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2003
CWB to appeal ITC ruling on spring wheat
October 3, 2003
Winnipeg – The Canadian Wheat Board (CWB) announced it would move swiftly to appeal today's ruling by the International Trade Commission that imports of Canadian spring wheat cause injury to American farmers. Despite a vote of two-two by ITC commissioners on injury, punitive tariffs of 14.15 per cent on Canadian spring wheat will be maintained. The commissioners voted unanimously (four-zero) to remove tariffs of 13.55 per cent on durum wheat.
Ken Ritter, chair of the CWB's farmer-controlled board of directors, said he was very disappointed by the ITC's split decision. "We expected to win on both, but because of the way U.S. trade law is configured, a tie favours the plaintiff," he said.
"U.S. trade law overall is tilted heavily in favour of plaintiffs in these kind of international disputes, and yet in nine previous investigations, the CWB was found to be a fair trader on both wheat and durum. Nothing has changed; we are still a fair trader," Ritter said.
The CWB will launch its appeal of the decision on spring wheat after the ITC, an American government body composed of political appointees, releases its written decision the week of October 13.
"The evidence presented to the ITC both by the CWB and by our American customers was comprehensive in showing there is absolutely no injury caused by the import of either Canadian spring wheat or durum," Ritter said. "I can only conclude the ITC's determinations on spring wheat were flawed. There is no basis in either fact or law for its decision."
Ritter said the split decision on spring wheat reflects the uncertainty of the ITC on the issue, and expressed confidence that it would be overturned on appeal. Under U.S. trade law, an appeal of the decision must be filed by mid-November.
The CWB also plans to file an appeal of the Department of Commerce (DOC) final anti-dumping ruling, which placed the tariffs on Canadian wheat imports in the first place. As well, the Canadian government plans to appeal the DOC ruling on countervailing duties.
Ritter said he was pleased by the ITC's unanimous decision on durum. "This is very much in keeping with the overwhelming evidence of our fair trading practices which the ITC heard from our American customers."
U.S. millers and pasta makers buy an average of $150 million worth of Canadian durum and $250 million worth of spring wheat every year. They testified they pay a premium for Canadian wheat because of its high quality and consistency. "The American market is an important one for western Canadian farmers and we look forward to continuing to serve the needs of our customers throughout the United States," Ritter said.
Spring wheat is milled into flour for baking goods. Durum wheat is milled into semolina and used to make pasta and couscous.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Rhéal Cenerini
Communications consultant
Winnipeg, MB
tel: (204) 983-4497
