Live hog imports from Canada are not hurting the domestic swine market, according to a recent ruling by the U.S. International Trade Commission.

The commission ruled Wednesday after the National Pork Producers Council and other groups said the Canadian government was illegally subsidizing hog producers and that the subsidies gave Canadian hog producers an unfair advantage when they came to the United States, said Roger McEowen, associate professor of agricultural law.

Hog imports from Canada make up about 3 percent to 4 percent of the market, he said.

“What they are ruling is that the Canadian government subsidies are not allowing Canadian hog producers to dump hogs on the U.S.,” McEowen said.

Dermot Hayes, professor of economics, testified at the trial.

He said the case against Canadian hog imports was hurt because the U.S. industry is making money right now.

“It’s hard for them to look at an industry that’s making money and say they need protection,” Hayes said.

He said both the United States and Canada have programs to subsidize hog production, but Canada’s programs are more beneficial to the farmers because they guarantee a profit.

“You can grow the hogs knowing you are going to make money,” he said.

Hayes said the Canadian government will subsidize producers $4 to $6 per hog.

McEowen said he thinks hog prices will have a slight drop, but the impact will not be that significant.

Canadian hogs will be able to be imported duty-free as a result of this decision, McEowen said.

“The greatest impact of this will be felt by the smaller operations,” he said.

Meatpackers are in favor of importing hogs from Canada, McEowen said.

Slaughterhouses in the United States cannot fill the space they have available, which leaves them with excess capacity, so they have to import hogs from Canada, he said.

“It’s cheaper for the packer to get its hogs from Canada,” McEowen said.

Steve Kerns, president of the Iowa Pork Producers Association, said he was disappointed the commission ruled against the group.

He said the Department of Commerce had previously claimed that Canadian producers were dumping hogs into the United States. Kerns said Canadian farmers’ ability to sell their hogs at a lower price because they are subsidized has hurt Iowa’s hog industry.

“It has forced producers out of business,” he said.

“The Canadians need to get rid of their subsidies to level the playing field.”

Iowa farmers are unable to compete with the low prices at which Canadians are able to sell.

Hayes said he is also concerned about the sow market.

“Iowa will become more and more a feeding ground,” he said.

Kerns said the Iowa Pork Producers Association cannot comment on what it plans to do next, although plans will be discussed at a board meeting Wednesday.

The case highlights the World Trade Organization’s ruling that the Byrd Amendment violates the organization’s rules, McEowen said.

In 2000, the Byrd Amendment specified anti-dumping and anti-subsidy duties, which are collected from imports, would go to specific groups rather than to the U.S. Treasury, McEowen said.

He said the World Trade Organization recently ruled against the Byrd Amendment because it gave inappropriate incentives to file trade cases.

Even though the National Pork Producers Council said it didn’t file its case because of the Byrd Amendment, it does show how a group can benefit from it, McEowen said.

“I don’t think we will see this Byrd Amendment around [much longer],” he said.

Congress will have to look at the issue and whether it needs to eliminate it.

There is a growing list of people opposed to the Byrd Amendment, and the pork council could join that list, McEowen said.