Hard Red Spring Wheat, But Not Durum Wheat, From Canada Injures US Industry, Says ITC

(October 16, 2003 - FFJ)    The United States International Trade Commission (ITC) today determined that a U.S. industry is materially injured by reason of imports of hard red spring wheat from Canada that the U.S. Department of Commerce has determined are subsidized and sold in the United States at less than fair value. The Commission made negative determinations with respect to imports of durum wheat from Canada.

With respect to imports of hard red spring wheat, Vice Chairman Jennifer A. Hillman and Commissioner Marcia E. Miller voted in the affirmative and Chairman Deanna Tanner Okun and Commissioner Stephen Koplan voted in the negative. With respect to durum wheat, all four Commissioners voted in the negative. Commissioner Charlotte R. Lane did not participate in these investigations.

As a result of the Commission's affirmative determinations, the U.S. Department of Commerce will issue countervailing duty and antidumping duty orders on imports of hard red spring wheat from Canada. As a result of the Commission's negative determinations, no countervailing duty or antidumping duty orders will be issued on imports of durum wheat from Canada.

The Commission's public report Durum and Hard Red Spring Wheat from Canada (Investigation Nos. 701-TA-430A and 430B and 731-TA-1019A and 1019B (Final), USITC Publication 3639, October 2003) will contain the views of the Commission and information developed during the investigations.

Copies may be obtained after November 4, 2003, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202- 205-2104.

UNITED STATES INTERNATIONAL TRADE COMMISSION
Office of Industries
Washington, DC 20436

FACTUAL HIGHLIGHTS

Durum and Hard Red Spring Wheat from Canada
Investigations Nos. 701-TA-430A and 430B and 731-TA-1019A and 1019B (Final)

Product Description: The imported products covered by these investigations are durum wheat and hard red spring wheat, provided for in subheadings 1001.10.00, 1001.90.10, and 1001.90.20 of the Harmonized Tariff Schedule of the United States (HTS). Durum wheat is mainly used to make pasta products, such as spaghetti, while hard red spring wheat is used primarily to make flour for bread and baked goods, like bagels and pizza crust.

Status of Proceedings:

1. Types of investigations:  Final antidumping and countervailing duty.
2. Petitioners:  The North Dakota Wheat Commission (hard red spring wheat), Bismarck, ND; United States Durum Growers Association (durum wheat), Bismarck, ND; and the Durum Growers Trade Action Committee (durum wheat), Bismarck, ND.
3. Investigations instituted by USITC:  September 13, 2002.
4. Hearing:  September 4, 2003.
5. USITC vote:  October 3, 2003.
6. USITC notification of Department of Commerce:  not later than October 16, 2003.

U.S. Industry:

1. Number of U.S. producers in 1997:  46,268 spring wheat farms and 6,887 durum wheat farms.
2. Location of producers' farms:  North Dakota, Montana, Minnesota, South Dakota, Idaho, Arizona, and California accounted for 100 percent of U.S. production of durum and 93 percent of spring wheat in 1997.
3. Employment of production and related workers:  Not available.
4. Apparent U.S. consumption (not including exports) in marketing year 2002/03:  61 million bushels of durum wheat and 182 million bushels of hard red spring wheat.
5. U.S. apparent consumption (including exports) in marketing year 2002/03:  98 million bushels of durum wheat and 436 million bushels of hard red spring wheat. 
6. Ratio of quantity of total imports to U.S. apparent consumption (not including exports) in 2002/03:  Canada, 20.8 percent of durum wheat and 5.8 percent of hard red spring wheat.  
7. Ratio of quantity of total imports to U.S. apparent consumption (including exports) in 2002/03:  Canada, 12.8 percent of durum wheat and 2.4 percent of hard red spring wheat.

U.S. Imports:

1. Quantity of subject imports from Canada in marketing year 2002/03:  13 million bushels of durum wheat and 11 million bushels of hard red spring wheat.