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INSIDE “[w]e are not trying to close the border or otherwise disadvantage Canadian produc-
ers. We are looking for a way to mitigate the impact of the subsidies.”4 However, not
every hog producer agreed with the NPPC. According to Pete Hisey, from
Meatingplace.com, the Pork Trade Action Coalition placed an advertisement in the Des
Moines Register titled “Don’t Tax Our Pigs.” Seventy-seven Iowa hog farmers who rely
• Ag law bibliography on access to Canadian pigs to keep their independent farms profitable sponsored the
advertisement.5 Packers and producers joined forces to both support and oppose this
• Beef checkoff case.
The investigation focused on whether (1) the Canadian government gave unfair
• Economic loss doctrine incentive payments (also known as countervailing duties or subsidies) to Canadian
Hog Producers to raise hogs which violate trade agreements, and (2) Canadian Hog
• Water rights debate Producers sold hogs in the U.S. for lower prices than in Canada (Anti-dumping).
The investigation of the Hog Producer’s allegations started with the U.S. Department
• Fenced livestock of Commerce (“DOC”) focusing on Canadian countervailing duties.6 In August 2004,
the DOC investigation provided an initial determination that the Canadian live swine
industry was not the recipient of countervailable subsidies. On March 11, 2005 the ITC
agreed with the DOC and overturned the countervailing determination.7
In October 2004, the DOC initiated an anti-dumping tariff on Canadian hogs ruling
there are “reasonable indications” that dumping is occurring. Canadian Hog Produc-
ers had to post a bond of approximately 13%-15% of the value of each hog that crossed
the border. The bond amount was held until the ITC ruled on the issue in April 2005.
Solicitation of articles: All AALA The ITC sought to determine whether a U.S. industry is materially injured by reason
members are invited to submit articles of the imports under investigation.8
to the Update. Please include copies of Had the ITC ruled that Canadian Hog Producers had violated anti-dumping rules;
the money collected would have been paid to the hog producers and packers that
decisions and legislation with the ar-
petitioned the government to impose the tariffs. The return of money to petitioners
ticle. To avoid duplication of effort,
is a controversial amendment inserted in H.R. 4461, The Agriculture, Rural Develop-
please notify the Editor of your pro- Cont. on page 2
posed article.
ISSUES
was established to provide up to $10 million in assistance to dairy producers in counties
declared disaster areas by the President due to a hurricane in 2004. The CCC has issued
proposed regulations implementing the program. 70 Fed. Reg. 30009 (May 25, 2005).
5
ment, Food and Drug Administration, and lected bond money was returned to Cana- See Group hits Canadian pork anti-dump-
Related Agencies Appropriations Act for dian Hog Producers. ing duties, Pete Hisey at http://
FY 2001, known as “The Byrd Amend- The June, 2005 Journal of the Association of www.meatingplace.com/DailyNews/
ment” written by Senator Robert Byrd (D- Corporate Counsel contains a detailed ar- pop.asp?ID=13319, November 1, 2004
WV) to protect the U.S. steel industry.9 ticle about using anti-dumping for busi- 6
See Notice of Initiation of Countervailing
Prior to the Byrd Amendment, the money ness advantage.13 Duty Investigation: Live Swine From Canada,
went to the U.S. Treasury. Upon signing –Jeffrey A. Feirick, Hatfield, PA 69 FR 19818 (April 14, 2004)
7
the bill, President Clinton in a statement Any opinions, findings, conclusions, or Int. Trade Comm. Investigation No.
said “…I note that this bill will provide recommendations expressed in this article are 701-TA-438, Live Swine From Canada, 70
select U.S. industries with a subsidy above those of the author and do not necessarily Fed. Reg. 13542 (March 21, 2005)
8
and beyond the protection level needed to reflect the view of The Clemens Family 19 U.S.C. § 1673d(b).
9
counteract foreign subsidies….I call on Corporation. See 106th Cong. 106-387, Included in that
the Congress to override this provi- bill as amendment Title X, was inserted by
sion….”10 On January 16, 2003, the World 1
See U.S. Int. Trade Comm. Public Report: Senator Robert Byrd (D-WV), the Contin-
Trade Organization Appellate Body ruled Live Swine From Canada,(Investigation No. ued Dumping or Subsidy Offset Act of 2000
the Byrd Amendment was unfair.11 Under 731-TA-1076 (Final), USITC Publication (known as the Byrd Amendment).
10
the Byrd Amendment, a producer who 3766, April 2005). The report contains Statement by the President: H.R. 4461,
supported the case, could potentially col- background information concerning the The Agriculture, Rural Development, Food
lect large sums of money. The payment facts the Commission used in its decision. and Drug Administratin, and Related
was unavailable to any entity that op- Commissioner Daniel R. Pearson did not Agencies Appropriations Act for FY 2001.
posed the tariff. Then, for each year, the participate in this case. (October 28, 2000)
2 11
amount of the tariff would be raised or Id., p.4 See WTO Appellate Body Condemns the
3
lowered depending on the actual damage, U.S. Int. Trade Comm. General Infor- “Byrd Amendment” The US Must Now Repeal
providing an income for years to come. mation, Instructions, and Definitions for It, at http://www.eurunion.org/news/press/
The ITC ruled against the Hog Produc- Commission Questionnaires, Live Swine 2003/2003003.htm. January 16, 2003
12
ers on April 6, 2005 and terminated the from Canada investigations Nos. 701-TA- See U.S. Int. Trade Comm. Public Report:
Live Swine From Canada investigations.12 438 (Preliminary) and 731-TA-1076 (Pre- Live Swine From Canada,(Investigation No.
Tariffs were dropped and previously col- liminary) p.2. 731-TA-1076 (Final), USITC Publication
4
See Why Canadian Hog Subsidies Are 3766, April 2005).
13
Injuring U.S. Hog Producers, at http:// Neeraj Bali and John Fotiadis, Using
www.nppc.org/hot_topics/ Anti-dumping for Business Advantage,
banfftradetalk012005.pdf pages 23, 24. ACC Docket 23, no. 6: p. 74-85.
Annual Conference: President-elect Don Uchtmann has completed the program for the 2005 Annual Agricultural
Law Symposium on October 7 & 8, 2005 at the Country Club Plaza Marriott in Kansas City, MO. The complete
conference brochure is posted on the AALA web site and is being printed and mailed to all members. See the link on
the main home page.
The conference brochure contains a reminder about the 2005 Membership Recruitment Program and three
membership brochures. If you recruit a non-member to attend the 2005 conference, you will receive four chances
in a drawing to win $345.00, the cost of a member registration to the conference. You can request additional conference
brochures from me. Be sure to add your name to the conference registration form for any non-member you recruit
for the conference.
If your firm would like to sponsor one of the food breaks, breakfasts, lunches or the Friday evening reception,
please let me know.
Nominations for Annual Scholarship Awards. The Scholarship Awards Committee is seeking nominations of
articles by professionals and students for consideration for the annual scholarship awards presented at the annual
conference. Please contact Jesse Richardson, Associate Professor, Urban Affairs and Planning, Virginia Tech,
Blacksburg, Virginia 24061-0113,(540) 231-7508 (phone) (540) 231-3367 (fax) email: jessej@vt.edu