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This file contains materials relating to a hearing by the International Trade Commision.
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Asparagus Imports
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1562830
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Asparagus Imports
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This file contains materials relating to a hearing by the International Trade Commision.
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John O. Marsh Files (Ford Administration)
John Marsh's General Subject Files
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U.S. Tariff Commission. 9/8/1916-1/3/1975
Imports
Vegetables
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1976-03-31
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1976
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1975-10-01
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1975
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The original documents are located in Box 5, folder "Asparagus Imports" of the John
Marsh Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 5 of the John Marsh Files at the Gerald R. Ford Presidential Library
file
OCT
2
1975
California Asparagus Growers' Association
INC.
1921
1974
1850 WEST CHARTER WAY
TELEPHONE (209) 465-3482
ASSOCIATION
MAILING ADDRESS: P. o. Box 1762 STOCKTON, CALIFORNIA 95201
October 27, 1975
The Honorable Clair W. Burgener
House of Representatives
Washington, D. C. 20515
CALIFORNIA
ASPARAGUS
Dear Mr. Burgener:
GROWERS'
ASSOCIATION
The California Asparagus Growers' Association has viewed the imports
ROGER REMONDA
of foreign asparagus as a serious threat to our industry in California.
PRESIDENT
We have appeared before the United States International Trade
WALTER HECHTMAN
Commission on several occassions, the last being in Washington, D. C.
VICE PRESIDENT
October 21, 1975. Many other allied industries including canners and
RICHARD LOGEMANN
SECRETARY-TREASURER
labor groups have testified about the plight of our industry.
DIRECTORS
A countervailing duty petition was filed and our findings were
FRANK CECCHINI
substantiated by the Treasury Department that subsidies were being
VASCO GIANNINI
J. ORLO HAYES
given by the Mexican government to Mexican processors and exporters.
GEORGE LAGORIO
BERT MAURER
It is anticipated a determination in our favor will be made by the
JULIUS MUHS
Treasury Department either in January or February of 1976. A second
ALBERT MULLER
IRVIN MULLER
petition was filed seeking higher tariffs or perhaps a quota type
RODOLFO MUSSI
program restricting the amounts of imports.
DAN NOMELLINI
RAY RUGANI
JOE TIAGO
We are submitting the following testimony information to you:
The Honorable Congressman John J. McFall, The Honorable Congressman
CALIFORNIA
B. F. Sisk, William DePaoli, Teamsters California State Council of
ASPARAGUS
GROWERS'
Cannery and Food Processing Unions and Andrew Imutan. We would
ASSOCIATION
COMMITTEES
appreciate you reading this information and submitting a written
ADMINISTRATIVE COMMITTEE
statement to the United States International Trade Commission prior
OF THE MARKETING CONTRACT
FRANK CECCHINI
to November 13, 1975, the final date testimonies can be submitted.
DENNIS DEL CHIARO
WALTER EHLERS
EURICO FONTES
J. ORLO HAYES
We are extremely fearful imports will increase to the point the
GEORGE LAGORIO
RICHARD LOGEMANN
domestic industry will be lost. We will then be at the mercy of the
LEO MANTELLI
BERT MAURER
importers, at whatever price they would demand. We hope you might
LOUIS MELLO
DOUGLAS MORRIS
be able to submit testimony that could help to preserve our industry.
JULIUS MUHS
RODOLFO MUSSI
Thank you.
DAN NOMELLINI
ERNEST PERRY
JOE SILVA
HERB SPECKMAN
Sincerely,
LAWRENCE STEFANI
JOE TIAGO
ALFRED ZUCKERMAN
AIR FREIGHT-EXPORTS-FRESH
William P. DePaoli
MARKET DISTRIBUTION STUDY
BUD KLEIN
Executive Manager
GEORGE LAGORIO
FORD i GERALD LIBRARY
BERT MAURER
RAY RUGANI
JOE TIAGO
jm
Enclosed
CALIFORNIA ASPARAGUS EXCHANGE
CONTAINER RESEARCH
EXECUTIVE COMMITTEE
LABOR COMMITTEE
EXECUTIVE COMMITTEE
ROBERT CLAUSSEN
ROGER REMONDA. PRESIDENT
FRANK CECCHINI
AUDITING
FRANK CECCHINI
EURICO FONTES
RICHARD LOGEMANN. SECRETARY-TREASURER
JOHN MARCUCCI
FRANK CECCHINI
RAY MIZUNO
VASCO GIANNINI
EURICO FONTES
STEVE GALANTI
GEORGE LAGORIO
MARK MULLER
J. ORLO HAYES
J. ORLO HAYES
VASCO GIANNINI
DAN NOMELLINI
DAN NOMELLINI
ALBERT MULLER
WALTER HECHTMAN
AUGUST MAZZANTI
RALPH PANELLA
GEORGE LAGORIO
ERNEST PERRY
FEDERAL AND STATE LEGISLATION
LEO MANTELLI
HERB SPECKMAN
EDUCATION AND RESEARCH
AND TARIFF COMMITTEE
BY-LAW REVISION
BERT MAURER
COMMITTEE
ELLIOTT ALEXANDER
WALTER HECHTMAN
JULIUS MUHS
EDWARD DEL CHIARO
LOUIS GIOVANNONI. JR.
