The Rural Voice, 1988-11, Page 40COMFORT CASTRATOR AND CASTRETTES NEWS
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38 THE RURAL VOICE
PORK COUNTERVAIL
A COMPLEX ISSUE
Ata seminar held at the University of
Guelph recently, the U.S. lawyer who
represented the Canadian Pork Council
at countervail hearings in the U.S. ex-
plained some of the legal issues behind
the bilateral trade controversy in the
pork industry.
In 1984, notes W. K. Ince, the Na-
tional Pork Producers Council (NPPC),
an organization of U.S. hog producers,
filed a complaint to government against
what they called unfair trading practices
by Canada.
As a result, countervail duties were
imposed on imports of live hogs from
Canada. Among the subsidies deemed
injurious to U.S. producers was income
stabilization. The countervail was fol-
lowed by an appeal from the Canadian
Pork Council (CPC).
The International Trade Commis-
sion (ITC) which dealt with the issue is
a court of law. As such, Ince explained,
it is not concerned with determining
what is "just" but with interpreting the
law as it is written. The court gets only
those facts that are presented by lawyers
on both sides of the issue.
The ITC concluded that pork and
swine are two different commodities
and that countervail on hogs, but not on
pork, is within the law. The only way the
NPPC could get pork products included
was to have the law changed. This they
managed to do, Ince said, and at present
the law includes pork and hogs as a
"like" commodity.
Now, Ince said, "there are indica-
tions that the NPPC is preparing to file
another countervail petition against
Canadian pork, making use of the new
provision."
One fact brought out by Ince was that
this new provision goes against the
General Agreement on Tariffs and
Trade (GATT). Congress knew this
when it changed the law, he said, but
expects to be let off the hook during the
current GATT negotiations.
Countervailing duties are designed
to guard against export subsidies. But
Canadian subsidies, Ince said, are do-
mestic subsidies, and so are not consid-
ered by GATT to have an adverse effect
on trade. (cont'd)