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November 5, 2005 - International Trade News

Canadian Trade Tribunal Continues Duties on EU and US Sugar

Toronto - On November 2, 2005, 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 CITT finding concludes the second review of the Tribunal’s initial 1995 finding that protects Canadian sugar producers from harm threatened by imports of unfairly priced US and EU refined sugar. 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 failed to address these protectionist sugar regimes. Until these distortions are eliminated, Canada’s open sugar market represents an attractive destination for surplus sugar produced in these countries.”

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 keep internal sugar prices at two to three times the world price. This stimulates production and the resulting over-supply must then been exported at artificially low prices. Without recourse from antidumping and countervailing duties, Canada’s open and developed market is an obvious destination for this unfairly priced surplus sugar.

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 issued its statement of reasons on November 17th, 2005.

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