MEMBERSHIP COMMITTEE
CHESTER LOCKE
RODOLFO MUSSI
J. ORLO HAYES
RONNIE DEL CARLO
DAN NOMELLINI
WALTER EHLERS
LEO MANTELLI
RODOLFO MUSSI
RICHARD LOGEMANN
CONRAD SILVA
IRVIN MULLER
CONRAD SILVA
LOUIS MELLO
DOUGLAS MORRIS
JOE TIAGO
ROBERT RIPKEN
LAWRENCE STEFANI
JULIUS MUHS
JOE SILVA. SR.
KYSER SHIMASAKI
ALFRED ZUCKERMAN
JAMES SARALE
TESTIMONY OF THE HONORABLE JOHN J. MC FALL
BEFORE THE UNITED STATES INTERNATIONAL TRADE COMMISSION
ON OCTOBER 14, 1975, IN SAN FRANCISCO, CALIFORNIA
PETITION BY DOMESTIC ASPARAGUS INDUSTRY FOR IMPORT RELIEF
Mr. Chairman (Mr. Will E. Lenard) and Members of the Commission:
It is a privilege to again appear before your Commission on the matter of asparagus.
In October of 1972 and on March 13, 1975, I presented testimony before you in relation
to the problems of the asparagus industry in California, particularly in my District.
Thousands of people depend upon the domestic asparagus industry for their livelihood
and the industry contributes very significantly to the economy of my District and of the
State.
Asparagus is a high labor crop both on the farm and in the processing plants. Most of
the employment by the asparagus industry comes at a time of the year when, for the workers
involved, no other employment opportunity exists. This employment is not only significant
because of the numbers employed but is especially significant because it constitutes a
major part of a cycle of agricultural employment. Workers in our area both on the farm and
in the processing plants depend upon getting a substantial part of their yearly income from
each of a number of crops, one of which is asparagus. If asparagus were lost, the cycle
would be broken and the work force could be lost.
The importance of this employment opportunity cannot be over-emphasized. The District
which I represent is an area of chronic unemployment now aggravated by the current recession.
Most of the unemployed look to agriculture or agriculturally-related industry as their only
employment opportunity. The problem is a very serious one, the proper solution of which
depends upon your review and advice.
In 1972 the domestic asparagus industry began its quest for import relief. Since
that time imports of asparagus from primarily Mexico and Taiwan have increased tremendously
while domestic asparagus production has dwindled.
This year was by far one of the worst years the asparagus industry in my District has
had. The fresh market was weak and canners were reluctant to pack asparagus. A large
number of on the farm and processing plant workers who for many years worked in asparagus
COALD FORD FIDRAN
-2-
were unable to find employment. Many growers who could not find a home for their products
have been forced to plow out their crop. This was the first year that white asparagus
not been packed in my District since before 1935.
The predictions of disaster made by the Domestic Asparagus Industry have unfor
been proven true.
The tremendous competitive advantage that the foreign producers have as related to
the domestic asparagus industry appears in great part to be due to the vast difference in
labor costs and cannot be overcome by the domestic producers.
Without import relief, more processors will terminate asparagus processing operations,
thus exporting badly needed jobs and revenue.
The present situation existing in the domestic asparagus industry requires immediate
import relief and further delay of such action will result in the complete loss of our
industry to Foreign countries.
I trust this Commission will carefully analyze the facts and recommend accordingly.
Thank you.
