Apple industry prevails in extending concentrate antidumping order
Apple industry prevails in extending concentrate antidumping order
The U.S. International Trade Commission in Vienna, VA, voted to maintain the current antidumping order on imports of Chinese non-frozen apple juice concentrate to avoid further injury to the domestic apple industry.
In a unanimous vote, the ITC commissioners voted to prevent a return of the predatory pricing practices of the 1990s, which harmed the domestic concentrate industry. The decision is the last step in the process to extend the current antidumping order for five years. The U.S. Apple Association submitted substantive comments in support of the extension.
"We are gratified that both the ITC and the U.S. Department of Commerce agreed with the need to continue the anti-dumping order and its associated duties," said USApple President and CEO Nancy Foster. In addition to keeping a fair market available for the remaining U.S. concentrate producers, today's ruling will support all U.S. apple growers in maintaining a market for juice apples.
In 2000, the ITC and the Department of Commerce agreed that certain Chinese concentrate producers were selling non-frozen apple juice concentrate in the United States at prices below the cost of production. At that point, duties ranging from 3 percent to almost 52 percent were assessed on certain Chinese producers, though some concentrate producers qualified to ship product into the United States with no duties.
By law, anti-dumping orders must be reviewed every five years to ensure that the order is still necessary and appropriate through a process known as a sunset review.
USApple argued that there was significant evidence that Chinese concentrate producers would return to unfair pricing without the protection of the order, and the Department of Commerce announced that it agreed. USApple submitted information to the ITC outlining the significant economic harm that had already been done to the domestic concentrate industry by the predatory pricing. At least six domestic apple juice concentrate firms have either gone out of business or closed plants because of the impact of significantly increased imports of Chinese apple juice concentrate and the resulting low apple juice concentrate prices in the United States, USApple said in its comments filed this summer. The domestic industry has suffered serious harm and deterioration as demonstrated by these plant closings.
Removal of the order would have encouraged some Chinese concentrate firms to offer lower prices in the U.S. market hoping to attract new customers, while others could attempt to defend their market share by driving the prices even lower, explained Ms. Foster. Because apple juice concentrate is a commodity with little quality difference between suppliers, the only way to gain market share is through price reductions.
In a unanimous vote, the ITC commissioners voted to prevent a return of the predatory pricing practices of the 1990s, which harmed the domestic concentrate industry. The decision is the last step in the process to extend the current antidumping order for five years. The U.S. Apple Association submitted substantive comments in support of the extension.
"We are gratified that both the ITC and the U.S. Department of Commerce agreed with the need to continue the anti-dumping order and its associated duties," said USApple President and CEO Nancy Foster. In addition to keeping a fair market available for the remaining U.S. concentrate producers, today's ruling will support all U.S. apple growers in maintaining a market for juice apples.
In 2000, the ITC and the Department of Commerce agreed that certain Chinese concentrate producers were selling non-frozen apple juice concentrate in the United States at prices below the cost of production. At that point, duties ranging from 3 percent to almost 52 percent were assessed on certain Chinese producers, though some concentrate producers qualified to ship product into the United States with no duties.
By law, anti-dumping orders must be reviewed every five years to ensure that the order is still necessary and appropriate through a process known as a sunset review.
USApple argued that there was significant evidence that Chinese concentrate producers would return to unfair pricing without the protection of the order, and the Department of Commerce announced that it agreed. USApple submitted information to the ITC outlining the significant economic harm that had already been done to the domestic concentrate industry by the predatory pricing. At least six domestic apple juice concentrate firms have either gone out of business or closed plants because of the impact of significantly increased imports of Chinese apple juice concentrate and the resulting low apple juice concentrate prices in the United States, USApple said in its comments filed this summer. The domestic industry has suffered serious harm and deterioration as demonstrated by these plant closings.
Removal of the order would have encouraged some Chinese concentrate firms to offer lower prices in the U.S. market hoping to attract new customers, while others could attempt to defend their market share by driving the prices even lower, explained Ms. Foster. Because apple juice concentrate is a commodity with little quality difference between suppliers, the only way to gain market share is through price reductions.
