Associated Press | October 3, 2003
WASHINGTON (AP) - Imports of Canadian-subsidized hard red spring wheat, used for making flour and bread, are harming American farmers, the U.S. International Trade Commission ruled Friday, clearing the way to begin imposing a tariff.
The commission, however, said it could find no such harm from imports of durum, a type of wheat used to make pasta.
The rulings were prompted by a complaint from the North Dakota Wheat Commission and other U.S. farmers that said Canada was dumping wheat into the U.S. market - selling it for less than it costs to produce.
U.S. flour millers and pasta makers, including Barilla America Inc., had sided with Canada in the dispute, contradicting the farmers' complaint. They said Canada didn't sell wheat priced cheaper than U.S. wheat.
The Commerce Department issued a preliminary ruling in August that Canada was unfairly subsidizing its wheat farmers and dumping grain on the U.S. market. It recommended a 14 percent tariff - if the commission determined that American farmers were being harmed.
Friday's decision means that red spring wheat will soon face a penalty tariff, but durum imports won't. The tariff will not go into effect until the Commerce Department issues a final determination on the proper size of the tariff. Commerce officials said that determination would be made in the next few weeks.
``It's been a long time coming,'' said Sen. Byron Dorgan, D-N.D. ``Finally, American trade officials are standing up for America's family farmers.''
Dorgan said he disagreed with the commission's finding that imports of Canadian durum are not harming farmers but added, ``Half a loaf is better than none.''
Alan Tracy, president of the U.S. Wheat Associates, said the Commerce Department and ITC decisions ``are so clear that more people than ever now understand the anticompetitive nature of the Canadian wheat system.''
However, Jim Bair, a vice president at the North American Millers' Association, said the commission's decision on durum wheat recognizes that U.S. farmers don't produce enough of it to satisfy the total demand.
Ken Ritter, chairman of the Canadian Wheat Board, welcomed the decision on durum wheat, saying it means the Canadians won't have to pay a 14 percent tariff.
But the commission's determination that U.S. farmers suffered from imports of Canadian wheat ``is wrong,'' he said. ``We are going to appeal this.''
The board represents more than 80,000 Canadian growers.
Last year, the United States imported 15 million bushels of hard red spring wheat from Canada and 14 million bushels of Canadian durum wheat.
The North Dakota Wheat Commission said those figures represent a third of the U.S. market and argues that indicates there was dumping.
Neal Fisher, administrator of the organization, said the result would not affect prices for bread and other baked goods.
He said that for the case to significantly affect the price of bread, ``we'd have to have duties that are much higher than this level.''
On the Net
U.S. International Trade Commission: http://www.usitc.govAssociated Press:
