Trade investigation launched against Dutch pepper imports

Sunday, March 21, 2010

by BETTER FARMING STAFF

The Canadian Border Services Agency announced today it is investigating an allegation that Netherlands growers are dumping greenhouse bell peppers in Canada.

The investigation follows an Ontario Greenhouse Vegetable Growers complaint filed with the agency Jan. 29. “Dumping” occurs when products are exported a prices less than the cost of producing them.

The agency will release a statement of reasons for the investigation April 6 and provide a preliminary determination June 21. If the case proceeds, the Canadian International Trade Tribunal will determine whether to take trade action, such as imposing a countervail duty.

George Gilvesy, the Greenhouse Growers’ general manager, says a preliminary estimate of damage is $66 million in “income foregone” over the last three years. “It did a great deal of damage in the marketplace in 2009,” he says.

 “We expect that this investigation will confirm that dumping of product has occurred and allow for the imposition of anti-dumping measures,” states the marketing board’s chair, Len Roozen, in a news release.

In a document filed with the agency, the Greenhouse Growers identifies two Netherlands-based exporters, M. Levarht & Zonen B.V. and Greenery Produce B.V.

The document asserts that Dutch bell peppers exports to Canada increased by 30 per cent in 2009 compared to 2008. A price chart shows prices for Dutch peppers dropped to $2.74 per kilogram in 2009 from $3.14/kg in 2008.

The document explains that because peppers are perishable, they must be brought to market quickly and prices will fluctuate to what is necessary to clear the market: “With Dutch peppers being flown (and shipped) to Canada, and being offered at extremely low dumped prices, the Canadian market price is continually being disrupted.”

It further states that where one supermarket chain “is selling dumped Dutch peppers, competing supermarkets insist that Canadian product be priced to allow them to compete at the retail level.

“A single shipment from the Netherlands may thus dictate pricing for all OGVG product being cleared during the next few weeks.”

The provincial growers organization sounded the alarm about Dutch peppers in 2009. When greenhouse growers appealed to federal Agriculture Minister Gerry Ritz to pursue diplomatic avenues, Ritz recommended that the organization file a complaint with the border services agency.

In 2006, Ontario’s greenhouse pepper industry, the largest in the country, was valued at $166 million and the Canadian industry at $191 million. BF