October 12, 2000

U.S. Trade Representative Charlene Barshefsky and Agriculture Secretary Dan Glickman say they are disappointed that the Canadian government has made a preliminary decision that U.S. corn exports are injuring Canadian corn producers. "The Canadian government's finding that U.S. corn shipments have depressed Canadian corn prices is completely unsupported by the facts," Barshefsky said.

"I'm disappointed in the Canadian decision, as corn prices have declined all around the world and have hit both U.S. and Canadian farmers hard," Secretary Glickman said.

The Canadian International Trade Tribunal issued a preliminary finding Tuesday that U.S. corn exports are harming Canadian corn producers, despite the fact that corn production in Manitoba has nearly doubled since 1996, and U.S. corn shipments to Canada declined in 1999 by about $33 million.

"Given these numbers, we see no connection between U.S. exports and lower returns to Canadian producers," Ambassador Barshefsky said.

The United States said it would request that the Canadian Customs and Revenue Agency postpone its decisions on the countervailing duty and antidumping investigations of this case. The 45-day delay from Nov. 7 would allow full consideration of the information already provided by the U.S. industry, as well as the state and federal governments.

"We will closely review this decision and others in this proceeding in light of Canada's obligations under WTO Agreements, and will continue to vigorously defend our producers in all aspects of these cases," Glickman said.

Barshefsky arrived this morning in Beijing where she will discuss China's accession to the World Trade Organization with Premier Zhu Rongji and other Chinese leaders.

President Clinton earlier this week signed into law legislation that grants China permanent normal trade relations status.

KYODO NEWS SERVICE reports that Barshefsky is expected to urge Zhu to implement bilateral trade agreements at an early date, including cutting tariffs on industrial products and liberalizing import controls on agricultural goods.

In return for permanent U.S. trade benefits, China has promised to open up markets ranging from autos, telecommunications and textiles to agriculture under the terms of a landmark accord the United States hopes will bring China into the WTO.