FLORIDA FARMERS INC.
“ A STRUGGLE FOR SURVIVAL”

WHAT IS DUMPING?

Simply put, dumping occurs when goods imported into the United States are sold at less than the fair market value of those goods in the exporting country. Federal statutes are in place all over the world. And dumping has been internationally recognized as an unfair trade practice.

The antidumping statute sets forth procedures for determining if dumping exists and what remedies should be applied. The procedure to determine dumping begins with a petition to the Secretary of Commerce and the International Trade Commission (ITC) requesting an investigation as to whether a particular product is, or is likely to be, sold in the United States at less than fair market value.

A factual investigation is conducted into the situation surrounding the dumping issue. Commerce then determines if there is reason to believe or suspect that the exporter´s sales price is less than the foreign market value. Upon the dumping finding, a special antidumping duty is to be imposed upon all goods for which the sales price is less than the foreign market value. The North American Free Trade Agreement (NAFTA) upholds the antidumping statutes of each country and the right for a country to enforce these statutes.

The fallout of dumping for the Florida farmers is a bitter lesson in economics. Through a concerted market penetration strategy over more than three decades by Mexico, the domestic industry faces economic disaster. It is a struggle for survival.