The Florida winter strawberry industry recently scored a pivotal win at the United States International Trade Commission (ITC). Following a January petition for investigation by the Sunshine State’s Strawberry Growers for Fair Trade (SGFT) coalition, the government agency confirmed that American producers sustained preliminary injury as a result of unfairly priced Mexican strawberry imports.

Daniel B. Pickard, head of Buchanan Ingersoll & Rooney's International Trade and National Security practice and lead counsel for SGFT, explained to FreshFruitPortal.com that this development has been key in confirming the antidumping aspect of the case.

"We argued that winter strawberries are a distinct product. We argued that the eastern United States was a separate regional market, and also argued in the alternative, even if it's not a regional market, even if it's not defined just to be winter strawberries, the Mexican imports are still injuring the domestic industry," Pickard said of the case’s strategy.

He said the commission found Mexican winter strawberry volumes remained significant nationwide. Furthermore, their market share grew by more than 10 percent during the investigation period, while lower-priced imports contributed to a cost-price squeeze for US growers.

Next milestones to raise the stakes for winter strawberry case

The expert said the margins cited in the petition were an estimated 18 percent, but that there’s room for growth.

"We've got every reason to believe that they are going to be very significant margins," he noted.

Pickard also indicated that retroactive levies remain under consideration.

"All options are on the table. I think it is likely that we will include a critical circumstances determination, which would result in retroactive application of the antidumping duties. No final decision has been made, but it is likely," he explained.

While retailers and importers have argued that Florida winter strawberry production alone cannot meet winter demand, Pickard said the commission addressed that concern by evaluating the entire national strawberry market.

"Even when we look at it on a national basis, the volume of Mexican imports is so large, and they're increasing their market share at such low prices that even if you look at all the entire winter strawberry market, imports from Mexico are still injuring," the counsel said.

In the final phase, petitioners intend to argue that the evidence becomes even stronger when viewed through a regional or winter production lens, Pickard explained.

The Department of Commerce expects to issue its preliminary antidumping determination around August 18. 

Source: Freshfruitportal