Canadian Trade Tribunal Continues Duties on EU and US Sugar

Toronto - On October 30, 2015, the Canadian International Trade Tribunal (CITT) issued its decision to continue its 1995 finding against dumped and subsidized sugar from the United States and European Union.  Antidumping and countervailing duties will, therefore, continue to be applied to imports of such sugar.

The Tribunal concluded that, if its finding was revoked, there would be a resumption of dumped and subsidized imports of US and EU sugar into Canada and those imports would likely result in material injury to the Canadian sugar industry.  The CITT finding concludes the fourth review of the Tribunal’s initial 1995 finding - under Canadian law, a review of these findings must take place every five years.

“The Tribunal’s decision recognizes that Canadian sugar producers are vulnerable as long as the distortions created by the US and EU sugar programs continue,” stated Sandra Marsden, President of the Canadian Sugar Institute.  “Thus far, global and regional trade negotiations have not resulted in a meaningful change to the one-way trade situation with the US and EU.  Until these distortions are eliminated, Canada’s open sugar market represents an attractive destination for surplus sugar and continuation of these duties is essential to restrict unfair competition.”

Canada is one of the few developed country markets in the world that does not subsidize and protect its sugar producers.  In contrast, the US and EU sugar programs maintain high internal prices and restrictive import quotas to protect producers from world market volatility.  This stimulates local production and the resulting over-supply must be exported at prices substantially below their internal market prices.

The Tribunal’s decision will help sustain a value-added Canadian industry that operates under world market conditions and continues to provide Canadian consumers and food manufacturers with a reliable supply of competitively priced refined sugar.

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The Canadian Sugar Institute (CSI) is the national non-profit association of Canadian producers of refined sugar.  The CSI's key objectives include improving access to export markets, seeking redress from unfair trade practices and encouraging government policy to enhance the industry's cost competitiveness.