Canadian sugar production in 1996/97 is forecast at 140,000 tons, down 11,000 tons from the previous year. The drop is due mainly to reduced sugarbeet yields and a smaller planted area. High grain prices this past year caused farmers to increase areaplanted to grains at the expense of oilseeds and other specialty crops, including sugar beets. Canada's sugar imports in 1996/97 are forecast at 1.13 millions tons, up 16 percent from the previous forecast and slightly up from previous year's imports. Despite growth in total imports, imports of refined sugar dropped to 96,000 tons from the previous year. This is the result of the imposition of antidumping duties on U.S. sugar and countervailing and antidumping duties on European Union sugar on November6, 1995. The Canadian International Trade Tribunal (CITT) on April 4 found no imminent threat that refined sugar prices would rise to levels found in the United States, and concluded therefore that there was no need to reduce or eliminate the duties imposed. In January of 1996, Canada implemented modifications to its inward processing program. The provisions of the Customs Tariff and Customs Act relieve the payment of customs duties on imported inputs used in the production in Canada of goods that are subsequently exported. Limited quantities of U.S. sugar are imported into Canada under this Act.
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