Duties on Mexican Vegetable and Fruit Imports Could Still Be Possible, USTR Says
U.S. Trade Representative Robert Lighthizer told lawmakers from Georgia that he will be looking to see if there are remedies for combating “any trade distorting policies that may be contributing to unfair pricing in the U.S. market” for seasonal and perishable products, examining the Trade Act of 1974 and “other trade laws.” The Trade Act of 1974, which includes the recently used sections 201 and 301, gives the president wide leeway to deny preferential tariff treatment to any product, and to add an additional duty of up to 50 percent on any product for significant drug producing or drug transit countries. It also authorizes safeguards, which can be up to 50 percent duties on a surge of imports that is damaging domestic industry.
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Generally, antidumping law has barred antidumping cases against blueberries, strawberries, avocados and the like because a majority of producers would have to complain about Mexico's prices, and only Florida and Georgia growers are affected by competition with Mexico.
The USTR, in a letter dated Jan. 9, told the Georgia delegation that he will ask growers and agricultural agencies to compile documentation on trade distorting policies, and, within 90 days of congressional approval of the U.S.-Mexico-Canada Agreement, the Commerce Department, Agriculture Department and USTR will hold field hearings in Florida and Georgia “to solicit feedback on how the Administration can better support these producers and redress unfair harm.”
He said that USTR may also request that the International Trade Commission help monitor imports of perishable goods, but said that he realizes that similar monitoring in the past was ineffective without any enforcement. He said that the Commerce Department will, “in appropriate circumstances,” self-initiate an antidumping or countervailing duty case.
Rep. Austin Scott, R-Ga., responded to the letter by saying, “For years, Georgia’s producers have struggled to compete with unfair trade practices, like the dumping of foreign-subsidized fresh fruits and vegetables into U.S. markets well below the cost of production,” and that he's thankful that Lighthizer and President Donald Trump are addressing the issue.