The U.S. International Trade Commission (ITC) has struck a blow to Florida citrus growers by voting to revoke the anti-dumping order on certain Brazilian orange juice processors.
The ITC said removing the anti-dumping order would not materially harm the Florida citrus grower despite increased Brazilian production, declining U.S. consumption and rapidly escalating costs of production.
An anti-dumping order covering three major Brazilian orange juice processors – Cutrale Citrus Juice, Citrosuco Paulista and Louis Dreyfus – has been in place since 2006. Every five years, the U.S. conducts a “sunset review” to determine whether duties should remain in place on Brazilian OJ or be revoked, taking into consideration how that would impact the U.S. industry, including Florida growers.
The decision came after Florida Citrus Mutual (FCM) spent the past six months building a case against the Brazilians.
“Florida Citrus Mutual is extremely disappojnted with this decision and we will review next steps including an appeal,” said Michael W. Sparks, FCM’s executive VP/CEO. “Over the past five years Brazilian processors have continued to dump cheap product into the United States as their residual market and I cannot see any reason why they would stop, especially if the anti-dumping order goes away.”
Dumping is bad because it can drive domestic producers out of business while destabilizing world markets. U.S. firms can file an anti-dumping petition with the International Trade Commission, which investigate the matter.
If a domestic industry can prove foreign producers are selling product for less than “normal value,” including below the cost of production, then anti-dumping deposits can be imposed by the government.
The FDOC annually reviews sales and if the dumping stops, the deposits are refunded. If the dumping continues then the company(s) forfeits the duties. The order can be lifted when a company successfully completes three consecutive reviews without dumping.
For more information on dumping, please go to Florida Citrus Mutual’s website.