FORD :- LIBRARY 07VU35
TESTIMONY OF CONGRESSMAN B. F. SISK BEFORE THE UNITED STATES INTERNATIONAL TRADE
COMMISSION, OCTOBER 21, 1975, REGARDING INVESTIGATION NO. TA-201-4
Mr. Chairman - When the California Asparagus Growers Association, Inc./Washington Asparagus
Growers Association petition was given to me for review I was quite startled by the data
they had gathered. To be quite frank, I was mystified that exports had become so dominate
as to make the current tariff negligible.
I had the pleasure, early thisyear, in appearing before you to discuss agriculture's role
in your recommendations to the President as provided for in section 131 of the Trade Act
of 1974.
Today, however, we are looking at another aspect of the Trade Act of 1974, section 201,
which specifically calls for the International Trade Commission "to determine whether an
article is being imported into the United States in such increased quantities as to be a
substantial cause of serious injury, or the threat thereof, to the domestic industry
producing an article like or directly competitive with the article."
In the House "ays and Means Committee report (House Report No. 93-571) your responsibilities
are clearly spelled out, and I know you will review the data in the petition quite carefully.
In capsule form you are required to take into account the significant idling of productive
facilities in the industry. The petition shows that in 1962 there were 15 California
canning companies processing asparagus. There are five in operation today. Also, there
are only four plants freezing asparagus today.
You are also to look at underemployment in the industry. The petition cites a loss of
2,066 field jobs, and 672 jobs in the processing end.
You are also required to look at declining sales. In this case it is called to your
attention that production has gone from 376 million pounds in 1950 to 260 million pounds
last year.
Under the substantial clause portion of the law, you are asked to consider an increase in
imports and a decline in the proportion of the domestic market supplied by domestic producer.
In the fresh market, from 1965 to 1969, U.S. producers supplied 89.1 million pounds.
Imports accounted for 2.2 million pounds. However, in the period 1970 to 1974 U.S. production
had dropped to 87.7 million pounds and imports accounted for 7.2 million pounds. The same
ratios hold true for both the frozen and canned product as well.
It is my considered opinion that the preponderance of evidence before you supports the
petition. Indeed, imports are causing a substantial impact on the nation's producers to
provide for the demand on the country's consumers. We trust your final findings will
reflect this and afford the industry its proper relief.
Thank you.
FORD LIBRARY
TESTIMONY OF WILLIAM P. DE PAOLI
EXECUTIVE MANAGER OF THE CALIFORNIA ASPARAGUS GROWERS' ASSOCIATION
BEFORE THE UNITED STATES INTERNATIONAL TRADE COMMISSION ON
OCTOBER 14, 1975, IN SAN FRANCISCO, CALIFORNIA
Madame Chairperson and Members of the Commission:
I am William P. DePaoli, Executive Manager of the California Asparagus Growers'
Association located in Stockton, California. I reside at 8356 Terrace Drive, Stockton,
California.
On March 13, 1975, I appeared before this Commission and submitted testimony relating
to the asparagus industry in California. On page 4 of my testimony I stated, "Subsequent
to 1963 to and including 1975, the San Joaquin and Sacramento Delta Section witnessed a
chaotic condition which is still continuing, resulting in more plowouts, loss of international
markets, loss of domestic markets by imports of foreign asparagus and thousands of layoffs
of qualified field and cannery workers. This year processors are informing some of their
respective asparagus producers they will not accept their asparagus for processing."
Now that the 1975 season is behind us, we can now determine exactly what took place.
My statements to the Commission were correct. Canners in California were extremely reluctant
to can asparagus due to a very high carryover of the 1974 pack. In many instances, canners
informed growers they would not accept the growers' product. These asparagus growers who
could not dispose of their asparagus either to the fresh market or to the freezers plowed
out their acreages.
Numerous growers on heavy sedimentary soils, because of the lateness of the time their
asparagus beds come into production, cannot ship to the fresh market. The normal decline in
fresh market prices does not allow for economic delivery to the fresh market after about
April 10th. Those growers whose beds produce early are also confronted with the decline of
the fresh market prices. In our industry we have basically three outlets - fresh, frozen
and canned.
Annually the fresh market outlet is looked upon as a key to the stabilization of our
FORD
industry. Not only does our fresh market portion of our season create more jobs, it
provides an opportunity to avoid an over-supplied condition in the processing segment.
