Changes in Mexican duty

Despite higher prices, shipments of Washington apples to Mexico are running nearly the same as last year. Season to shipments at close to 8.2 million cartons through mid-July.

Little by little, Mexico's protectionist measures against Northwest red and golden delicious apples are falling apart. That's the take I received from one Northwest U.S. apple leader about this recent news report from the USDA Foreign Agricultural Service;

On November 13, 2002, a small number of Mexican fruit importing companies petitioned the Secretariat of the Economy (SE) to revoke the August 12, 2002 final resolution on anti-dumping duties on Red and Golden Delicious apples shipped by non-Northwest Fruit Exporters (NFE) companies. This resolution imposed a compensatory duty of 46.58 percent on imported Red and Golden Delicious apples from all but two U.S. companies that are not members of the NFE. The two excepted companies received a zero duty from that ruling. This ruling was confirmed roughly one year later, on August 6, 2003. The Mexican companies were given an opportunity on October 10, 2003, to state their case for the nullification of the August 2002 ruling in front of the Federal Tribunal of Fiscal and Administrative Justice. The Mexican fruit importing companies were successful in their arguments, and on March 29, 2005 the Federal Tribunal issued a verdict declaring the nullification of the August 12, 2002 publication, as well as the confirmation of that decision. The Secretariat of the Economy (SE) disagreed with this ruling, and appealed the decision. UNIFRUT, the Mexican Apple Producers Association, complemented this appeal by petitioning the court for an injunction against the Federal Tribunal decision. However, the SE appeal was rejected, and the NIFRUIT court injunction was denied. On March 20, 2007, the Federal Tribunal demanded that SE comply with the March 29, 2005 verdict, and gave SE 20 days to meet the terms of this ruling. On July 3, 2007, SE announced in the Diario Oficial (Federal Register) that the Final Resolution on the antidumping case on Red and Golden Delicious Apples, published on August 12, 2002, is without effect, as well as the confirmation of this ruling in the same publication on August 6, 2003. The cancellation of this resolution essentially means that non-Northwest Fruit Exporters (NFE) companies are no longer subject to a compensatory duty when exporting Red and Golden Delicious apples to Mexico. SE considers NFE members to be those companies listed in the May 25, 2005 and the November 2, 2006 resolutions published in the Diario Oficial. The compensatory duties published in the resolution of November 2, 2006 are still applicable for NFE companies.

Statement from United and PMA

TK: Here is the latest communication from Bryan Silbermann of PMA and Tom Stenzel of United on the meeting between leadership groups of both associations yesterday.:


Friends,

On Monday we shared with you information about the July 18 meeting our two associations had planned in Chicago. We said that “both associations' priority is always to deliver the best value to our members, and our volunteer leaders and staff have been talking about ways to do that better. We are now exploring ways to enhance member value through collaboration between our two associations, although there is no predetermined endpoint such as merger. Rather, we are focusing on enhancing value to members of both associations and letting that guide our discussions.”

Yesterday’s meeting was the second this year between representatives of our respective leaderships. Our discussions have focused on how the two associations can work more effectively together in future for the benefit of our industry members. We discussed a variety of options on how to accomplish this. Our Boards will receive a report on this meeting and we will involve them in continuing the discussions. Both of our associations have leadership meetings already planned over the next several months and these will give us the opportunity to examine the variety of options available. We are committed to sharing the outcome of those discussions with one another.

COOL in play

The House Agriculture Committee is wrapping up its work on chairman's mark of the farm bill, but one source close to the committee said there may be an amendment on country of origin labeling offered but then withdrawn. The COOL amendment may be considered separately from all the other amendments offered today but before the bill is forward to the House floor next week. Meat industry leaders were reportedly sent into a room and told not to come out until they had agreement, but no word yet on if they have emerged in unity. In any event, some amendment is likely to be offered that will maintain the 2008 effective date, keep origin labeling mandatory but change some features of the law.

Turning toward the Senate

The Specialty Crop Farm Bill Alliance and their champions on the House Agriculture Committee have delivered a great outcome for the farm bill that will be sent to full House. The House is expected to consider the farm bill the last week of July, but that timetable could be fluid. House leaders may not want to have more than a month go by before the Senate takes up its version of the farm bill.
Some believe the Iraq war debate in the Senate could limit consideration of the farm bill there, and one Farm Bureau lobbyist was quoted that it is a 50/50 proposition that the Senate will finish work on the farm bill by the end of the year. No serious work is anticipated from the Senate Agriculture Committee until September, and industry lobbyists say they have seen no language from Senate Agriculture Committee chairman Tom Harkin's office yet.
On a positive note for the industry, the House farm bill- still being marked up today - will put some "sideboards" around what happens in the Senate.