Apples are harvested at a Mexican orchard. Apples are harvested at a Mexican orchard.

US dumping apples, producers charge

Predatory pricing said to be hurting Mexican growers

Apples grown in the United States are often sold at lower prices than those grown in Mexico, frustrating farmers who believe they are faced with an uneven playing field.

ADVERTISEMENT

Local producers have accused the U.S. of dumping the product on the Mexican market, hurting domestic agriculture and undermining their efforts to increase production.

While Mexico doesn’t grow enough apples to satisfy domestic demand, a representative of the national apple growers’ association told the newspaper Milenio that the industry opposes predatory pricing that adversely affects Mexican growers.

Ricardo Márquez said that Mexico imports around 300,000 tonnes of U.S. grown apples per year and the quantity is growing despite greater investment in the sector and an improvement in technologies aimed at increasing yields.

Oversupply is particularly damaging to local producers.

He said the growers’ association has lodged claims with authorities in relation to U.S. dumping at prices that undercut the locally grown product.

“We have fought and asked the government for equality so that imports are not carried out under unfair and advantageous conditions that directly affect Mexican apple producers,” Márquez said.

ADVERTISEMENT

The Economy Secretariat took two years to investigate a dumping complaint made in 2014 but an import duty of up to 21% was finally introduced in January 2016.

However, it only lasted six months before being removed after an anti-dumping probe determined that damage caused by the imported apples to domestic production was not sufficient to tax them.

Ricardo Márquez disagrees, saying that along with a rise in the value of the dollar the removal of the tariff has led to renewed instability in the industry.

While the vast majority of imported apples come from the U.S., it isn’t the only country with which Mexico competes.

The president of the Coahuila branch of the growers’ association said that apples from New Zealand and Chile also arrive during Mexico’s harvest season, increasing the impact on local producers.

“We ask that a quarantine be respected . . . that after a harvest they allow two months before they start to send apples to Mexico,” José Recio Valdez said.

Some 700,000 tonnes of apples are produced annually in Mexico, mainly in the northern states of Chihuahua, Coahuila and Durango, generating an annual 4-billion-peso economic spillover, Márquez said.

The mechanism for settling disputes related to subsidies and dumping complaints is one of the most contentious issues in ongoing NAFTA renegotiation talks.

Source: Milenio (sp)

Stories from our archives that you might enjoy

  • Ron Almstead

    There are many unfavorable trade practices between the countries, and many favorable. This can be seen if you google research reports of both countries. Export terms under NAFTA favor export from the US to Mexico of agricultural staple crops, and favor Mexico in the export of seasonal crops. It is misleading to ONLY focus on ONE crop, in this case apples. Naturally an exporter of a given crop in EITHER country is going to cry foul if they are suffering, but that is why the trade re-negotiations are a good thing and should be applauded instead of used as a criticism of President Trump’s desire to re-negotiate unfair aspects, just as Mexico wishes to re-negotiate unfair aspects.

    • Mike S

      Trade agreements like NAFTA are very complicated and require ongoing adjustments and constant adjudications for violations; there are provisions for that. Over the years it is probably wise to revisit them and tweak them. What Trump said during his campaign was he was going to totally revoke NAFTA and called it the worst trade agreement he had ever seen. He proposed high tariffs and a wall. Trump doesn’t read so we know he has never read it. He browbeat Ford into pulling out of a small car plant they were going to build in Mexico and crowed about that saving 3000 jobs. Lots of parts and machinery for that plant were going to be built in the US and who knows- maybe some of those Mexican Ford workers would pool some wages and buy a F150 pickup made in the US. Now Ford has announced that plant will be built in China with no US parts and those workers buy NOTHING made in the US. The man is a menace and an ignoramus.

      • Ron Almstead

        Your nastiness, name-calling, and hated of Trump negate any positive influence you might have had with your distortion of the facts and false assumptions. How many multi-million dollar international trade deals have you negotiated, versus Trump? I knew him while I had an architectural office in Manhattan. I would trust his experience over your opinion any day.

        • Mike S

          So you were good friends with Trump. I have not negotiated any international trade deals and neither have you or Trump. I do read a lot about NAFTA and its history and provisions. Trump has shown over and over again his ignorance of NAFTA and trade in general. Most of what he said about NAFTA during his campaign was gross exaggerations and lies or ignorance. It will not be revoked. I’m telling it like it is about the conman and I know well his “true believes” will be offended. Trump should stick with reality TV, beauty pageants, celebrity golf tournaments, bankruptcies he makes money on, and suing people. Trump University is Trump in a nutshell.

  • Fred Jones

    In Merida shopping at Soriana’s en Altabrisa.

    Washington State red delicious apples were .59 cents per pound and avocados were about .30 cents each.

    In Tenn at Wal-Mart; Washington State red delicious are $1.49 per pound and today at Aldi’s in Tenn avocados are $1.99 each.

    The same higher prices in the States applies to Blue Cheese and many other food commodities.

    I think the higher prices in the States are due to the greed of American business owners.

  • DeplorableVI

    How do you like them apples?

FreeCurrencyRates.com
ADVERTISEMENT