Washington potatoes gain ground in dumping dispute
Washington potatoes gain ground in dumping dispute
MOSES LAKE, WA Since joining the Washington State Potato Commission in February 2005 as its director of trade, Matt Harris has tackled a number of issues involving foreign trade partners of the United States, and the recent hearing before the Canadian International Trade Tribunal is one of the more prominent.
The July hearing, which lasted three-and-a-half days, brought Washington potato growers, industry experts and economists before the CITT. Through attorneys working on its behalf, the U.S. contingent presented the Canadian tribunal with historical, scientific and economic evidence that ultimately resulted in the British Columbia Vegetable Marketing Commission conceding that "dumping of red, yellow and exotic potatoes has not taken place and that those varieties should be removed from the dumping order," according to Mr. Harris.
Anti-dumping duties have been levied on Washington potatoes for 21 years, and the BCVMC had sought a continuance of the duties. Mr. Harris and the Washington industry maintain that the entire dumping order be removed on white and Russet varieties as well.
It is anticipated that CITT will render a decision Sept. 12.
The WSPC case presented in Vancouver included testimony presented by Joseph Guenthner, an agricultural economist from the University of Idaho, that fresh potato profitability has historically followed a six-year cycle in which some years show a profit, some are a loss and some barely break even.
Economic evidence presented by Nick Young, an agricultural economist and president of Promar International, revealed that Washington potato exports to British Columbia typically increase only when prices are up.
The data gathered by Mr. Young contradicted the B.C. growers' claims that the province is a dumping ground for low-priced U.S. potatoes that cannot go anywhere else. Mr. Young also found that even in the lowest price cycle for potatoes, price returns for British Columbia potato growers are considerable.
In a statement concerning the long-endured issue, Mr. Harris said, The dumping duties that have been put in place have only protected Canadian growers by supporting them with an artificial price floor, discouraging them from seeking new means to increase quality and marketability of their own product.
Mr. Harris added, Our case was clearly the most substantial. It was interesting to listen to the detailed evidence about our industry and fun to watch the attorneys cross swords before the Tribunal.
Washington growers offering evidence included Allen Floyd from Othello, Jack Wallace from Skagit Valley, Del Christensen from Mattawa and Dennis Conley, a Moses Lake, WA, consultant.
Representing the state were international trade and customs attorneys Joel Junker of Seattle and Darrel Pearson of Gottleib and Pearson in Toronto.
By seeking a total of over 30 years of protection, Mr. Junker said that the B.C. growers reminded him of a quote from a British politician, They want kinder capitalism, a gentler market economy and an air conditioned jungle.
The CITT panel, consisting of professionals in business, law and economics, was very intent in learning the truth about how the North American potato industry functions with regard to marketing, supply, demand and price, and that there are differences in potato varieties contrary to what BCVMC believes, Mr. Harris said.
The July hearing, which lasted three-and-a-half days, brought Washington potato growers, industry experts and economists before the CITT. Through attorneys working on its behalf, the U.S. contingent presented the Canadian tribunal with historical, scientific and economic evidence that ultimately resulted in the British Columbia Vegetable Marketing Commission conceding that "dumping of red, yellow and exotic potatoes has not taken place and that those varieties should be removed from the dumping order," according to Mr. Harris.
Anti-dumping duties have been levied on Washington potatoes for 21 years, and the BCVMC had sought a continuance of the duties. Mr. Harris and the Washington industry maintain that the entire dumping order be removed on white and Russet varieties as well.
It is anticipated that CITT will render a decision Sept. 12.
The WSPC case presented in Vancouver included testimony presented by Joseph Guenthner, an agricultural economist from the University of Idaho, that fresh potato profitability has historically followed a six-year cycle in which some years show a profit, some are a loss and some barely break even.
Economic evidence presented by Nick Young, an agricultural economist and president of Promar International, revealed that Washington potato exports to British Columbia typically increase only when prices are up.
The data gathered by Mr. Young contradicted the B.C. growers' claims that the province is a dumping ground for low-priced U.S. potatoes that cannot go anywhere else. Mr. Young also found that even in the lowest price cycle for potatoes, price returns for British Columbia potato growers are considerable.
In a statement concerning the long-endured issue, Mr. Harris said, The dumping duties that have been put in place have only protected Canadian growers by supporting them with an artificial price floor, discouraging them from seeking new means to increase quality and marketability of their own product.
Mr. Harris added, Our case was clearly the most substantial. It was interesting to listen to the detailed evidence about our industry and fun to watch the attorneys cross swords before the Tribunal.
Washington growers offering evidence included Allen Floyd from Othello, Jack Wallace from Skagit Valley, Del Christensen from Mattawa and Dennis Conley, a Moses Lake, WA, consultant.
Representing the state were international trade and customs attorneys Joel Junker of Seattle and Darrel Pearson of Gottleib and Pearson in Toronto.
By seeking a total of over 30 years of protection, Mr. Junker said that the B.C. growers reminded him of a quote from a British politician, They want kinder capitalism, a gentler market economy and an air conditioned jungle.
The CITT panel, consisting of professionals in business, law and economics, was very intent in learning the truth about how the North American potato industry functions with regard to marketing, supply, demand and price, and that there are differences in potato varieties contrary to what BCVMC believes, Mr. Harris said.
