Mexico restores tariff on Northwest apples

WENATCHEE – Mexico has once again imposed a tariff on Red and Golden Delicious apples from Northwest growers.

In May, Mexico temporarily ended a 47 percent anti-dumping tariff on the apples, imposed since August 2002. But it continued to investigate allegations that Northwest shippers sold apples in Mexico for less than they were sold in the United States in 1996.

As a result of that investigation, Mexico imposed a 45 percent tariff on many exporters in the region, effective Sept. 29.

“It’s pretty disappointing,” said Jim Archer, manager of Northwest Fruit Exporters, a nonprofit that manages apple and cherry export programs for about 85 packers and shippers in Washington, Oregon and Idaho.

As part of a decision announced last week, two companies were assigned individual duty rates, and one company, Price Cold Storage and Packing Co. of Yakima, was granted tariff-free status.

An 11 percent tariff was assigned to Allen Brothers Inc. of Yakima, and a 2 percent tariff was assigned to Zirkle Fruit Co., also of Yakima.

Based on those companies’ individual filings, the Mexican Ministry of Economy determined that they were entitled to individual rates, rather than the 45 percent tariff, Archer said.

As part of a separate agreement, the Northwest Horticultural Council said five other companies – Washington Export, LLC; Borton & Sons Inc.; Evans Fruit Co. Inc.; C. M. Holtzinger Fruit Co.; and Washington Fruit & Produce Co. – will be subject to their own anti-dumping duties agreed to with Mexico.

The 45 percent duty will not apply to those companies, either.

Apple exports to Mexico are dominated by the two Delicious varieties. The country had been Washington state’s largest foreign export market for apples until the tariff was enacted in 2002.

The tariff was to have been lifted Feb. 28 as part of an agreement between the Mexican Ministry of Economy and the Yakima-based Northwest Fruit Exporters. However, a Mexican court placed a temporary injunction on the deal.

Meanwhile, Mexico has expanded its investigation to the period from Jan. 1, 2004, through June 30, 2005 and is inviting shippers to supply information for those 18 months, said Fred Scarlett, assistant manager of Northwest Fruit Exporters.

Mexico will announce a final determination in several months, he said.

Washington state produces about half of all U.S. apples. Apples are the state’s most valuable agricultural commodity, worth about $1.15 billion a year. Growers have estimated the 2005 harvest at just under 90 million boxes, down from the record 103 million boxes harvested in 2004.