Publication Number: 3647

Report Title: Monitoring of U.S. Imports of Peppers

Investigation Number: 332-351

Author's name(s): Timothy P. McCarty

Date Published: November 2003

Report Description/Introductory Text: Section 316 of the North American Free-Trade Agreement Implementation Act (NAFTA Implementation Act), Public Law 103-182, requires the U.S. International Trade Commission (Commission) to monitor U.S. imports of “fresh or chilled peppers, other than chili peppers” until January 1, 2009. The purpose of this monitoring, as expressed in the NAFTA Implementation Act, is to permit the Commission to conduct an expedited investigation and, if appropriate, recommend to the President provisional relief should a petition for relief be filed under section 202 of the Trade Act of 1974 with respect to imports from all countries, or a petition requesting such relief be filed under section 302 of the NAFTA Implementation Act with respect to imports from Canada or Mexico. In response, the Commission instituted investigation No. 332-351, Monitoring of U.S. Imports of Peppers, under section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)).

This report, on the Commission’s monitoring investigation covering peppers for fresh-market use and for processing, contains statistical information gathered by the Commission on the U.S. pepper industry in the course of its monitoring. This information includes consumption and trade data (including U.S. imports and U.S. exports), and other industry data (including U.S. production data, cost-of-production estimates, product shipments, product quantities available at major shipping points, and average U.S. shipping-point prices). The information presented in this report on the U.S. pepper industry was obtained from a number of publically-available sources and principally covers 1999-2003 data and partial-year data for 2003 and 2004.

Apparent U.S. consumption of fresh-market peppers was up slightly from 2001 to 2002. U.S. production rose slightly, U.S. exports were about the same, and U.S. imports were up considerably from 2001 to 2002. U.S. imports remain significant relative to U.S. production and Mexico account’s for the bulk of imports each year. California and Florida remain the primary sources for U.S. fresh-market pepper production. Average weekly ranges of prices for green peppers from Florida were lower than prices for Mexican product in late 2000, but higher than Mexico in early 2001. U.S. production of processed peppers were up somewhat from 2001 to 2002.

Topics Covered: peppers, fresh-market peppers, peppers for fresh market, processed peppers, NAFTA, pepper production, pepper cost-of-production estimates, peppers at major shipping points, pepper average shipping-point prices, pepper imports, pepper exports, pepper customs districts of entry

Countries: United States, Mexico, Canada, Netherlands, Israel

HTS Numbers: 0709.60.40, 2009.50, 2009.55.10

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