The National Cattlemen's Beef Association supports a decision by the Commerce Department to continue an investigation into whether potential Canadian subsidies to cattle producers justify a countervailing duty.  NCBA also "applauds" recent efforts by the U.S. and Canadian governments to make price and volume data on Canadian cattle more available to U.S. cattle producers.

Commerce Tuesday released a preliminary ruling that potential subsidies to Canadian cattle producers could be offset by a countervailing tariff of .38% on live cattle imports.  However, since the preliminary subsidy rate is less than 1%, Commerce considers that to be a negative ruling, and no duties will be collected for the present time.  Commerce will continue its investigation and is expected to make a final ruling in September.

"We support a thorough investigation to address concerns about government intervention in Canadian agriculture," NCBA said in a statement attributed to Dana Hauck, Delphos, KS, chair of the NCBA International Markets Committee.  "The pricing policies of the Canadian Wheat Board at times have presented a situation where grain can be cheaper for cattle producers in Canada than for cattle producers in the United States."

Making price and volume data on Canadian cattle more accessible to U.S. cattle producers is consistent with an agreement reached last fall during a Canadian trade summit hosted by NCBA, the statement said.

REUTERS reported from Chicago that Canada's Agriculture and Agri-Food Minister Lyle Vanclief saying cattle trade between the United States and Canada was fair.  He said he was confident the Commerce ruling would substantiate that.

Canada's Agriculture and Trade Departments claimed victory with the preliminary ruling.  A REUTERS report from Ottawa quoted the departments saying the government and the beef cattle industry "will continue to vigorously defend Canadian interests until there is a final decision on the countervail issue late this year."