As an example, we can look at the 1975 season. The great influx of Mexican fresh market
-2-
asparagus into our markets simultaneously with ours, forced many of our growers to terminate
their fresh market shipments two to three weeks earlier than normal. The chain reaction
then began - these growers then were forced to find processors to accept their asparagus.
Normally at the outset of our season, all growers ship to fresh market. Then when the
freezers are prepared to open for processing, the freezer growers normally divert their
entire production to the freezers, leaving the cannery growers to continue supplying the
fresh market until the canners open, usually later on in the season. In order to market
their entire production, growers must exhaust demand on all of the three marketing outlets
each year to yield a fair return.
In a case of growers traditionally delivering to canners being told by the canners
their crop will be refused, they could not deliver to freezers for the simple reason
freezer processors historically have commitments to their respective growers.
In my judgement, the reluctance by canners to pack our commodity during the past season
can be attributed primarily to imports. To substantiate our claim that foreign imports of
canned asparagus are creating havoc in our domestic market, the last remaining packer of
canned white terminated all processing of white asparagus in 1975. Not one case of white
asparagus was packed in California or in the United States. This marks an end to a once
thriving industry. It is our desire to regain our position in the market place but this
will be difficult to accomplish without adequate tariffs or import quota relief. Hickmott
Foods, Inc., a canner of asparagus for many years, shut down their asparagus canning oper-
ation and did not pack any asparagus in 1975. The cloud of imports of canned asparagus has
created an atmosphere where canners are reluctant to process or carry substantial quantities
on hand, thereby resulting in reductions of past and future packs.
In my testimony of March 13, 1975, I further stated the domestic canned green asparagus
is also being threatened by foreign competition. In 1960, 1,945,091 cases of asparagus were
canned in California as compared to 1,638,801 cases in 1974 - a reduction of only 300,000
cases - an approximate decrease of 16% during a fourteen year period. Imports prior to
1966 were relatively nil. But in 1975, the California canned green pack totaled 530,947
cases, a reduction of 1,107,854 cases - an approximate decrease of 52% in one years time.
FORD
8111
-3-
This was the smallest pack of canned green asparagus since 1941 when records show a total
of 498,796 actual cases. Indeed, this 1975 pack is a disaster! Consumers in the United
States now can purchase foreign canned green asparagus produced either in Mexico or
Taiwan. The identical trend is developing to our canned green asparagus pack that developed
in our canned white pack. In subsequent testimony, you will hear of continued incentives
to plant asparagus in Mexico and Taiwan resulting in increased imports into the United
States. Any why not, I ask. If a can of foreign green or white asparagus is only 1c per
can cheaper to the wholesaler and is packed under a private label, a label which is also
used and packed in the United States, I am confident the wholesaler would purchase the
lesser priced product and the consumers would not know the difference. However, once our
domestic markets have been circumvented and abolished, foreign producers and foreign canners
will have a captive market in the United States as in the example of the canned white
asparagus. Under these conditions, prices of canned asparagus will unequivocally esculate
more rapidly with United States consumers not having an opportunity to purchase a United
States produced product.
Annually, our workers in the industry request increases in wages irrespective of whether
or not the asparagus grower receives a decrease, remains in a status quo position or even
receives an increase in the price of the raw product. Our workers arein most cases
justified in receiving higher wages, for they are not exempt from the same inflationary
problems you and I face.
The 1976 projected acreage in California will again drastically decrease, principally
in the San Joaquin-Sacramento Delta section. The California official acreage survey is
conducted during the latter part of October and November of each year, however, we have
conducted an acreage survey by mailing out questionnaires to the California growers.
Preliminary findings of this survey indicate California acreage to harvest for the 1976
season will decrease about 4,815.9 acres, reducing the 1975 California asparagus acreage of
38,138.4 acres to approximately 33,322.5 acres.
FORD
The major processing production areas of San Joaquin - Sacramento Delta will be the
-4-
most affected in acreage plowouts. Our acreage survey conducted earlier this year indicated
these areas to have 27,935.8 acres including new plantings. It is projected for the 1976
season to be only 23,701 acres, a decrease of 4,234.8 acres, however, additional plowouts
could take place if canners are again reluctant to pack little asparagus.
According to a United States Department of Agriculture report published on
September 1, 1975, United States asparagus acreage and production is substantially lower
than in 1974.
California asparagus production for 1975 is set at 107,000,000 pounds, 16% less than
last year. The decline in production was due mostly to a smaller acreage, although average
yield was also lower.
