Canada Places Duty on U.S. Grain Corn

Canada imposed a $1.58-per-bushel duty on imports of U.S. grain corn destined for provinces west of Ontario, the Canada Customs and Revenue Agency said. The agency said a preliminary investigation showed that U.S. grain corn, used primarily for livestock feed, was sold in Canada at prices that were an average $1.01 per bushel “below profitable levels.” The agency said the corn was subsidized by an average of 57 cents per bushel. The U.S. expressed disappointment that Canada did not grant a requested extension before making the temporary ruling. The extension would have allowed the Clinton administration to gather more data from its corn industry to use in its defense. The agency’s ruling must be confirmed by the International Trade Tribunal and Canadian Customs. Both agencies are expected to make final determinations early next year. Corn is the United States’ largest and most valuable crop, with annual production of around $18 billion. U.S. coarse grain shipments to Canada, which are about 95% corn, totaled $86 million in the year ended Sept. 30, 1999, down from $156 million the previous year.