of Commerce decision to consider countervailing and anti-dumping duties on live hog imports from Canada. The U.S. National Pork Producers Council requested the move March 5. Duties can only be imposed if the U.S. authorities make certain determinations about subsidization, dumping and injury to the U.S. domestic industry as a result of the hog imports.

In 2003, Canada exported about 7.2 million hogs valued at $500 million to the United States -- its main market for live swine exports. The main exporting provinces were Ontario, Manitoba, Saskatchewan and Alberta.

Also Thursday, Peterson said his government is working to have duties on Canadian hard red spring wheat lifted.

The government is asking the World Trade Organization to investigate a U.S. determination that the imported wheat is injuring American producers.

"Canada neither dumps hard red spring wheat into the American market nor subsidizes hard red spring wheat shipments to the United States," Agriculture and Agri-Food Minister Bob Speller said.

A 14.15 per cent duty was imposed on the wheat last October. The duty is to remain in place for five years, with annual reviews.Times Colonist:

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