Lemon Juice Dumping Investigations on Brazil and SA Extended to Jun-22

Lemon Juice

South Africa

Brazil

United States

Published Feb 22, 2022

The United States International Trade Commission (USITC) has intensified investigations on lemon juice dumping by South Africa and Brazil until Jun-22. The US is a major lemon juice market for both Brazil and SA, and if both countries are found guilty of dumping their lemon juice into the US market, anti-dumping tariffs of 128.61% and 555.22% will be imposed, respectively. These tariffs would result in losses for both countries and create a vacuum for their US counterparts to exploit, and in turn, push both countries to alternative markets such as the EU and the UK.

According to recent publications from the United States International Trade Commission (USITC), the body has intensified investigations on lemon juice from South Africa and Brazil. The USITC has determined that there is strong evidence proving that lemon juice from South Africa and Brazil cripples the US industry as it enters the US at less than market value. As a result, the investigations will continue till Jun-22.

In Dec-21, Ventura Coastal, a major US citrus juice processor, approached the USITC with lemon juice dumping allegations on Brazil and SA, leading to the initial investigation. Ventura Coastal claimed that leading Brazilian and SA exporters such as Cape Fruit Processors, Venco Food Processors, Citrus Juice Eireli, and Louis Dreyfus Company Brasil S.A., were dumping their lemon juice into the US at below fair value. This has caused lemon juice prices in the US to drop significantly, squeezing US competitors out of the market.

The US is a major lemon juice market for both Brazil and SA and the leading global market for all forms of lemon juice covered by the investigations, including lemon juice concentrate (LJC) and not from concentrate lemon juice (NFCLJ). In 2021, lemon juice exports for Brazil and SA increased considerably due to high demand and increased production. In 2021, Brazil shipped about 66.93 million liters, rising significantly by 43.52 million liters YoY, and SA lemon juice exports surged to around 31.1 million liters in 2021, an increase of almost 67%.

If SA and Brazil are found guilty of dumping their lemon juice into the US market, anti-dumping tariffs of 128.61% and 555.22% will be imposed, respectively. This would result in losses for both countries, and create a vacuum for their US counterparts to exploit. Excess lemon juice volumes from Brazil and SA will move to alternative markets, such as the EU and the UK. This would result in price reductions in these markets and raise the probability of further anti-dumping tariffs.