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| Farmers Dump on Canada for Dumping | |||||||||||||||||||||||||
| Subject | Comparative Statics | ||||||||||||||||||||||||
| Topic | Perfect Competition | ||||||||||||||||||||||||
| Key Words | Imports, Tariffs, Dumping, Demand, Revenue | ||||||||||||||||||||||||
| News Story |
Farmers and ranchers have blockaded Canadian border crossings. Also officials in North and South Dakota are pulling Canadian trucks over and are subjecting them to tougher inspections. The reason is that U.S. farmers are alarmed at the growth in imports since tariffs were removed in 1995. They claim that Canadian farmers are dumping grain at prices below cost. Not all agree. Some say that the Canadian grain was purchased because it was free of disease, unlike American grain in recent years. Adding to the pressure on grain prices have been bumper crops in areas such as the Northwest. Overseas demand has also decreased due to the Asian currency crisis. One study claims that barley and durum farmers in the upper Midwest had lost nearly $270 million in revenue due to dumping practices by the Canadians. One farmer pointed out that small towns were drying up because farmers had little money. (Updated November 11, 1998) |
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| Source | Associated Press, "Midwest Farmers Running Out of Options in Protest on Imports", The New York Times, September 23, 1998. | ||||||||||||||||||||||||
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