Agency says peppers were dumped

Thursday, September 23, 2010

by SUSAN MANN

A whopping 99.4 per cent of the greenhouse bell peppers exported to Canada from The Netherlands last year were dumped, the Canada Border Services Agency has determined.

The Agency released the number Monday in its final determination statement of dumping. It’s expected to release a statement of reasons for its decision in 15 days.

Sabrina Mehes, Agency spokesperson, says by email additional details such as the volume of peppers dumped in Canada during 2009 and what the selling price actually was will be in the statement of reasons being released Oct. 5.

Mehes says dumping occurs when the export price of a product sold to a Canadian importer is less than its normal value. The normal value is generally based on the domestic selling prices of like goods in the exporting country or on the full cost of production and sale of the goods plus an amount for profits.

The Agency has revealed that the margin of dumping in this case was 193 per cent. The margin of dumping is determined by taking the product’s normal value and subtracting its export price, Mehes says. The difference is then expressed as a percentage of the export price. For example, if a product whose normal price is $11.41 is sold at an export price of $3.86, the dumping margin would be 193 per cent of the export price, or $7.45. (These numbers are examples only). 

George Gilvesy, general manager of the Ontario Greenhouse Vegetable Growers, says it’s almost unimaginable to comprehend that the dumping could be at this level. Lawyers for the greenhouse growers group are reviewing dumping records “and they believe this may be the highest level (of dumping) of any agricultural commodity on the books.”

Gilvesy adds they’re pleased the Agency “confirmed the level of dumping was significant.”

If another body, the Canadian International Trade Tribunal, finds that Canada’s industry has been damaged by the dumping then duties could be slapped on Dutch greenhouse bell peppers for five years. The Tribunal is conducting four days of hearings in Ottawa this week on the question of injury to Canada’s industry and will issue its findings by Oct. 19. The hearings began Monday and wrap up Thursday.

The Tribunal is a quasi-judicial body reporting to Parliament through the finance minister. It hears cases on dumped and subsidized imports, safeguard complaints, appeals of customs and excise tax rulings and complaints about federal government procurement. It also provides advice on other economic, trade and tariff matters when asked by the federal government.

Currently there is a provisional duty in place on Dutch greenhouse bell peppers that continues until Oct. 19.

Gilvesy says the Ontario growers group made its presentation to the Tribunal on Monday. The organization’s representatives spent the entire day on the witness stand. “We put forward our witness statements and this was an opportunity for them to cross-examine us.”

He adds the essence of what they told the Tribunal is “we feel we’ve been damaged and there has been significant injury. The Tribunal should find in favour of the Ontario or Canadian industry.”

Gilvesy says growers, marketers and other interested parties had to fill out questionnaires that included confidential financial information and he couldn’t make that public. The financial information will be used in the Tribunal’s analysis of injury.

Asked Tuesday how he felt the Tribunal hearing is going so far, Gilvesy declined to comment. He also declined to comment on the presentation made by Dutch representatives, who were on the witness stand all day Tuesday. BF