The Canadian Border Services Agency accepted a petition from Canadian corn growers requesting anti-dumping (AD) and countervailing duties (CVD) on U.S. corn this week.
While no duties will be immediately imposed, the Canadian government will begin CVD and/or AD investigations, which will take several months to complete. This action could lead to duties in the near future that would affect approximately 100 million bushels of U.S. corn exports to Canada and have a seriously detrimental impact on the Canadian livestock and corn processing industries.
The Canadian Pork Council (CPC) has estimated that if a potential tariff on American imports adds almost $1 a bushel to the price of corn, it would take up to $10 per animal off the bottom line of the country’s hog producers. The increase in the cost of corn would also drive up barley prices in Western Canada, hurting hog growers in that part of the country as well, according to CPC.
According to a statement from the U.S. Grains Council, the Council, the National Corn Growers Association and the Corn Refiners Association intend to continue working with the U.S. government to argue against the imposition of any duties.