The Impact of the Andean Trade Preference Act Twelfth ... - USITC

U.S. production of fresh-market asparagus amounted to 141.4 million pounds in 2005, down7 percent from 152.4 million in 2004 but up by 18 percent from 119.4 million in 2003. 138Production value fell 26 percent from $185.5 million in 2004 to $137.9 million in 2005, butwas up 10 percent from 2003 to 2005. 139 The leading states producing fresh-marketasparagus were California (which sells nearly all of its production to the fresh market),Washington, and Michigan. The leading states producing asparagus for processing wereWashington and Michigan. Washington asparagus growers have sold more of theirproduction on the fresh market and less to processing in recent years following the closingof three asparagus processing plants in Washington since 2002. 140 Michigan asparagusgrowers also have sold more of their asparagus to the fresh market in recent years, but theyreport that lower prices for their asparagus for processing forces more asparagus to be soldto the fresh market, which is already supplied by imports. The lower asparagus prices aresaid to have resulted in many growers going out of business. 141 U.S. annual per capitaconsumption of fresh-market asparagus amounted to 1.2 pounds in 2005, up slightly from2004 but twice the per capita consumption in the early 1990s. 142 Per capita consumption ofcanned and frozen asparagus has been stagnant, at 0.2 and 0.1 pounds, respectively, for anumber of years. 143Historically, the season for U.S. production has differed substantially from that of mostimports from ATPA countries. Production in California typically starts in February, peaksin April, and continues through June. Production in Washington and Michigan starts in Apriland ends in July. About 70 percent of imports from Mexico in recent years entered duringJanuary-March, just prior to and at the start of the California season. The bulk of freshasparagus imports from ATPA countries enter during July through the following January,when overall U.S. production is low. In recent years, however, imports from ATPA countries(mainly Peru) have entered in larger amounts during most other months as well, but stillaccount for a fairly small market share in those months.According to recent USDA statistics, prices for California asparagus are often at a seasonallow level during January-March as domestic production increases. With U.S. productionhighest during the period of mid-February through mid-May and with supplies from Mexicoalso available, the price of fresh asparagus may approach a level at which it is not asprofitable for importers to sell foreign asparagus in the U.S. market, leading to a reductionin imports from Peru and other shippers.The impact of ATPA on U.S. consumers has been significant in that imports of Peruvianfresh-market asparagus, together with imports from Mexico and U.S. production, have138 USDA, National Agricultural Statistics Service, Vegetables, publication No. Vg 1-2 (06), Jan. 2006, p.35.139Ibid.140Don Brunell, President, Association of Washington Business, “Seneca Announcement LeavesWashington’s Asparagus Industry on Life Support,” June 4, 2004, found at http://www.awb.org/cgi-bin,retrieved May 24, 2005. According to industry officials, imports of fresh Peruvian asparagus “have closedU.S. canning operations.” See also John Bakker, Michigan Asparagus Advisory Board, written submission tothe Commission concerning inv. No. 332-352, Andean Trade Preference Act: Impact on U.S. Industries andConsumers and on Drug Crop Eradication and Crop Substitution, June 7, 2005.141 John Bakker, Michigan Asparagus Advisory Board, written submission to the Commission concerninginv. No. 332-352, Andean Trade Preference Act: Impact on U.S. Industries and Consumers and on DrugCrop Eradication and Crop Substitution, June 7, 2005.142USDA, Economic Research Service, Vegetables and Melons Outlook, publication No. VGS-314, Apr.20, 2006, Percap table 1.143 Ibid.3-12