Vienna, VA. — The U.S. Department of Commerce announced today that Chinese apple juice concentrate exporters are expected to sell product at unfair prices in the United States if the current apple juice concentrate antidumping order is revoked. The decision, based in part on information submitted by the U.S. Apple Association (USApple), is the first step in continuing import duties on non-frozen apple juice concentrate (NFAJC) from China and represents a victory for domestic concentrate producers and U.S. apple growers.

The Commerce Department's final ruling follows a four month review to determine whether the current antidumping order, applied to certain imports of apple juice concentrate in June 2000, should be lifted. USApple has been leading industry efforts to maintain the dumping order. By fighting to maintain the dumping order for the two remaining domestic commercial concentrate producers, Naumes Concentrates, Inc., Medford, Oregon and Tree Top, Inc., Selah, Wash., USApple's goal is to preserve important markets for U.S. juice apples, which represent an important source of revenue for apple growers.

"The government reviewed the data we presented and agreed with our conclusion that without the antidumping order in place, the previous unfair pricing practices would return," said USApple President and CEO Nancy Foster. "By continuing the order, U.S. apple juice concentrate producers are more likely to remain in business and U.S. apple growers will retain this important market for their fruit."

Antidumping orders such as the NFAJC order are required to be reviewed every five years to determine if it is still required. The order was established in 2000 when the Department of Commerce determined that the sales of NFAJC from China "were made at less than fair value." As a result, import duties ranging from 3.83 percent to 51.74 percent were imposed on eligible Chinese exporters.

Final action on extending the order now rests with the International Trade Commission (ITC), which must determine that the dumping behavior harms the domestic concentrate industry.

"USApple calls on the ITC to continue the order to prevent further economic harm in the U.S. apple industry," said Foster.

USApple submitted substantial comments to the Commerce Department and the ITC that show how a resumption of the previous predatory pricing procedures in the NFAJC market could well lead to the extinction of the domestic concentrate industry.

"The antidumping margins in place have been successful in stabilizing the U.S. apple juice concentrate market by shutting some Chinese exporters out of the U.S. market," noted Foster. "But without this protection, these firms would be free to enter the U.S. market and compete in a predatory, low-price manner for market share. Because apple juice concentrate is a commodity, lowering prices is the only tool available to differentiate product and gain market share. Removing the antidumping duties would encourage firms to offer product in the U.S. market at unfair prices, leading to the collapse of the concentrate market."

There are four clear indicators that suggest the removal of the antidumping order would pose a significant and imminent threat to the domestic apple juice concentrate market: China's increasing production capacity; lack of juice demand in China; trade barriers in other markets; and previous antidumping behavior. Because of these factors, USApple argued it is virtually assured that the removal of the order would result in the Chinese exporters again offering concentrate at less than fair prices.

Such unfair pricing practices would put the future of domestic commercial concentrate producers in jeopardy and have a negative impact on all U.S. apple growers by removing this possible market for juice apples.

The ITC is schedule to reach its decision in mid-September.

The U.S. Apple Association (USApple) is the national trade association representing all segments of the apple industry. Members include 40 state and regional apple associations representing the 7,500 apple growers throughout the country, as well as more than 300 individual firms involved in the apple business. USApple's mission is to provide the means for all segments of the U.S. apple industry to join in appropriate collective efforts to profitably produce and market apples and apple products. The text of this release can be downloaded from the News Releases section of USApple's Media Web site, at http://www.usapple.org/media/newsreleases/index.cfm.