The U.S. International Trade Commission (ITC) imposed an anti-dumping order in 2006 against Brazilian orange juice processors following Florida Citrus Mutual’s successful petition and prosecution of that claim.
The ITC determined that at least four of the major Brazilian exporters, including Citrosuco, Cutrale, Dreyfus and Montecitrus, were selling product into the U.S. marketplace a less than cost of production — otherwise known as dumping — and it was causing material injury to the domestic industry.
As a result, the processors have to pay a deposit each year which is refunded if they do not dump juice into the U.S. market. Mutual has continued to participate in annual reviews and litigation to make sure the order remains in effect, and that its pricing discipline prevents additional dumping.
Every five years, the United States conducts a “sunset review” to determine whether those duties should remain in place or be revoked, taking into consideration how that would impact the U.S. industry, including Florida growers.
Mutual supports an extension of the antidumping order. It has helped many growers achieve a reasonable return in recent years even in an environment of rising production costs.
Plus, anti-dumping orders are ultimately good for the U.S. consumer because they bring fairness to the marketplace. Predatory pricing is meant to eliminate competition. Of course we know monopolies are bad for consumers.
A critical part of the government’s review is a questionnaire the U.S. International Trade Commission sends to select Florida citrus growers.
The ITC will begin distributing the survey soon and Florida Citrus Mutual encourages growers to fill it out fully and honestly so the government has a complete record on the state of the industry and the potential problems we will face if the order is revoked.
The survey will gather information on growers operations and financial condition. They will aggregate the information you provide in these questionnaires with public information to obtain a picture of the U.S. citrus industry as a whole.
Mutual understands that some of the questions may be confusing or difficult to answer. If you have questions about the survey, contact FCM immediately. Even if you do not have the requested data, the Commission is generally cooperative in permitting reasonable estimates and extensions of time.
We also want to assure you that the information provided in these questionnaires will be kept strictly confidential and will only be available to the Commission staff and outside attorneys involved in the case who are bound by the strict terms and cannot reveal the information to their clients. The information will not be available to any of your competitors or to other government agencies, such as the IRS or ICE.
Mutual thanks you in advance for presenting the ITC with a complete and accurate picture of our industry and the challenges we face. Mutual will continue to fight to make sure Brazilian processors are playing by the rules. The future of the $9 billion citrus industry and the 76,000 jobs it supports is at stake.
For more info about the anti-dumping order please go to Mutual’s trade page at http://flcitrusmutual.com/industry-issues/trade.aspx