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NEWS RELEASE 02-107; November 19, 2002 November 19, 2002
News Release 02-107
Invs. Nos. 701-TA-430 and 731-TA-1019 (P)

ITC VOTES TO CONTINUE CASES ON DURUM AND HARD RED SPRING WHEAT FROM CANADA

The United States International Trade Commission (ITC) today determined that there is a reasonable indication that U.S. industries are materially injured by reason of imports of durum wheat and of hard red spring wheat from Canada that are allegedly subsidized and sold in the United States at less than fair value.

The Commission found two like products in these investigations -- durum wheat and hard red spring wheat. Chairman Deanna Tanner Okun, Vice Chairman Jennifer A. Hillman, and Commissioners Lynn M. Bragg and Marcia E. Miller voted in the affirmative with respect to each product. Commissioner Stephen Koplan voted in the negative with respect to each product.

As a result of the Commission's affirmative determinations, the U.S. Department of Commerce will continue to conduct its countervailing duty and antidumping investigations of imports of these products from Canada, with its preliminary countervailing duty determination due on or about December 27, 2002, and its preliminary antidumping determination due on or about March 12, 2003.

The Commission's public report Durum and Hard Red Spring Wheat from Canada (Investigations Nos. 701-TA-430 and 731-TA-1019 (Preliminary), USITC Publication 3563, November 2002) will contain the views of the Commission and information developed during the investigations.

Copies of the report are expected to be available after December 24, 2002, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed 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-430 and 731-TA-1019 (Preliminary)

Product Description: The imported products subject to these investigations are durum 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. Durum wheat is mainly used to make pasta products, while hard red spring wheat is used primarily to make flour for bread and baked goods.

Status of Proceedings:

1. Types of investigations: Preliminary antidumping and countervailing duty.
2. Petitioners: The North Dakota Wheat Commission, Bismarck, ND; the Durum Growers 
     Trade Action Committee, Bismarck, ND; and the U.S. Durum Growers Association,
     Bismarck, ND.
3. Preliminary investigations instituted by the USITC: September 13, 2002.
4. Commission's conference: October 4, 2002.
5. USITC vote: November 19, 2002.
6. USITC determinations to the U.S. Department of Commerce: November 25, 2002.


U.S. Industry:

1. Number of producers in 1997: 46,268 spring wheat producers, and 6,887 durum wheat producers.
2. Location of producers' farms: North Dakota, Montana, Minnesota, South Dakota, Idaho, and
     California together account for 90 percent of durum and 93 percent of spring wheat.
3. Employment of farm and related workers in 1997: unavailable.
4. Apparent U.S. consumption in 2001/02: 94 million bushels of durum wheat and 329 million
     bushels of hard red spring wheat.
5. Ratio of the quantity of total U.S. imports to total U.S. consumption in 2001/02: 
     21.5% for durum wheat, and 16.3% for hard red spring wheat.


U.S. Imports:

1. From Canada during 2001/02: $86 million of durum wheat, and $210 million of hard red spring
     wheat.
2. From other countries during 2001/02: $4 million of durum and $0.3 million of hard red spring
     wheat.
3. Leading sources during 2001/02: Canada and Mexico for durum wheat; Canada and Germany for
     hard red spring wheat.

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