| MONTREAL, QUEBEC--Rogers Sugar Income Fund announced that
the Canadian International Trade Tribunal issued a decision on November 3,
2000 that continues its 1995 finding against dumped and subsidized sugar
from the United States and European Union. Antidumping and countervailing
duties will, therefore, continue to be applied to imports of such sugar.
The Tribunal concluded that, if its finding was revoked, there would be
a resumption of dumped and subsidized imports of US and EU sugar into
Canada and that those imports would materially injure the Canadian sugar
refiners.
Canadian prices are substantially below prices in markets such as the
US and EU where government intervention supports prices at artificially
high levels. High price policies in those markets stimulate domestic
production and create surpluses for export. Currently, the surpluses in
the US and EU are at record levels, posing a sizeable threat to the small,
open Canadian market.
A long history of political intervention and government support in
these countries has built up to favour their protectionist sugar policies,
escaping reform in recent trade agreements. Until these distortions are
eliminated, the Canadian industry has no hope of avoiding material injury
from these imports.
In the absence of the antidumping and countervailing duties, Canada is
one of the only major developed country markets in the world that is open
to sugar imports. This makes Canada a prime target for excess US and EU
sugar.
Rogers Sugar and the Canadian sugar industry have a very strong
interest in keeping Canadian food manufacturers, who purchase 80 percent
of the industry's production, competitive in the North American market.
Many food and beverage processors are located in Canada to take advantage
of Canada's lower sugar prices and have expanded their production and
exports as a result of that advantage. It is only by sustaining a viable
Canadian sugar industry that we can continue to provide our customers with
a reliable supply of low cost sugar. Canada's sugar prices have always
been based on the world price and that policy will continue to benefit
Canadian food manufacturers and consumers.
The Tribunal's decision will help sustain a value-added industry for
Rogers and it will continue to provide Canadians with a stable, low cost
supply of refined sugar.
Contact:
Rogers Sugar Income Fund
Dan Lafrance
Senior Vice-President of Finance
CFO and Secretary
(514) 940-4350 |