US Citrus Group Starts Appeal On Brazil Antidumping Ruling
17/05/2012 12:00
NEW YORK (Dow Jones)--A major Florida citrus growers' group on Monday said it has started the process to appeal a ruling that revoked an antidumping duty on orange juice from Brazil, the world's largest producer.
In March, the U.S. International Trade Commission voted to remove the duty, saying its decision "is not likely to lead to the continuation or recurrence of material injury to an industry in the United States."
But Florida Citrus Mutual is challenging the order.
"We continue to believe that the ITC made the wrong decision in this case for a number of reasons," said Michael Sparks, executive vice president and chief executive of the group, in a statement. "There's been extreme volatility in the marketplace since the revocation of the order, providing clear proof that the order was doing what it was supposed to do--make the Brazilian processors play by the rules."
Florida produces around three-quarters of the U.S. orange-juice supply. Imports cover the rest, and Brazilian juice accounted for half of those shipments last year.
Brazilian orange juice came under fire earlier this year when traces of carbendazim, a fungicide whose use isn't permitted on oranges in the U.S., was detected on shipments from the country.
The scare sent prices of frozen orange juice concentrate on ICE Futures U.S. to a record high of $2.2695 a pound on Jan. 23.
But as safety concerns eased following testing by the U.S. Food and Drug Administration, prices fell back. Futures for July delivery prices settled Monday at $1.1660 a pound, down 4.9% on the day and down nearly 49% since the record high.
The fungicide issue and its impact on demand for the beverage are among the points that Florida Citrus Mutual is planning to include in its appeal, the group said.
Under U.S. law, the antidumping duty is reviewed every five years. For it to continue, the Commerce Department must show that dumping occurred and the International Trade Commission panel must find that the practice poses a threat to U.S. industry.
Last August, the Commerce Department found that some Brazilian orange-juice companies were selling juice in the U.S. below the cost of production and said the antidumping duty shouldn't be revoked.
But the ITC panel ruled that the juice imports didn't pose a threat to U.S. industry.
In March, the U.S. International Trade Commission voted to remove the duty, saying its decision "is not likely to lead to the continuation or recurrence of material injury to an industry in the United States."
But Florida Citrus Mutual is challenging the order.
"We continue to believe that the ITC made the wrong decision in this case for a number of reasons," said Michael Sparks, executive vice president and chief executive of the group, in a statement. "There's been extreme volatility in the marketplace since the revocation of the order, providing clear proof that the order was doing what it was supposed to do--make the Brazilian processors play by the rules."
Florida produces around three-quarters of the U.S. orange-juice supply. Imports cover the rest, and Brazilian juice accounted for half of those shipments last year.
Brazilian orange juice came under fire earlier this year when traces of carbendazim, a fungicide whose use isn't permitted on oranges in the U.S., was detected on shipments from the country.
The scare sent prices of frozen orange juice concentrate on ICE Futures U.S. to a record high of $2.2695 a pound on Jan. 23.
But as safety concerns eased following testing by the U.S. Food and Drug Administration, prices fell back. Futures for July delivery prices settled Monday at $1.1660 a pound, down 4.9% on the day and down nearly 49% since the record high.
The fungicide issue and its impact on demand for the beverage are among the points that Florida Citrus Mutual is planning to include in its appeal, the group said.
Under U.S. law, the antidumping duty is reviewed every five years. For it to continue, the Commerce Department must show that dumping occurred and the International Trade Commission panel must find that the practice poses a threat to U.S. industry.
Last August, the Commerce Department found that some Brazilian orange-juice companies were selling juice in the U.S. below the cost of production and said the antidumping duty shouldn't be revoked.
But the ITC panel ruled that the juice imports didn't pose a threat to U.S. industry.
May 14, 2012, 5:24 p.m. ET
By Leslie Josephs
Source: online.wsj.com
By Leslie Josephs
Source: online.wsj.com
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