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California’s Garlic Industry Importing Chinese Garlic
An article in the L.A. Times dated August 4, 2003, reported that California garlic producers have recently started importing garlic from China. The article stated that wholesale garlic prices have plummeted in recent months, due to rising low-priced competition from China and customers demanding garlic for prices lower than California growers can produce it. The California garlic industry has lobbied politicians over the last ten years for protection. The U.S. industry suspects that the Chinese garlic is being transshipped to avoid antidumping duties of almost 400 percent imposed since 1994. According to FAOSTAT, China produces 72 percent of the world’s garlic, while the U.S. produces two percent. In 2002, U.S. garlic imports from China reached $20.6 million, up over 300 percent from 2001. From January to May 2003, U.S. fresh garlic imports from China $24.8 million, up almost 200 percent over the same period last year. If transshipments were included, the figure for total U.S. garlic imports from China would be much higher.
Thailand Opens Import Market For Potatoes
On July 31, 2003, FAS Bangkok reported that the Thai Cabinet finally approved an "above TRQ" allocation for processing potatoes. Thai processors may now put in orders for northern hemisphere (hopefully U.S.) origin potatoes. In 2003, the cabinet approved out-of-quota import licenses for potatoes in the amount of 25,400 tons at a duty rate of 27 percent. This is a significant improvement over the original offer of a TRQ of a mere 300 tons (at 27 percent duty) with the out-of-quota duty at 126.4 percent. The quota was given to Pepsi-Cola (Thailand) Trading Co., Ltd. at the amount of 15,000 tons, Berry Yuker Food Co., Ltd. at the amount of 7,600 tons and Unichamp Co., Ltd. at the amount of 2,800 tons. Over the recent years, U.S. fresh potato exports to Thailand have been dropping rapidly. U.S. fresh potato exports to Thailand were $0, in 2002, $29,000 in 2001, and $590,000 in 2000. This new TRQ allocation is expected to help boost U.S. potato exports to Thailand.
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