Strong Competition for European Feed Peas

VANCOUVER - May 19/06 - SNS -- The competitive situation in Spain's and the rest of Europe's feed pea industry will remain unchanged in the coming season following a decision by the European Union to withdraw a 14% punitive import duty of a wide range of U.S. origin products effected May 16.

The duties, which would have also been imposed on pulses, were authorized by the World Trade Organization ruling against the so-called Byrd amendment, which conferred special tax benefits on foreign corporations. Last week, the U.S. congress repealed the tax benefits as part of wider tax legislation.

If the duties had come into effect, they would have made it near to impossible for feed pea and lentil exporters in the United States to compete with offers from Canadian shippers.

The move may also have affected the profitability of Canadian companies which own pulse processing plants in the United States. The impact would have been less pronounced on higher valued commodities such as dry edible beans and kabuli chickpeas.

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