Canadian Sugar Institute Supports Tribunal Decision to Continue Duties on Unfairly Traded Sugar

Toronto - On September 28, 2012 the Canadian International Trade Tribunal issued an order continuing its November 5, 2005, order in respect of the dumping of refined sugar originating in or exported from Denmark, the Federal Republic of Germany, the Netherlands and the United Kingdom, and the subsidizing of refined sugar originating in or exported from the European Union.

This order reinstates antidumping and countervailing duties on imports of EU sugar. It arises from the Tribunal's reconsideration of an earlier order that terminated the duties. The Tribunal re-examination of evidence was made necessary because of a Federal Court of Appeal direction on May 30, 2012.

“The Canadian Sugar Institute welcomes this decision which recognizes that Canadian sugar producers are vulnerable as long as the distortions created by the EU sugar program continue,” stated Sandra Marsden, President of the Canadian Sugar Institute.

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

“Canada’s open sugar market represents an attractive destination for surplus sugar and continuation of these duties is essential to restrict unfair competition,” stated Ms. Marsden.

The Tribunal’s decision will help sustain a value-added Canadian industry that continues to provide Canadian consumers and food manufacturers with a reliable and low cost supply of refined sugar.

The Tribunal Order and Statement of Reasons can be read here:
REFINED SUGAR Expiry Review Order and Reasons September 28, 2012

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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.