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August 16, 2002
Mexico Reimposes Antidumping Duty on U.S. Apples
On Friday August 9, 2002, Mexico’s Secretariat of Economy (SE) announced a resolution to cancel the U.S/Mexico apple dumping suspension agreement, agreed upon in 1998. With this action, SE reinitiates the antidumping investigation that started in 1997 on imports of U.S. Red and Golden delicious apples. However, SE did not reinstate the previously imposed 101-percent antidumping duty established in 1997, but rather a provisional 46.58 percent rate which was to be applied on imported U.S. product effective August 13. Reportedly, the reestablishment of the dumping investigation comes in response to Mexican concerns over increased U.S. shipments of Golden delicious apples during the current peak marketing season of domestically produced apples. Two companies, Price Cold Storage and Packing and Washington Fruit and Produce, are exempted from paying the antidumping duty. Both companies, however, must certify that the apples are from these companies in order to be exempted from the duty. U.S. apple exports to Mexico were severely hampered by the implementation of the 101-percent antidumping duty imposed in September 1997. The duty was subsequently lifted in March 1998 following the suspension agreement. Reestablishment of the antidumping duties will adversely affect U.S. apple shipments to Mexico, which is the top market for U.S. apples. In marketing year (MY) 2000/01, U.S. apple sales to Mexico totaled nearly 225,000 tons, valued at a record $125 million. U.S. shipments to Mexico tend to be the lightest during the period September-December, with the bulk of the volume moving between January and August.
Commerce Department Issues Preliminary Review Decision on Iranian Pistachios
On August 6, 2002, the Department of Commerce’s International Trade Administration (ITA) issued a preliminary decision under a New Shipper Review of the antidumping duty order on raw pistachios from Iran. The review petition was filed by the Tehran Negah Nima Trading Company (Nima). The ITA assessed a preliminary dumping margin of 120.04 percent. When combined with the existing countervailing duty, Nima’s duty will be 162.70 percent for all shipments of raw pistachios to the United States. The new duty only applies to pistachio shipments from Nima. For all other Iranian shippers of raw pistachios, a 283.80 percent duty will continue to apply (318 percent for roasted product). These original duties were imposed on Iranian pistachio imports in 1986 in response to the dumping and subsidy practices utilized by the Iranian industry. The U.S. Normal Trade Relations duty rate on raw pistachios is 0.9¢ per kilogram for inshell and 1.9¢/kg for shelled. The August 6 ITA decision is just preliminary, and there will be several proceedings between now and the end of the year where the parties to this review will be able to submit additional information to the ITA detailing Nima’s trade. A final determination is expected by the end of the year. Other, similar petitions by Iranian pistachio interests are pending before the ITA and will be proceeding on their own schedules. Iran is the world’s largest producer and exporter of pistachios. U.S. imports of pistachios from Iran topped $40 million in 1984, but fell off to zero following the imposition of the antidumping and countervailing duties in 1986. In 2001, for the first time in many years, the United States reported small levels of pistachio imports from Iran ($0.25 million).
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