Rogers Sugar Income Fund

Rogers Sugar Income Fund

November 02, 2005 11:23 ET

Rogers Sugar Income Fund Announces that the Canadian International Trade Tribunal Continues Duties on EU and US Sugar

MONTREAL, QUEBEC--(CCNMatthews - Nov. 2, 2005) - Rogers Sugar Income Fund (the "Fund") (TSX:RSI.UN) announces that the Canadian International Trade Tribunal (CITT) issued its decision to continue 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The Tribunal concluded that, if its finding was revoked, there would be a resumption of dumped and subsidized imports of US and EU sugar into Canada and those imports would likely result in material injury to the Canadian sugar industry.

The CITT finding concludes the second review of the Tribunal's initial 1995 finding that protects Canadian sugar producers from harm threatened by imports of unfairly priced US and EU refined sugar. Under Canadian law, a review of these findings must take place every five years.

"The Tribunal's decision is extremely important to our company and the Canadian sugar industry as a whole," stated Ed Makin, President of Lantic Sugar Limited ("Lantic") and Rogers Sugar Ltd. ("Rogers"). "As long as the US and EU sugar programs continue to distort trade, our market is open to dumped and subsidized imports. Until global trade negotiations address these protectionist regimes, we rely on these findings to limit unfair competition and its negative impact on our industry."

Canada is one of the few developed country markets in the world that does not subsidize and protect its sugar producers. In contrast, the US and EU sugar programs keep internal sugar prices at two to three times the world price. This stimulates production and the resulting over-supply must then been exported at artificially low prices. Without recourse from antidumping and countervailing duties, Canada's open and developed market is an obvious destination for this unfairly priced surplus sugar.

The Tribunal's decision will help sustain a value-added Canadian industry that continues to provide Canadian consumers and food manufacturers with a reliable and low cost supply of refined sugar.

About Rogers Sugar Income Fund

The Fund is an open-ended, limited purpose trust established under the laws of the Province of Ontario. The Fund holds all of the common shares of Rogers and Lantic.

Rogers has been in the sugar business since 1890 and is the leading refiner, processor, distributor and marketer of sugar products in Western Canada. As the sole sugar processor in Western Canada, Rogers supplies over 90% of the demand for refined sugar in that region. Rogers has two sugar processing facilities, a cane sugar refinery in Vancouver, British Columbia and a beet sugar processing facility in Taber, Alberta. Rogers' sugar products are marketed primarily under the "Rogers" trade name and include granulated, icing, cube, yellow and brown sugars, liquid sugars and specialty syrups.

Lantic is one of two refiners in Eastern Canada and operates a cane sugar refinery in Montreal, Quebec. Lantic's sugar products are marketed primarily under the "Lantic" trade name and include granulated, icing, cube, liquid, yellow and brown sugars.

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