Jim Whitney | Economics 311 |
Complaint: According to the Florida Fruit & Vegetable Association, and others, fresh tomatoes are being imported into the United States from Mexico in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industries producing articles like or directly competitive with the imported articles.
Background:
--Following the implementation of NAFTA in January
1994, the U.S. began a process of eliminating its import restrictions on
agricultural products from Mexico.
--No assertion of any unfair trading practices is
made in this complaint.
Import information:
--The ratio of imports of fresh tomatoes to U.S.
production of fresh tomatoes (in quantity) rose irregularly from 23.5 percent
in 1991 to 41.7 percent in 1995.
--Mexico accounted for over 95 percent by volume
of U.S. imports of fresh tomatoes in 1995.
Domestic industry information:
Procedure: The International Trade Commission
sent questionnaires to 666 growers of tomatoes and/or bell peppers and
received usable data from 163 growers representing an estimated 57 percent
of 1995 U.S. harvested production of fresh tomatoes. The Commission also
utilized USDA data when such data were available.
Prices: For mature green tomatoes, 85 percent
U.S. #1 or better, large size, questionnaire respondents reported net free
on board. selling prices of $0.35 per pound in January 1993, $0.47 per
pound in January 1994, $0.40 per pound in January 1995, and $0.19 per pound
in January 1996. The quantity of tomatoes sold by the reporting firms in
January 1996, when prices were the lowest of the four January months, was
significantly higher than in any of the three previous January months.
The reverse was true for the same product for February of each of the same
four years. Questionnaire respondents reported per pound selling prices
of $0.21, $0.20, $0.29, and $0.30 for February 1993, 1994, 1995, and 1996;
February 1996 sales were the lowest of the four February months.
Production: According to USDA statistics,
production totaled 3.4 billion pounds in 1991, rose to 3.9 billion pounds
in 1992, then fell to 3.6 billion pounds in 1993, rose to 3.7 billion pounds
in 1994, and then fell again to 3.3 billion pounds in 1995. Shipment data
furnished by domestic growers in response to Commission questionnaires,
which are less comprehensive than USDA official production statistics,
show a significant increase in U.S. grower shipments during the period
1991-95, from 1.2 billion pounds to 1.6 billion pounds, or 30 percent.
Profits: The data show that a significant
number of growers operated at a loss throughout the period. The data also
show that domestic sales (in quantity) rose and that the dollar volume
of sales was relatively stable during the period. The data show that the
industry was least profitable in the 2 years (1994 and 1995) when domestic
sales were at their highest (in quantity). The percentage of firms reporting
losses was highest in 1992, when overall industry profits were highest.
Employment: The average number of contract
workers employed in grower establishments rose from 14,394 persons in 1991
to 18,867 in 1995. Similarly, the average number of salaried workers employed
in grower establishments rose from 8,685 in 1991 to 11,423 in 1995.