This fall, U.S. sugar manufacturers could see a decrease in sales to Canada because Canadian importers of refined sugar made from sugar cane or sugar beets are likely to pay more than double the duty rate on importations of refined sugar from the U.S.
The Canada Border Services Agency (CBSA) is likely to take this measure to level the playing field for Canada’s sugar manufacturers, which are contending that U.S. exporters sell refined sugar at a lower price in Canada than in the U.S. The agency is currently conducting a re-investigation pertaining to this case and is expected to finish around Sept. 4.
The current sugar anti-dumping duty rate is 78 percent for most U.S. sugar exporters. Livingston Regulatory Affairs experts expect that when the CBSA investigation concludes, the rate of anti-dumping duty for most U.S. sugar exporters will be 180 percent – more than double. The new anti-dumping duty rate will be effective immediately upon the conclusion of the investigation.
This practice, called “dumping” in the international trade industry, can create an unfair advantage for the exporting country that is dumping its product in another country at lower than market price. Dumping can result in reduced prices, lost sales and decreased profits for companies in the country where the dumping is taking place.
Granulated, liquid or powdered refined sugar made from sugar cane or sugar beets would be affected. In addition to the United States, the Canadian government would impose the anti-dumping duty on sugar from Denmark, Germany, the Netherlands and the United Kingdom.