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Agricultural Export Dumping: The Case of Mexican Winter Vegetables in the U.S. Market
Author(s) -
Schmitz Andrew,
Firch Robert S.,
Hillman Jimmye S.
Publication year - 1981
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241207
Subject(s) - dumping , production (economics) , context (archaeology) , value (mathematics) , agriculture , business , agricultural economics , test (biology) , international trade , activity based costing , economics , agricultural science , marketing , geography , paleontology , environmental science , archaeology , machine learning , biology , computer science , macroeconomics
This paper examines the 1978 agricultural dumping charge brought by Florida winter vegetable producers against Mexican growers. It discusses “fair value” in the context of three antidumping criteria: prices at home and abroad, selling below cost of production, and third‐market test. The U.S. Department of Commerce found in favor of the Mexican producers by using the third‐market test—a test which leads to ambiguous results. It is the authors' contention that the law should be changed so that future cases can be decided on a “normal business practice” concept, accounting for production and costing decisions unique to highly perishable products.