CHINA ASSESSED 55 PERCENT DUTY ON APPLE-JUICE CONCENTRATE IMPORTS

U.S. Apple Growers and Processors Laud Commerce Department Dumping Ruling

The U.S. Department of Commerce today levied duties of 54.55 percent on most Chinese apple-juice concentrate imports, in response to a dumping complaint lodged by the U.S. apple industry.

"Our nation's apple growers and processors have been economically ravaged by dumped Chinese concentrate imports," said U.S. Apple Association (USApple) President and CEO Kraig R. Naasz. "Our industry can compete with anyone in a fair fight. Today's ruling should level the playing field, and help restore our industry's financial footing."

Imports of Chinese concentrate increased by more than 1,200 percent between 1995 and 1998, from 3,000 metric tons to 40,000 metric tons, according to the U.S. Census Bureau. During that same period, the average price of Chinese concentrate imports declined by more than 53 percent, from $7.65 per gallon in 1995 to $3.57 per gallon in 1998. China's share of the U.S. concentrate market has increased from 1 percent in 1995 to 18 percent in 1998. Meanwhile, the average price for U.S.-made apple-juice concentrate has fallen by 50 percent since 1995, while the average price U.S. growers receive for juice apples has declined by 64 percent-from $153 per ton in 1995 to $55 per ton in 1998-as a result of below-cost Chinese concentrate imports. Apple growers have lost more than $135 million in revenue since 1995 from a decline in juice-apple prices, according to the U.S. Department of Agriculture. "

Unfortunately, we've seen far too many otherwise competitive growers and processors drown in the sea of red ink caused by China's unfair pricing practices," said Naasz. "Today's decision has buoyed our spirits and possibly preserved our survival."

The Commerce Department previously ruled Nov. 3 that duties, once established, would be assessed retroactively by 90 days to offset the harm caused by a recent surge of dumped imports. Specifically, importers must make a cash deposit or post a bond equal to the duty amount on any imports of Chinese concentrate that entered the United States since August 17, pending the Commerce Department's final decision.

"We look forward to working with the U.S. Customs Service to ensure full collection of the duties, and to prevent any schemes to circumvent the Commerce Department's ruling," said Naasz. The Commerce Department is scheduled to issue its final dumping determination by Jan. 31, 2000, whereas the U.S. International Trade Commission (ITC) is expected to announce its final injury decision by mid-March of next year. The ITC issued its preliminary decision July 22, ruling unanimously that the U.S. apple industry has been economically injured by below-cost Chinese concentrate imports.

"U.S. apple growers and processors began looking for a remedy to unfairly-priced imports more than a year ago," said Naasz. "We hope and expect that today's favorable dumping ruling will be affirmed when the U.S. government issues its final decision later this winter."

The Commerce Department initiated its investigation on June 28 in response to the filing of a dumping petition by the U.S. apple industry on June 7. The U.S. apple industry's efforts to combat China's unfair pricing practices have generated significant support among the nation's elected officials. Twenty-three members of the U.S. Senate, 51 members of the U.S. House of Representatives and several governors wrote Commerce Secretary William Daley in September to request retroactive duties and a dumping decision at the earliest possible date.

The apple industry's antidumping initiative is being overseen and funded by the Coalition for Fair Apple-Juice Concentrate Trade (FACT), comprisedof state and regional apple associations, processors and concentrators. Administered by USApple, FACT also received financial support from the State Departments of Agriculture of Washington, Virginia, Pennsylvania and Michigan. The dumping petition was prepared for FACT by the international law firm of Skadden, Arps, Slate, Meagher & Flom LLP, and filed on behalf of the following domestic concentrate producers: Coloma Frozen Foods, Inc., Coloma, Mich.; Green Valley Packers, Arvin, Calif.; Knouse Foods Cooperative, Inc., Peach Glen, Pa.; Mason County Fruit Packers Cooperative, Inc., Ludington, Mich.; and Tree Top, Inc., Selah, Wash. For more information, please contact USApple at (703) 442-8850 or consult the News Room section of the association's website at http://www.usapple.org.

NOTE: For information about downloading from satellite videotaped comments by USApple President Kraig Naasz, contact Kristen Malott with the Washington Agri-News Service at telephone (509) 665-7816.

The U.S. Apple Association (USApple) is the national trade association representing all segments of the apple industry. Members include 36 state apple associations representing 9,000 apple growers, as well as more than 450 individual firms involved in the apple business. USApple's mission is to provide the means for all segments of the U.S. apple industry to join in appropriate collective efforts to profitably produce and market apples and apple products.