United States production of asparagus for fresh market and processing in 1975 is
estimated at 220,000,000, 16% below last year. Acreage harvested was down 7% from a year
ago and yield was down 200 pounds per acre.
The vast majority of asparagus growers in California no longer foresee an opportunity
for expansion and we are losing even the acreage we now have mainly because of the
instability of the markets caused by imports, the vast disparity in economics, cultural
costs and processing costs in the United States as compared to foreign countries. The
present tariff rates on all forms of imported asparagus are totally inadequate to preserve
our industry in California and the United States.
Prior to August 31, 1963, the effective date of the TSUS, the fresh asparagus now
dutiable under the TSUS item 137.85 was provided for under paragraph 774 of the Tariff Act
of 1930. The rate originally provided by that act, 50% ad valorem, was first modified in a
trade agreement with Argentina, becoming effective November 15, 1941. As a result of that
agreement, the rate was reduced to 25% ad valorem. For the last 34 years, all imports of
fresh asparagus have been dutiable at 25% ad valorem. The original rate of tariff on frozen
and canned asparagus was 35% ad valorem. Then it was reduced to 17.5% ad valorem, effective
May 22, 1948 as a result of another trade agreement. For 27 years then, canned and frozen
asparagus has been dutiable at 17.5% ad valorem.
NEW R. FORD LIBRAST
-5-
Imports prior to 1966 were negligiable or relatively nil. We admit the existing
United States tariffs at that time were apparently effective and a deterent to foreign
asparagus producing countries from exporting asparagus into the United States. Subsequent
to 1966 and to date, the United States asparagus producer and processor costs have pyramided
to levels whereby the present tariffs based on unrealistic "constructed values" have become
insufficient. United States labor and material, processing costs, which include health,
safety, environmental, sanitation and other general welfare type costs, in general increased
more rapidly than our foreign counter-parts and the existing tariffs do not compensate for
our esculation of costs. With this condition existing, it is quite evident with increased
imports, foreign asparagus producing nations are capitalizing on this opportunity.
The San Francisco Chronicle edition dated Wednesday, September 24, 1975, page 61,
contained an article titled, "The Protesters and Del Monte." In this article, a Mr.
Jack Ahern, Executive Director of the Commission on Social Justice of the San Francisco
Archdiocese, stated, "...expressed the 'Catholic concern' with the low wages paid farm
workers in Del Monte's white asparagus operations in Mexico since the company moved most
of its white asparagus canning from the San Joaquin valley." I wish at this point to
correct Mr. Ahern's statement and state that Del Monte ceased all white asparagus operations
in the San Joaquin valley in 1969.
Mr. Alfred W. Eames, Jr., Chairman of the Board of Directors of Del Monte, responded
by Mr. Ahern's statement by stating, "California farmers were not able to get the stoop
labor to harvest white asparagus." Madame Chairperson and Members of the Commission, this
statement is circumventing the actual fact. We in California had the labor force to harvest
white asparagus and we still do. My response to Mr. Eames is give the California Asparagus
Growers' Association white asparagus orders and we will fill these orders with American
produced white asparagus and harvested with American labor who are anxious to retain their
jobs in the white asparagus industry in the United States.
It is quite obvious, Del Monte and other large United States asparagus processor
located in Mexico have viewed and capitalized on a cheap labor force. With this
GERA cheap ORD LIBRARY
-6-
labor, these large corporate structures have totally destroyed our white asparagus industry
in the United States and are now about to wipe out the green asparagus industry as well.
Our growers, workers and communities want to preserve our domestic asparagus industry and
the very important jobs relating thereto.
In summary, our 1975 season was drastically curtailed by canners refusing to can our
product and the fresh market shipping season was restricted by the substantial imports of
Mexican fresh market shipments. With these conditions existing, the growers either plowed
out or were forced to terminate their harvesting season approximately one month earlier
than normal. This resulted in the loss of thousands of jobs in the fields and processing
plants. In addition, it is estimated monetary losses to workers and growers and allied
industries amounted to millions of dollars.
Madame Chairperson and Members of the Commission, we have appeared before you on
several occassions relating to you the plights of our industry. We have conscientiously
projected to you on these occassions the future of our industry. Our projections are quite
accurate. Without adequate and immediate relief in the forms of higher tariffs and quota
systems limiting imports, our industry in California and the United States is doomed.
Thank you.
