Voluntary Report - public distribution

**Date:** 11/7/2005

**GAIN Report Number:** CA5076

CA5076

**Canada**

**Agricultural Situation**

**This Week in Canadian Agriculture, Issue 37**

**2005**

**Approved by:**

![](media/image1.wmf)Lisa Anderson

U.S. Embassy

**Prepared by:**

George Myles and Christina Patterson

**Report Highlights:**

\* Trade Tribunal Decides Sugar Duties Will Remain \* Tentative Deal
Reached in Lakeside Strike \* Pork Council Criticizes EU Trade Offer \*
CWB Makes Record Sale to Cuba \* Conservative MP Urging Subsidies For
Canadian Corn \* Two Canadian Advisors in Softwood Case Step Away

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Ottawa \[CA1\]

\[CA\]

This Week in Canadian Agriculture is a weekly review of Canadian
agricultural industry developments of interest to the U.S. agricultural
community. The issues summarized in this report cover a wide range of
subject matter obtained from Canadian press reports, government press
releases, and host country agricultural officials and representatives.

*Disclaimer*: Any press report summaries in this report are included to
bring U.S. readership closer to the pulse of Canadian developments in
agriculture. In no way do the views and opinions of these sources
reflect USDA's, the U.S. Embassy's, or any other U.S. Government
agency's point of view or official policy.

**TRADE TRIBUNAL DECIDES SUGAR DUTIES WILL REMAIN:** The Canadian
International Trade Tribunal has renewed anti-dumping duties and
countervailing duties on certain sugar suppliers to Canada. Under the
five-year review clock, it marks the second time that duties have been
renewed on the original 1995 trade case. Refined sugar exports from the
United States, Denmark, Germany, the Netherlands, and the United Kingdom
will continue to face a Canadian anti-dumping duty. In addition, EU
refined sugar exports to Canada will continue to face a countervailing
duty. There are some product exemptions from the duties including
organic sugar and certain sugar cubes.

**TENTATIVE DEAL REACHED IN LAKESIDE STRIKE:** The Tyson Foods-owned
Lakeside cattle plant in Alberta and its striking union, the United Food
and Commercial Workers, have reportedly reached a tentative agreement
that workers will vote on this weekend. Ratification by the workers
would put an end to the strike that began on October 12, 2005. Normal
throughput at the Lakeside plant of about 3,800 head per day has been
sharply reduced during the labor dispute. There were plans to increase
capacity to 4,700 head per day in the near future.

**PORK COUNCIL CRITICIZES EU TRADE OFFER:** The Canadian Pork Council
(CPC) is critical of the new EU proposals on agriculture in the Doha
World Trade Talks. CPC Executive Director Martin Rice said the tariff
rate quotas (TRQ) that were established for European pork were very
small to begin with, about one-tenth of what would have been using the
minimum five percent of domestic consumption guideline. He told
reporters that they have not grown in line with European consumption and
that the EU offer would leave pork TRQ\'s at about the level where they
are now.

**CWB MAKES RECORD SALE TO CUBA**: The Canadian Wheat Board (CWB) has
recently signed an agreement to sell 100,000 metric tons of Canadian
Western Red Spring wheat to Cuba in the 2005/2006 crop year. According
to the CWB, this represents the single largest sale to Cuba since 1997
and the highest level since the 1990/1991 crop year. The agreement is
valued at approximately \$20 million (CDN) (USD \$17 million) and is
three times the most recent five-year average of CWB sales to Cuba
(about 37,000 metric tons). The agreement comes on the heels of a large
shipment to Cuba in the previous crop year. The CWB is pleased with the
agreement and the renewed interested in Canadian HRS by Cuba.

**CONSERVATIVE MP URGING SUBSIDIES FOR CANADIAN CORN**: According to
local news, Conservative Member of Parliament (MP) for Leeds-Grenville
Gord Brown is asking for an emergency debate on corn in the House of
Commons. Mr. Brown is calling for the debate because he is concerned
that corn farmers in his riding are losing money. In addition, there is
the concern that the Casco Cardinal plant could shut down if the
Canadian International Trade Tribunal (CITT) finds injury from U.S. corn
imports, resulting in tariffs on those imports, thereby leading to
higher market prices for corn. Rather than imposing tariffs, Mr. Brown
is calling for subsidies for domestic corn producers, which would allow
local farmers to make money and not force Casco to abandon its plant.
The CITT is expected to rule later this month on the possibility of
injury to Canadian corn producers from U.S. corn imports. *Post
Comments: In 2004 the OECD determined that the subsidy rate on Canadian
corn was 24%, only slightly lower than the U.S. rate of 27% in the same
year. Calling for subsidies could raise a warning flag with Canada's
trading partners, especially the United States.*

**TWO CANADIAN ADVISORS IN SOFTWOOD CASE STEP AWAY**: According to *the
National Post*, Paul Tellier and Gordon Ritchie, two of Ottawa's key
advisors on the softwood lumber file, are stepping down from their
positions, citing lack of progress as the primary reason they leaving.
International Trade Minister Jim Peterson brought in both men as special
advisors on the softwood lumber dispute in March. According to the
Minister, despite stepping away from their advisory roles both men would
be available to work with Canada's trade negotiators should talks aimed
at resolving the dispute resume. Mr. Tellier has indicated that a
negotiated settlement between the two countries is his preferential
outcome and has warned against exacting revenge on the U.S. for failing
to comply with the recent NAFTA ruling. The Canadian government has
recently adopted a more aggressive stance, stating it will not negotiate
a win and has made compliance with NAFTA a priority.

Find FAS on the World Wide Web:

Visit our headquarters' home page at
[http://www.fas.usda.gov](http://www.fas.usda.gov/) for a complete
listing of FAS' worldwide agricultural reporting.

# 

# Recent Reports from FAS/Ottawa: 

  ----------------- ---------------------------------------- -------------
  Report Number     Title of Report                          Date

  CA5075            This Week in Canadian Agriculture, Issue 10/28/2005
                    36                                       

  CA5074            This Week in Canadian Agriculture, Issue 10/21/2005
                    35                                       

  CA5071            This Week in Canadian Agriculture, Issue 10/14/2005
                    34                                       

  CA5070            Frozen Potato Products Annual            10/25/2005

  CA5069            This Week in Canadian Agriculture, Issue 10/7/2005
                    33                                       

  CA5067            This Week in Canadian Agriculture, Issue 9/30/2005
                    32                                       

  CA5066            Fishery Products Annual                  10/14/2005
  ----------------- ---------------------------------------- -------------

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FAS/Ottawa office can be reached via e-mail at: <agottawa@usda.gov>