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December 2005, World Apple Report Highlights

Sorry Saga of Mexican Apple Imports
This article traces the current Mexican antidumping action against U.S. Red Delicious and Golden Delicious apples to the failure of the Mexican apple industry to adequately prepare for freer trade under the North American Free Trade Agreement (NAFTA) which came into force in 1994.The Mexican apple industry has chosen the path of obstruction rather than of restructuring so it can compete on quality and productivity. The latest ruling by the Mexican government, by imposing differential antidumping duties on different firms, adds to the confusion. It creates additional uncertainty for U.S. exporters and Mexican importers, retailers and consumers.

Heavy Losses for Chile, New Zealand
Chilean exports of fresh apples to the U.S. for the February-August period of 2005 were $46.4 million (53.3%) lower than for the same period in 2004, while New Zealand exports to the U.S. were $27.5 million (41 percent) lower. New Zealand sales in 6 major European markets were down $ 36 million. Chilean sales to those European markets were up about $ 13 million, but average prices were 5% lower. Late season sales after August 2005 fared even worse as prices continued to fall.

The Mirage of Import Protection
This article discusses the many forms of import protection that countries have used to support domestic agricultural industries, including traditional tariffs, quotas and outright bans, sanitary and phytosanitary barriers, antidumping laws and "Buy Domestic" programs. Too often, the protected industry fails to use temporary forms of protection as an opportunity to enhance its long-term competitiveness. For survival in a global market, individual firms need to find a niche in which they have a unique comparative advantage over all competitors.

Statistics

Price Contours, by Size, 1998-2001, 2002-2004 and 2005. (table)
Selected European Countries: Imports of Fresh Apples from Southern Hemisphere. (table)
China: Net Income of Urban and Rural Households, 1980-2004. (chart)

The authoritative guide to the world apple business today.

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