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NFU: Canadian Cattle Subsidies Unfair to U.S. Producers
WASHINGTON (July 26, 2005) – National Farmers Union is urging the U.S. Department of Agriculture to take immediate action to ensure that subsidized Canadian cattle production does not compete with the U.S. beef industry.
In response to U.S policy to protect the domestic cattle herd from bovine spongiform encephalopathy (BSE), the Canadian government instituted $200 per head subsidy payments to Canadian cattle producers. Now that the border has been re-opened to Canadian cattle and beef imports, these payments constitute an unfair subsidy of Canadian exports to our country.
"U.S. cattle producers have experienced a drop in prices since the reopening of the border," NFU President Dave Frederickson said. "We need to ensure we are not giving foreign producers a competitive advantage over U.S. producers."
Although this program has been suspended, subsidized cattle are coming into the United States and are in direct competition with domestic cattle. NFU has asked USDA to take the following action:
Request Canada to immediately suspend shipping subsidized Canadian cattle to the United States.
Investigate the Canadian subsidy to see if it violates the WTO or NAFTA trade agreements .
If the Canadian government resists ending subsidization of their cattle industry, initiate a countervailing duty investigation and immediately establish import tariffs to protect the economic interests of U.S. cattle producers.
WASHINGTON (July 26, 2005) – National Farmers Union is urging the U.S. Department of Agriculture to take immediate action to ensure that subsidized Canadian cattle production does not compete with the U.S. beef industry.
In response to U.S policy to protect the domestic cattle herd from bovine spongiform encephalopathy (BSE), the Canadian government instituted $200 per head subsidy payments to Canadian cattle producers. Now that the border has been re-opened to Canadian cattle and beef imports, these payments constitute an unfair subsidy of Canadian exports to our country.
"U.S. cattle producers have experienced a drop in prices since the reopening of the border," NFU President Dave Frederickson said. "We need to ensure we are not giving foreign producers a competitive advantage over U.S. producers."
Although this program has been suspended, subsidized cattle are coming into the United States and are in direct competition with domestic cattle. NFU has asked USDA to take the following action:
Request Canada to immediately suspend shipping subsidized Canadian cattle to the United States.
Investigate the Canadian subsidy to see if it violates the WTO or NAFTA trade agreements .
If the Canadian government resists ending subsidization of their cattle industry, initiate a countervailing duty investigation and immediately establish import tariffs to protect the economic interests of U.S. cattle producers.