Lemon Juice from Argentina and Mexico

134 Pages·2013·0.6 MB·English

by  Amy Sherman

Lemon Juice From Argentina and Mexico
Investigation Nos. 731-TA-1105-1106 (Review)
Publication 4418 July 2013
U.S. International Trade Commission
Washington, DC 20436
U.S. International Trade Commission
COMMISSIONERS

Irving A. Williamson, Chairman
Daniel R. Pearson
Shara L. Aranoff
Dean A. Pinkert
David S. Johanson
Meredith M. Broadbent
Robert B. Koopman
Director, Office of Operations
Staff assigned
Amy Sherman, Investigator
Katherine Baldwin, Industry Analyst
Amelia Preece, Economist
Mary Klir, Accountant
Charles St. Charles, Attorney
Elizabeth Haines, Supervisory Investigator
Special assistance from
Lita David-Harris, Statistician
Darlene Smith, Statistical Assistant
Address all communications to
Secretary to the Commission
United States International Trade Commission
Washington, DC 20436
U.S. International Trade Commission
Washington, DC 20436
www.usitc.gov
Lemon Juice From Argentina and Mexico
Investigation Nos. 731-TA-1105-1106 (Review)
Publication 4418 July 2013

CONTENTS
Page
Determinations ................................................................. 1
Views of the Commission ......................................................... 3
Additional and Dissenting Views of Commissioner Daniel R. Pearson.................... 29
Part I: Introduction ............................................................ I-1
Background .................................................................. I-1
The original investigations ................................................... I-2
Summary data ............................................................. I-2
Previous and related investigations................................................ I-2
Statutory criteria and organization of the report ...................................... I-6
Statutory criteria ........................................................... I-6
Organization of the report .................................................... I-7
Commerce’s reviews ........................................................... I-8
Administrative reviews ...................................................... I-8
Five-year reviews .......................................................... I-8
The subject merchandise ........................................................ I-9
Commerce’s scope .......................................................... I-9
Tariff treatment ............................................................ I-9
The product .................................................................. I-9
Physical characteristics and uses ............................................... I-9
Manufacturing process ...................................................... I-11
Domestic like product issues .................................................... I-13
U.S. market participants ........................................................ I-13
U.S. processors ............................................................ I-13
U.S. importers ............................................................. I-14
U.S. purchasers ............................................................ I-15
Apparent U.S. consumption ..................................................... I-15
U.S. market shares ............................................................ I-17
Part II: Supply and demand information ........................................... II-1
U.S. market characteristics ...................................................... II-1
Channels of distribution ........................................................ II-1
Geographic distribution ........................................................ II-2
Supply and demand considerations................................................ II-3
U.S. supply ............................................................... II-3
U.S. demand .............................................................. II-9
Substitutability issues .......................................................... II-12
Knowledge of country sources ................................................ II-13
Factors affecting purchasing decisions .......................................... II-13
Comparison of domestic products, subject imports, and nonsubject imports ............. II-18
Elasticity estimates ............................................................ II-22
U.S. supply elasticity ........................................................ II-22
U.S. demand elasticity ....................................................... II-23
Substitution elasticity ....................................................... II-23
i
CONTENTS
Page
Part III: Condition of the U.S. industry ............................................ III-1
Overview.................................................................... III-1
Changes experienced in operations ............................................. III-1
Anticipated changes in operations .............................................. III-2
U.S. processors’ capacity, production, and capacity utilization .......................... III-2
Constraints on capacity ...................................................... III-3
U.S. processors’ shipments ...................................................... III-3
U.S. processors’ inventories ..................................................... III-3
U.S. processors’ imports and purchases ............................................ III-4
U.S. processors’ employment, wages, and productivity ................................ III-4
Financial experience of the U.S. processors ......................................... III-5
Introduction ............................................................... III-5
Operations on lemon juice .................................................... III-5
Capital expenditures ........................................................ III-6
Assets .................................................................... III-6
Part IV: U.S. imports and the foreign industry ...................................... IV-1
U.S. imports ................................................................. IV-1
Overview ................................................................. IV-1
Imports from subject and nonsubject countries .................................... IV-1
U.S. importers’ imports subsequent to December 31, 2012 ............................. IV-3
U.S. importers’ inventories ...................................................... IV-3
Cumulation considerations ...................................................... IV-4
The industry in Argentina ....................................................... IV-6
Overview ................................................................. IV-6
Lemon juice operations ...................................................... IV-7
The industry in Mexico ......................................................... IV-9
Overview ................................................................. IV-9
Lemon juice operations ...................................................... IV-10
Antidumping and countervailing duty investigations in third-country markets .............. IV-11
Global market ................................................................ IV-11
Global supply.............................................................. IV-11
Global demand ............................................................. IV-11
Part V: Pricing data ............................................................ V-1
Factors affecting price ......................................................... V-1
Raw material costs .......................................................... V-1
U.S. inland transportation costs ................................................ V-1
Pricing practices .............................................................. V-2
Pricing methods ............................................................ V-2
Sales terms and discounts .................................................... V-2
Price leadership ............................................................ V-3
ii
CONTENTS
Page
Part V: Pricing data–Continued
Price data ................................................................... V-3
Price trends ............................................................... V-4
Price comparisons .......................................................... V-5
Purchaser perceptions of relative price trends ..................................... V-6
Appendixes
A. Federal Register notices....................................................... A-1
B. Hearing witnesses ............................................................ B-1
C. Summary data............................................................... C-1
D. Responses of U.S. processors, U.S. importers, U.S. purchasers, and foreign producers
concerning the significance of the suspension agreements and the likely effects of
termination ................................................................. D-1
E. Normal values assigned under the suspension agreements ............................ E-1
Note.--Information that would reveal confidential operations of individual concerns may not be published
and therefore has been deleted from this report. Such deletions are indicated by asterisks.
iii

UNITED STATES INTERNATIONAL TRADE COMMISSION

Investigation Nos. 731-TA-1105-1106 (Review)

LEMON JUICE FROM ARGENTINA AND MEXICO

DETERMINATION

On the basis of the record1 developed in the subject five-year reviews, the United States
International Trade Commission (Commission) determines, pursuant to section 751(c) of the Tariff Act of
1930 (19 U.S.C. ' 1675(c)), that termination of the suspended antidumping duty investigation on lemon
juice from Argentina would be likely to lead to continuation or recurrence of material injury to an industry
in the United States within a reasonably foreseeable time.2 The Commission also determines that
termination of the suspended antidumping duty investigation on lemon juice from Mexico would not be
likely to lead to continuation or recurrence of material injury to an industry in the United States within a
reasonably foreseeable time.

BACKGROUND

The Commission instituted these reviews on August 1, 2012 (77 FR 45653) and determined on
November 5, 2012 that it would conduct full reviews (77 FR 67833, November 14, 2012). Notice of the
scheduling of the Commission=s reviews and of a public hearing to be held in connection therewith was
given by posting copies of the notice in the Office of the Secretary, U.S. International Trade Commission,
Washington, DC, and by publishing the notice in the Federal Register on December 5, 2012 (77 FR 72384).
The hearing was held in Washington, DC, on May 16, 2013, and all persons who requested the opportunity
were permitted to appear in person or by counsel.

1 The record is defined in sec. 207.2(f) of the Commission=s Rules of Practice and Procedure (19 CFR '
207.2(f)).
2 Commissioner Daniel R. Pearson made a negative determination with respect to the suspended investigation
on lemon juice from Argentina. 

1