NATTWG meets in Mexico to hear dumping claim
NATTWG meets in Mexico to hear dumping claim
Dumping issues among the United States, Canada and Mexico are nothing new, but a pending renewal of a dispute would be the third such major legal entanglement in a decade.
On June 29, just after The Produce News went to press, a meeting of the North American Tomato Trade Working Group was called to order in Guadalajara, Mexico. The organization, formed by the industry in March 2002, is designed to act as a forum to discuss tomato-related trade issues before they become serious legal problems. At the top of this meeting's agenda is a burgeoning dumping accusation that U.S. organizations are claiming against Canada.
Bringing the issue to the table at this meeting are the Florida Tomato Committee in Maitland, FL, and the California Tomato Commission, headquartered in Fresno, CA. The California Tomato Commission issued a letter to Canadian producers prior to the meeting which implied that recent discoveries indicate that an unknown number of companies were selling tomatoes in the United States at less than the cost of production, which is precisely one of the issues that the trade agreement was put in place to prevent.
Ed Beckman, president of the California Tomato Commission, acknowledged sending the letter but refused to provide The Produce News with a copy and would not reveal its contents. He said that the group meets periodically to discuss issues including dumping, and for a letter to be issued regarding a topic prior to a meeting is not unusual.
"There are a number of issues on the meeting's agenda, and this is simply one we are going to discuss," said Mr. Beckman. "There will no doubt be more news following the meeting."
On June 21, more than a week prior to the meeting in Mexico, Kristen Callow, general manager of the Ontario Vegetable Greenhouse Growers, responded to requests for industry updates by saying she was not available because, "I am going to be in Mexico for meetings." The group is a membership-based organization that conducts research, and promotes and lobbies on behalf of Ontario greenhouse vegetable growers.
Of the current situation, Reggie Brown, manager of the Florida Tomato Committee, said, "When substantial amounts of product reach the market on consignment -- I give you the product and you sell it for whatever you can get -- it suppresses prices for all producers," he explained.
"For example," he continued, "a widget costs 40 cents to produce. An export producer is selling his widgets in the U.S. for 25 cents. He is effectively dumping product into the U.S. market. The results are obvious - those who are trying to sell product at fair market prices cannot compete, and they go broke in their own markets. This is in violation of our trade laws, and it leads to major litigation between countries."
Mr. Brown said that there are indications of such activity in the market recently. He added that the tomato working group, which was organized to create dialogue instead of litigation, and is comprised of professionals from all three countries whose job it is to work together to facilitate discussions and resolutions.
"That is what we hope will be the result of the meeting," said Mr. Brown. "But we are prepared to do whatever is necessary to protect the U.S. industry from the damage it will suffer if the problem is not resolved."
On June 29, just after The Produce News went to press, a meeting of the North American Tomato Trade Working Group was called to order in Guadalajara, Mexico. The organization, formed by the industry in March 2002, is designed to act as a forum to discuss tomato-related trade issues before they become serious legal problems. At the top of this meeting's agenda is a burgeoning dumping accusation that U.S. organizations are claiming against Canada.
Bringing the issue to the table at this meeting are the Florida Tomato Committee in Maitland, FL, and the California Tomato Commission, headquartered in Fresno, CA. The California Tomato Commission issued a letter to Canadian producers prior to the meeting which implied that recent discoveries indicate that an unknown number of companies were selling tomatoes in the United States at less than the cost of production, which is precisely one of the issues that the trade agreement was put in place to prevent.
Ed Beckman, president of the California Tomato Commission, acknowledged sending the letter but refused to provide The Produce News with a copy and would not reveal its contents. He said that the group meets periodically to discuss issues including dumping, and for a letter to be issued regarding a topic prior to a meeting is not unusual.
"There are a number of issues on the meeting's agenda, and this is simply one we are going to discuss," said Mr. Beckman. "There will no doubt be more news following the meeting."
On June 21, more than a week prior to the meeting in Mexico, Kristen Callow, general manager of the Ontario Vegetable Greenhouse Growers, responded to requests for industry updates by saying she was not available because, "I am going to be in Mexico for meetings." The group is a membership-based organization that conducts research, and promotes and lobbies on behalf of Ontario greenhouse vegetable growers.
Of the current situation, Reggie Brown, manager of the Florida Tomato Committee, said, "When substantial amounts of product reach the market on consignment -- I give you the product and you sell it for whatever you can get -- it suppresses prices for all producers," he explained.
"For example," he continued, "a widget costs 40 cents to produce. An export producer is selling his widgets in the U.S. for 25 cents. He is effectively dumping product into the U.S. market. The results are obvious - those who are trying to sell product at fair market prices cannot compete, and they go broke in their own markets. This is in violation of our trade laws, and it leads to major litigation between countries."
Mr. Brown said that there are indications of such activity in the market recently. He added that the tomato working group, which was organized to create dialogue instead of litigation, and is comprised of professionals from all three countries whose job it is to work together to facilitate discussions and resolutions.
"That is what we hope will be the result of the meeting," said Mr. Brown. "But we are prepared to do whatever is necessary to protect the U.S. industry from the damage it will suffer if the problem is not resolved."
