Agricultural Export Dumping: The Case of Mexican Winter Vegetables in the U.S. Market

Abstract

Abstract 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.