Jim Whitney Economics 311
 
Trade dispute case study: Pasta from Italy and Turkey
International Trade Commission case: 731-TA-734-735 (1996)

Complaint: that an industry in the United States is materially injured or threatened with material injury by reason of imports of certain pasta from Italy and Turkey that have been sold in the United States at less than fair value ("LTFV").

LTFV information: The dumping margins range from de minimis to 46.67 percent for subject imports from Italy and exceed 60 percent for subject imports from Turkey.

Import information: The share of all U.S. consumption held by subject imports steadily increased from 9.3 percent in 1993 to 12.2 percent in 1995.

Domestic industry information:
    Prices: Prices rose somewhat throughout the period of investigation (for example, domestic price increases for sales to grocery stores ranged from 3.8 to 17.1 percent over the period of investigation).
    Production: Domestic production of dry pasta increased from 2.441 billion pounds in 1993 to 2.617 billion pounds in 1994, and then decreased to 2.589 billion pounds in 1995.
    Profits: Despite the overall increase in sales value, the operating income and gross profits of the domestic industry deteriorated, with operating losses at the end of the period. Gross profits for non-egg pasta thus decreased by *** percent compared with *** percent for all dry pasta. Operating income continued to show a *** decline in the non-egg pasta sector (down *** percent) compared with all dry pasta (down *** percent). In 1995, production of non-egg pasta thus generated an operating loss of ***, or *** percent of net sales, whereas production of all dry pasta showed a loss of ***, or *** percent of net sales. [Actual values were not reported, due to firm-specific confidentiality considerations.]