Washington - The U.S. Commerce Department confirmed it will investigate cattle imports from Canada and Mexico for alleged unfair trade practices and outlined its schedule for proceeding.
The Ranchers-Cattlemen Action Legal Foundation, the grass roots group which asked for the investigations, has estimated that underpriced cattle from both countries cause $1 billion to $2 billion annually in damage to U.S. cattle producers.
An attorney for R-CALF told Reuters late Tuesday that Commerce had accepted the group's three separate petitions, which were first filed on Oct 1.
In a fact sheet, Commerce put the number of live cattle imports in 1997 at 1.35 million from Canada and 667,862 from Mexico. R-CALF alleges that Mexico and Canada are “dumping” cattle in the U.S. market at unfair prices.
R-CALF also alleges that Canadian producers benefit from federal and provincial subsidies that enable them to offer their cattle at discount prices in the United States.
The new investigations, which could force Mexico and Canada to sell their cattle at a higher price in the U.S. market or pay a differential duty to the U.S. government, come as the United States and Canada have been trying to soothe frazzled farm trade nerves along the border.
The probes also follows Mexico's decision earlier this fall to launch its own investigation into charges by Mexican producers of unfairly priced beef, pork and live cattle imports from the United States.
U.S. hog producers have also mulled asking the U.S. government to curb imports of Canadian hogs.
The next step in the R-CALF cases is for the U.S. International Trade Commission to make a preliminary decision by January 18 on whether the U.S. cattle industry has been injured by the imports, Commerce said.
If that hurdle is cleared, the countervailing duty investigations begin running on separate time tracks.
Commerce's deadline for making a preliminary determination of whether there are Canadian subsidies that warrant countervailing duties is February 25. It has until May 11 to make a preliminary determination in the anti-dumping cases.
Commerce then has until May 11 in the countervailing duty case and until July 26 in the anti-dumping cases to make a final determination if unfair trade practices have occurred.
If any the cases are still alive at that point, they go back to the ITC for a final injury determination.
If the ITC again determines injury has occurred, that then clears the way for Commerce to impose duties.
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