Important notes for growers on

Following is a short list of point form notes obtained
through the federal government on dumping and actions that are taken.
Growers must be aware of the potential risk being taken by selling below
“normal value” as defined in the Act. The risk is that a tariff could be
lodged against the whole country by the US. Canada tends to take
anti-dumping action by targeting the individual grower or region.
In BC recently, the BC Tomato Marketing Board was slapped with a 57% tariff
following their being found to be dumping. You will remember the softwood
lumber issue.







ANTI-DUMPING

DOMESTIC PR0BLEM



  • Canada Customs and Revenue Agency defines dumping as “selling at less than
    NORMAL VALUE”. Normal Value is what we sell for here in Canada or less than
    a profit.
  • However, it is not illegal to sell at less than normal value if it is not
    injurious to the industry in the other country
  • Anti-dumping is to protect Canada or other countries against a foreign
    effort to dump by an organization, group, province or country.
  • Section 19/20 of the Act describes the dispute action
  • If Canadian Growers shipped into the United States below “normal values”,
    the US could register a complaint with the US Department of Commerce and
    there could be a tariff placed against the industry here (this just happened
    to the BC Tomato Marketing Group and they were hit with a 57% tariff based
    on the “profit” they madeAction can be taken if we have 3% or more of the
    total exported market to the entire US from any other countries worldwide
  • Legislation does not allow the Federal or provincial governments to take
    action against any Canadian company for dumping into a foreign market ­ this
    is free enterprise. It will act only on a complaint from the foreign
    country and only after reviewing the data.
  • If a complaint is issued by the US, it usually does it against the whole
    country, unlike Canada that can go after just the region/state or market
    area.
  • If this happens, then it is up to the rest of the industry to prove
    compliance of their own at their own costs.
  • In some cases, the US has targeted the specific shipper/grower and not
    included the entire industry.
  • There is no system in place whereby an industry can act against a specific
    exporter in order to protect itself, in either country.
  • However, if a specific grower or group is “dumping” and could injure the
    whole country due to US action, then it may be prudent to approach the
    grower/group and express the potential problem. Many are not aware of what
    the results of their actions can be.


A number of Federal Departments were contacted for this information.


Chris Andrews

Executive Director

CNLA

October 22, 2001


SHARE