The US Department of Commerce has determined that Canadian mushroom producers benefitted from unfair government subsidies
The US Department of Commerce has issued a preliminary affirmative ruling determining that Canadian mushroom producers received unfair government subsidies.
The announcement marks what Pennsylvania-based Giorgi Mushroom has called an ”important first step toward restoring fairness for American mushroom growers and reversing years of damage to domestic mushroom production”.
As part of the ruling, the federal government announced preliminary subsidy rates ranging from 1.62 per cent to 4.97 per cent on fresh mushroom imports from Canada after determining Canadian mushroom producers benefitted from unfair subsidisation that ”distorted fair competition in the US market”.
The duties will take effect once the ruling is formally published by the federal government in the coming days.
The ruling represents the first of two major federal trade determinations involving fresh mushroom imports from Canada.
A separate antidumping ruling expected later this summer could result in additional duties.
Giorgi Mushrooms said the ruling follows ”years of concern” surrounding unfairly subsidised mushroom imports that distorted competition, accelerated farm closures and placed increasing pressure on American mushroom growers and surrounding farming communities.
“For years, American mushroom growers have faced enormous pressure from unfairly subsidised mushroom imports that distorted competition and threatened domestic production,” said Mark Currie, CEO of Giorgi Mushroom Co.
“Yesterday’s ruling marks an important step toward restoring fairness for American mushroom growers, protecting American jobs and preserving strong domestic mushroom production for retailers and consumers across the country.
”We are encouraged federal investigators recognised the seriousness of these concerns and took meaningful action,” he continued.
“While this is an important milestone, the work continues as additional subsidy programmes remain under investigation and the antidumping phase of the case moves forward later this summer.
”More than nine American mushroom farms have already closed during this period, and once domestic farms disappear, they rarely come back,” Currie outlined.
”Giorgi Mushrooms will continue fighting for American mushroom growers, American jobs and the future of domestic mushroom production.”
Countervailing duty actions involving Canadian industries are relatively uncommon, underscoring the significance of the ruling and the seriousness of the federal investigation, he noted.
According to Giorgi Mushroom, Canadian mushroom imports grew significantly in recent years while domestic mushroom consumption remained relatively flat, placing increasing pressure on American mushroom growers and surrounding farming communities.
