US (FL): Citrus growers close to appealing Brazil OJ decision
"We continue to believe that the ITC made the wrong decision in this case for a number of reasons," said Michael W. Sparks, executive VP/CEO of Florida Citrus Mutual. "There’s been extreme volatility in the marketplace since the revocation of the order providing clear proof that the order was doing what it was supposed to do – make the Brazilian processors play by the rules.
"We will continue to consider our options to appeal and if necessary, we will file a new petition because we know the dumping isn’t going to stop."
Since the Commission revoked the anti-dumping order on March 14 many of their assumptions have been severely undermined; OJ futures prices have declined by 40 percent, the effects of carbendazim have significantly reduced consumer demand and Brazilian shippers expect to have carbendazim-free concentrate back on the market in less than six months.
In addition, Brazilian production outstripped the Commission’s estimate by 7 percent for both the current season and next year. A week after the vote, the Brazilian industry reported anticipated inventories 40 percent higher than predicted by the Commission.
An anti-dumping order covering the major Brazilian orange juice processors was put in place in 2006. Dumping is defined as selling product for less than “normal value,” including prices below the cost of production. It can severely harm domestic producers by subsidizing cheaper U.S. sales with higher priced foreign sales destabilizing world markets. If a domestic industry can prove foreign producers are dumping then anti-dumping deposits can be imposed by the U.S. Department of Commerce (DOC).
The DOC annually reviews sales and if the dumping stops, the deposits are refunded. If the dumping continues then the company(s) forfeits the duties or is required to pay additional duties. For more information on dumping, please go to Mutual’s website at http://www.flcitrusmutual.com/industry-issues/trade/dumpingcase.aspx.
The Florida citrus industry creates a $9 billion annual economic impact, employing nearly 76,000 people, and covering more than 550,000 acres. Founded in 1948 and currently representing nearly 8,000 grower members, Florida Citrus Mutual is the state’s largest citrus grower organization.
Source: southeastagnet.com
