HomeMy WebLinkAboutTimes Advocate, 1989-08-23, Page 19Times -Advocate, August 23, 1989
Page 19
Welcome to Barbecue - More than 1,000 persons attended last week's annual Huron Provincial Lib-
eral barbecue at the farm of MPP Jack Riddell. Above, Riddell greets Hedy Devine, Bill Metcalfe and
Uwe Wisch.
One fooi.
It ain't over till the fat lady sings,
of course, but Canadian farmers
need only look to the countervail-
ingduty slapped on pork going. to
the United States to figure out that
free trade negotiations will not be
simple.
Canadian pork exports to the Ex-
cited States, because pork is subsi-
dized here; is subject to a duty of
3.6 cents a pound -- eight cents a
kilogram. The 3.6 cents was im-
posed last month, a continuation of
the duty imposed May 3.
Let me explain: the U.S. Depart-
ment of Commerce figures pork
producers get a subsidy through sta-
bilization payments. This gives Ca-
nadian farmers an advantage over
American -farmers. Therefore, a
countervailing duty is imposed:
All is fair in love and trade wars,
apparently.
Canadian meat packers were hop-
ing the duty would be lifted. In-
stead, the Americans increased it
from 3.5 cents a pound to 3.6 cents
a pound. Between a quarter and a
third of pork marketed by Canadian
companies goes to the U.S. The
shipments last year were valued at
close to $341 million. That is a
great deal of money to Canadian
packers and farmers. It is not much
more, tt u•a drop in the bucket to
American packers and fanners. That
is close to 3,500 tonnes of unpro-
cessed fresh, chilled or frozen'pork a
Week, quite .a hunk for Canadian
farmers but about one percent of the
American market.
It was a surprise last May when
they duty was first imposed, a sur-
prise to the meat packers and, of
course, to farmers. It was an even
more unpleasant surprise when it
was increased in July.
So critical are these exports
across the border that any more in-
creases in this countervailing duty
could cause bankruptcy, of many
packing plants in Canada, especial-
ly in Ontario. It could even lead to
the demise of the meat packing in-
dustry here.
Larry Martin, a University of
Guelph professor, has been deliver-
ing economic analyses to lawyers
working for the Canadian Meat
Council. A Canadian appeal to the
International Trade Commission
has been filed. The ITC has 45 days
to determine whether the imports of
Canadian pork cause damage to the
U.S. industry. That ITC report on
injury to U.S. trade is due Septem-
ber 5.
Those findings are important to
the Canadian meat packing indus-
try and to farmers. If the duty is
maintained as is, the Canadian in-
dustry could compete because only
top quality meat is involved. If the
duty isiucIea ..J, we could sec
hogs being shipped across the bor-
der to be slaughtered and processed
and then shipped back across to
Canada as pork.
for NM,
says Prof. Martin: !lc thinks that a
subsidy as small as 3.6 ccnts a
Graduation - Congratulations!
Lewis and Marlene Gingerich are
pleased to announce the gradu-
ation of Dorcas from the Diplo-
ma Nursing Program, Fanshawe
College. She is employed with
the Medical Personnel Pool, To-
ronto, Ontario.
!ithe furrow
"We're eternal optimists. We
pound -- the amount of the coun-
tervailing duty -- could not possi-
:ly be causing injury of any mag-
.titude to the American meat
packing industry.
I hope Larry is right. He usually
is.
Murray Stewart of Canada Pack-
.!.rs is of the same opinion.
trust that common sense will pre-
vail," says Stewart.
Both of these gentlemen arc
much more conversant with the in-
dustry than I am and I hope they
are right. But I always have a both-
ersome little doubt about the
Yanks and their protectionism.
They are usually more arrogant
than humble.
WERE RIGHT HERE FOR YOU
WE'RE RIGHT HERE FOR YOU
Busy barbecue - Some of the
more than 1,000 persons at the
Wednesday's Huron Provincial
Liberal picnic are shown above
lining up for food. At the left
Bill Weber is in charge of the
corn -on -the -cob kettle. The bar-
becue was held at the farm of
Huron MPP Jack Riddell.
It's your licence to thrills. Just look for our
low summer prices in the windshields of thousands
of new cars and trucks in stock.
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EXPIRES AUGUST 31s? -
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