June 23, 1999

The International Trade Commission is investigating imports from China of concentrated apple juice to determine if the imports are economically injuring the U.S. apple industry. The U.S. Apple Association is seeking relief from what are claimed to be below cost imports. The USITC will determine if there is a "reasonable indication" that the U.S. apple industry is being economically injured by imports of concentrated apple juice from China. The action came at the request of the U.S. Apple Association.

Kraig R. Naasz, association president and chief executive officer, said, "A flood of cheap apple juice concentrate imports from China is drowning much of our industry in a sea of red ink." The association wants import duties imposed to offset the amount of economic injury from below-cost imports.

The petition, filed jointly with the USITC and the Department of Commerce, alleges China is selling apple juice concentrate in the US market at prices 91% less than its cost of production. If the Commerce Department and the USITC agree with the dumping allegations, tariffs may be levied against Chinese concentrate imports.

US apple juice concentrate imports from China increased by more than 1,200% between 1995 and 1998, from 3,000t in 1995 to 40,000t in 1998, according to Commerce Department figures. During that same time, the average price for apple juice concentrate imports from China declined by more than 50%, from US$7.65 per gallon in 1995 to US$3.57 per gallon in 1998. China's share of the US market increased from 1% to 18% during that same time period.

The USITC must reach a preliminary decision within 45 days, or by July 22, unless the Commerce Department extends the deadline.