Within days of learning the Mexican Ministry of Economy had reinstituted a 45 percent antidumping duty on certain apples from the Northwest, U.S. growers were informed that a live codling moth larvae was detected in a shipment of Washington apples shipped to Taiwan in early October.

The Mexican antidumping duty, which had been imposed on Red Delicious and Golden Delicious apples in 2002 and suspended in May, was reintroduced Sept. 29 by publication in that country's federal register.

And the codling moth announcement came soon after, according to a report filed by the Northwest Horticultural Council. The find of a live larva constituted the "first strike" of 2005 under terms of a Taiwan plan for U.S. exports. The plan allows for two such strikes, with a third find resulting in immediate suspension of U.S. apple shipments to that Asian nation.

In 2004, approximately 8.3 million boxes of apples were shipped to Mexico, with Red Delicious the top variety with 3.7 million boxes and Goldens coming in at 2.8 million. Taiwan is also a strong export market, taking 2 million boxes of primarily Fujis in 2004.

Commenting on the Mexican action, which will likely slow exports to the largest foreign market for U.S. apples, grower-shippers in the Northwest agreed that resolution is imperative.

The tariff has created an unequal playing field, said Mike Hambelton, vice president of marketing for Wenatchee, WA-based Columbia Marketing International.

Mr. Hambelton went on to say that Washington is probably better off this year than last year, when the duty was imposed at nearly 47 percent.

That duty was the result of an investigation into alleged dumping during the mid-1990s, and several Washington apple houses were exempt from the higher tariff in 2004 based on sales data provided for 1990s time frame. They are Allan Bros. Inc., Price Cold Storage & Packing and Zirkle Fruit Co., all based in the Yakima region. Allan Bros. was required to pay a duty of just under 11 percent, while Price was given a zero percent duty and Zirkle a 2 percent duty.

Mr. Hambelton noted that in 2005, quite a bit of tonnage of Red and Golden Delicious is going in with low tariffs, and that represents a good supply, so there will be more apples that can go in with lower duties.

He added, But what it means to us at CMI is that we probably wont ship Reds and Goldens down there to any extent, and were reviewing our next step.

Randy Steensma, president of Nuchief Sales in Wenatchee, WA, said that 10 percent of his companys Red and Golden volume goes to Mexico, and the 45 percent duty is money out of our growers pockets.

Noting that Mexican receivers are only willing to pay a certain delivered cost, he went on to say that the high tariff looks like it will be a protracted problem. Still, Nuchief is committed to its export program, he said. We dont want to have to go elsewhere, so its in our best interest to come up with an equitable solution. Maybe we should establish minimum pricing or a promotions fund. We do have a group trying to negotiate a fair settlement between the growers and the Mexican government, and we want to solve this problem, because if we dont, it will [eventually] become every variety thats affected.

Representing Rainier Fruit Co., sales and marketing arm for Zirkle Fruit, Marketing Director Suzanne Wolter said that the new duty will not change our business.

Rainier also works with Price Cold Storage and Allan Bros., and Ms. Wolter said, Price had no tariff all of last year and will not again this year, so we were already in a situation that was advantageous.

She also stated, Mexico is an important customer, but the majority of our business is focused on the United States and Canada.

Mr. Hambelton said that the Taiwan situation is of more concern to him than Mexico, and Mr. Steensma summed up the first strike as scary.

Taiwan is a very valuable market for Washington growers, Mr. Steensma said. The protocol is tough, and we take it very seriously, setting aside orchards and withdrawing lots when we need to. Washington has to self-police.

Codling moth quarantine could be a serious issue for the Fuji crop, Messrs. Hambelton and Steensma agreed. Last year a ban was imposed on Dec. 21 following the third instance of codling moth larvae discovered in U.S. apple shipments. The first two instances of larvae in 2004 involved product from Washington state and California, and the third was in apples from Oregon. The ban was lifted in late April.