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- Canada Investigates Tomato
Dumping from United States
- By Greg Brown
Associate Editor
- The Canada Customs and Revenue Agency (CCRA) announced in November the initiation of an investigation into the alleged injurious dumping of fresh tomatoes from the United States. This new investigation is the latest chapter in a nine-month trade dispute between growers in the United States and Canada.
The CCRA started the investigation after receiving a complaint filed by the Canadian Tomato Trade Alliance (CTTA) of Vancouver, British Columbia. The CTTA alleged that the dumping of fresh tomatoes is causing harm to Canadian production in the form of reduced income and lost incentive to expand and upgrade production facilities in a growing market.
The investigation responds to a complaint filed by Canadian tomato grower members of the CTTA that U.S. producers are dumping their product in Canada at prices below fair market value. In their complaint, the Canadian growers assert that the alleged dumping of tomatoes threatens Canadian investments and jobs. The investigation excludes processing tomatoes.
The CCRA’s analysis of the Canadian industry’s complaint and other additional information indicates that “there is evidence that the goods have been dumped and there is a reasonable indication that the dumping has caused injury or is threatening to cause injury to the domestic industry in Canada,” according to the tomato trade association.
“The dumping of U.S.-produced tomatoes is putting Canadian growers and jobs at risk,” said Kevin Doran, co-chair of the Canadian Tomato Trade Alliance and vice president of British Columbia-based BC Hot House Foods Inc.
“We’re continuing our call for the vigorous enforcement of Canada’s trade laws,” said Doran. “We agree with the CCRA’s decision to initiate this investigation and look forward to the preliminary determination.”
Canada’s greenhouse vegetable industry contributes $3 billion a year and 17,000 jobs to the Canadian economy. The major centers of greenhouse vegetable production are in Ontario, British Columbia and Quebec.
“We applaud the CCRA for their thoroughness in reviewing our complaint and look forward to further cooperating with them as the investigation proceeds,” said Denton Hoffman, co-chair of the CTTA and general manager of the Ontario Greenhouse Vegetable Growers.
Now, the Canadian International Trade Tribunal has started a preliminary inquiry into whether the imports are harming the Canadian producers. They will issue a decision within 60 days. While the tribunal is examining the question of injury, the CCRA will investigate the allegation of dumping, making a preliminary decision within 90 days.
The charges follow an earlier U.S. decision on the Canadian dumping of hothouse tomatoes in the domestic market. Announced in early October, the International Trade Commission (ITC) and the Commerce Department base the finding on over six months of study.
The dispute began nearly nine months ago when six American firms filed petitions with the ITC and Commerce Department on March 28 charging the Canadian greenhouse tomato industry with dumping products below cost.
The ITC voted in early May that the U.S. greenhouse tomato industry is materially injured by imports of greenhouse tomatoes from Canada, allegedly sold in the United States at less than fair value.
Announced in October, preliminary dumping margins ranged from less than 3% to nearly 51%, depending on the offender. The Commerce Department will make its final determination by Dec. 17.
The Canadian investigation’s announcement signals a departure in the response of the Canadian greenhouse tomato industry. According to reports, Canadian greenhouse tomato growers had previously considered a suspension agreement similar to Mexico’s fresh tomato agreement with Florida and California.
For more information view the Statement of Reasons on the CCRA Web site, www.ccra-adrc.gc.ca/sima
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