Canadian Trade Tribunal Continues Duties on Unfairly Traded US and EU Sugar
Toronto – On August 6, 2021, the Canadian International Trade Tribunal (CITT) issued its decision to continue its orders against dumped sugar from the United States (US), Denmark, Germany, Netherlands, and the United Kingdom (UK) and subsidized sugar from the European Union (EU). Anti-dumping and countervailing duties will therefore continue to be applied to such imports to prevent them from entering the Canadian market at unfair prices that would cause injury to the Canadian industry.
The Tribunal’s injury inquiry followed the conclusion of an investigation by the Canada Border Services Agency (CBSA). On March 1, 2021, the CBSA determined that the removal of the duties would likely result in the resumption or continuation of dumping and/or subsidizing of US, EU and UK sugar into Canada. The CBSA’s determinations recognized the trade-distorting effects of the sugar programs in these countries, which provide government support to local producers while restricting imports into their home markets, promoting excess sugar production that is exported at very low prices.
“The CSI is pleased that the Tribunal recognized that Canadian sugar producers are vulnerable to the trade distortions caused by the US, EU, and UK sugar regimes,” stated Sandra Marsden, President of the CSI. “
Canada is one of the few developed country markets in the world that does not subsidize and protect its domestic sugar producers. In contrast, the US, EU, and UK sugar programs maintain high customs tariffs and restrictive import quotas to protect their domestic producers from world market volatility. These measures stimulate local production, and the resulting over-supply is exported at prices substantially below their internal market prices. At the same time, these measures block Canadian refined sugar from entering their markets. This inequitable trade situation has not been addressed through Canada’s trade agreements with the US, EU or UK.
“Thus far, global and regional trade negotiations have not resulted in a meaningful change to the one-way trade situation with the US, EU or UK” stated Ms. Marsden. “As long as these sugar trade distortions continue, Canada’s open market represents an attractive destination for surplus sugar produced in these countries, and Canadian sugar producers are vulnerable.”
The Tribunal will issue the statement of reasons within 15 days.
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.