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U.S. District Court Finds in Favor of USDA Concerning the Spanish
Clementine Lawsuit
On August 15,
2002, the U.S. District Court for the Eastern District of Pennsylvania found in
favor of USDA concerning the Spanish Clementine lawsuit, stating that the
Secretary’s action to ban Spanish clementines was rational, prudent and in
accord with applicable law. Spanish
clementine interests, consisting of clementine growers and U.S. importers of
clementines, filed the lawsuit on February 28, 2002.
They filed suit against USDA for its ban on all imports of Spanish
clementines. The ban was put into
place on December 5, 2001, after several instances which live Medfly larvae was
found in several U.S. states. The
plaintiffs had asked the court for a preliminary injunction that would require
USDA to permit limited distribution of Spanish clementines, subject to all the
conditions currently required by the “work plan” established for shipment
and imports of clementines. The
court stated in its favorable ruling that the Secretary of Agriculture’s
action (the ban) was rational, prudent and in accord with applicable law; that
she is seeking to implement a regulation which would allow for the safe
resumption of clementine imports from Spain; and that there is no basis on the
current record to conclude that she is not proceeding conscientiously and within
a reasonable time frame.
Brazil Requests WTO Dispute Settlement Panel to Review Florida’s Equalizing Excise Tax
On August 16, 2002, Brazil formally requested a Dispute Settlement Panel to review Florida’s Equalizing Excise Tax. Brazil claims that the tax is inconsistent with the obligations of the United States under Articles III:1, III:2, and III:4 of the GATT. This formal request follows a number of developments concerning the Equalizing Excise Tax. On March 20, 2002, Brazil requested formal consultations pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes and Article XXII of the GATT. Under a previously existing state statute, Florida taxed all orange juice processed in the state from oranges produced in Florida and imported frozen concentrated orange juice (FCOJ) from Brazil and placed the revenue in a trust fund. These funds were used to finance advertising, marketing and scientific research on processed and fresh citrus products. In a parallel development, five multinational citrus processors sued the Florida Department of Citrus, arguing that the Equalizing Excise Tax violates the commerce clause in the U.S. Constitution that reserves to the Congress the authority to tax imports. WTO consultations were held between the United States and Brazil in May and June 2002. In its request to formally initiate a WTO dispute settlement, Brazil acknowledges that the Florida statute was amended, but that they are unsure as to whether the elimination of the exemption for juice produced in states other than Florida is permanent.
U.S. Pear Exports Reached Record Value and Volume
During the 2001/02 marketing season (July-June), the United States exported more than 170,000 tons of pears, valued at $98 million, both records. Mexico, with nearly half of the export volume and value, remained the top destination for U.S. pears in 2001/02. U.S. exports to Mexico, however, declined 4 percent in volume to 81,450 tons and 2 percent in value to $44 million. Shipments to Canada, the second largest buyer of U.S. pears, totaled 50,000 tons, about a third of the export volume, and $34 million or 35 percent of the valued exported. Combined, Mexico and Canada alone accounted for three quarters of the volume and 80 percent of the value. The Netherlands (5 percent), Venezuela (4 percent), and Sweden (2 percent) completed the top five markets. Ample supplies of good quality fresh-marketed pears, the continued diversion of more processing pears into the fresh market, and continued promotion efforts kept U.S. pear exports strong. Exports have become vital for the success of the U.S. pear industry, generating a significant and growing share of the income of pear farmers.
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