Sunkist asks for trade study on oranges and lemons
Sunkist asks for trade study on oranges and lemons
WASHINGTON -- A congressional panel has asked the U.S. International Trade Commission, for the first time, to investigate and compare between U.S. and foreign suppliers the costs of producing Navel oranges and lemons.
"It has come to the attention of the Committee on Ways & Means that certain U.S. citrus growers are concerned about the competitive conditions affecting certain segments of their industry," Rep. William Thomas (R-CA), chairman of the House Ways & Means Committee, wrote in a letter to the trade commission.
Sunkist Growers Inc. in Sherman Oaks, CA, asked the independent agency to gather data because California growers always assumed that their production costs were higher than other countries, such as China or South Africa, said Mike Wootton of Sunkist. "But we've never had quantifiable data that show that, he said.
There have been smaller, regional studies, but nothing comprehensive.
Other countries may have lower labor costs, Mr. Wootton said, but they may have to pay more for other production items such as fertilizers and pesticides. "We don't know. This study will be helpful in terms of finding out how low some countries can price a carton of lemons or Navel oranges and still make a profit, he said.
For the study, ITC plans to provide an overview of the global market for oranges and lemons for the fresh market, including profiles of these commodities in the United States and in principal foreign producer countries, such as Argentina, Australia, Chile, China, Mexico, Spain and South Africa.
The report will include an analysis of the strengths and weaknesses of the U.S. market with foreign competitors in areas such as production costs, technology, government programs, exchange rates, and pricing and marketing regimes.
While data collection has been used in the past to gear up for an anti-dumping trade action, Mr. Wootton said that he reassured competitors that it was not the case. "This is not an adversarial step, he said, adding that the information will become public information and shared with everyone.
As for whether the study may turn up some bad news for California growers, Mr. Wootton said, "We are still in the immediate proximity of the biggest consumer market: the U.S.
ITC is planning a public hearing on Feb. 7, and plans to report back to the committee on its findings by July 5.
"It has come to the attention of the Committee on Ways & Means that certain U.S. citrus growers are concerned about the competitive conditions affecting certain segments of their industry," Rep. William Thomas (R-CA), chairman of the House Ways & Means Committee, wrote in a letter to the trade commission.
Sunkist Growers Inc. in Sherman Oaks, CA, asked the independent agency to gather data because California growers always assumed that their production costs were higher than other countries, such as China or South Africa, said Mike Wootton of Sunkist. "But we've never had quantifiable data that show that, he said.
There have been smaller, regional studies, but nothing comprehensive.
Other countries may have lower labor costs, Mr. Wootton said, but they may have to pay more for other production items such as fertilizers and pesticides. "We don't know. This study will be helpful in terms of finding out how low some countries can price a carton of lemons or Navel oranges and still make a profit, he said.
For the study, ITC plans to provide an overview of the global market for oranges and lemons for the fresh market, including profiles of these commodities in the United States and in principal foreign producer countries, such as Argentina, Australia, Chile, China, Mexico, Spain and South Africa.
The report will include an analysis of the strengths and weaknesses of the U.S. market with foreign competitors in areas such as production costs, technology, government programs, exchange rates, and pricing and marketing regimes.
While data collection has been used in the past to gear up for an anti-dumping trade action, Mr. Wootton said that he reassured competitors that it was not the case. "This is not an adversarial step, he said, adding that the information will become public information and shared with everyone.
As for whether the study may turn up some bad news for California growers, Mr. Wootton said, "We are still in the immediate proximity of the biggest consumer market: the U.S.
ITC is planning a public hearing on Feb. 7, and plans to report back to the committee on its findings by July 5.