FORD LIBRARY
STATEMENT OF TEAMSTERS CALIFORNIA STATE COUNCIL OF CANNERY AND FOOD PROCESSING UNIONS
BEFORE THE INTERNATIONAL TRADE COMMISSION - OCTOBER, 1975, SAN FRANCISCO, CALIFORNIA
We have tried unsuccessfully for 3 years to deal with the problem of the growth in the
importation of processed asparagus at the expense of California workers. The steady decline
in employment of Northern California workers engaged in processing asparagus coupled with
the current high unemployment in Northern California makes it imperative that the problem
of imports of processed asparagus from Mexico and Taiwan be dealt with effectively. It is
ironic that the United States permits American companies to process asparagus overseas
and then send the product back to the U. S. without the imposition of any penalties.
American industry has many privileges and has been permitted to grow globally in size.
The question remains - "Should American companies abandon American operations and carry
on foreign operations at the expense of our domestic economy?"
The following statistics give some indication of the changes that have been taking place.
Table 1 shows the sharp decline in food processing plants which processed asparagus since
1964.
TABLE 1
NORTHERN CALIFORNIA PLANTS
PRODUCING PROCESSED ASPARAGUS
1964 - 1975
CANNERIES
FROZEN FOOD
PROCESSING
PLANTS
YEAR
ASPARAGUS
PROCESSING ASPARAGUS
TOTAL
1964
15
8
23
1974
6
2
8
1975
5
1
6
As a consequence of the sharp decline in the number of plants processing asparagus, the
number of employees has likewise declined sharply. Moreover, those plants that are
operating have cut out shifts and employees.
TABLE 2
EMPLOYMENT ASPARAGUS PROCESSING PLANTS
NORTHERN CALIFORNIA
1964 - 1975
YEAR
TOTAL EMPLOYEES
FORD
(Rounded Off)
1964
7,500
1974
3,280
LIBRARY
1975
2,000
Other employees have also been affected by the decline in asparagus processing. These
include field workers, can plant employees, printers, truckers, etc.
The current unemployment figures for Northern California and the San Joaquin Valley are
the highest since the depression. More than 10 and 3/10ths percent of workers in the San
Joaquin Valley area have been unemployed during the year 1975.
One questions which remains is why we should be importing food of this type when the world
demand for food is so great. We in the United States are not in need of imports from
Taiwan and Mexico. We have the capability of producing more than enough for the needs
of the American people. We have a modern and versatile agricultural industry. We have a
technologically food processing industry and we produce quality products at reasonable
prices. We are concerned about the trend of American companies to process food abroad
-2-
and send it back to the U. S. We feel that measures must be taken to protect American
jobs and the American economy against American business ventures who move operations to
foreign countries.
LOCAL #601 - STOCKTON
California Canners & Growers Plant #7 in 1974 employed 253 persons for 12 weeks.
In 1975 California Canners & Growers Plant #7 employed 155 persons for 13 days on 1st
shift and 150 persons for 6 days 2nd shift.
Tillie Lewis Plant #1 in 1974 employed 942 persons on a two shift operation for 12 weeks.
In 1975 only 689 persons worked 5 weeks.
Tri-Valley #4 in 1974 employed 307 persons for 12 weeks and in 1975 only worked 5 weeks.
LOCAL #678 - ANTIOCH
Hickmott Canning Company employed 245 persons in 1974 for 10 weeks and after the season,
the Local Union was notified that Hickmott Canning would not process asparagus in 1975,
and this was a true statement.
LOCAL #857 - SACRAMENTO
Del Monte #11 in 1974 - 550 persons worked 8 - 10 weeks and in 1975 - 370 persons worked
4 weeks.
FORD is LIBRAR
TESTIMONY OF ANDREW IMUTAN
PRESIDENT OF THE PILIPINO BAYANIHAN, INC.
BEFORE THE UNITED STATES INTERNATIONAL TRADE COMMISSION ON
OCTOBER 14, 1975, IN SAN FRANCISCO, CALIFORNIA
Madame Chairperson and Members of the Commission:
My name is Andrew Imutan. I am presently the President of the Pilipino Bayanihan,
Inc., a community union. Our organization has more than 700 members, 80% of whom are farm
workers either retired or still working. We offer different services to the community such
as: Manpower Program (which places applicants in jobs), Youth Program (which provides
information/referral assistance, counselling, employment, recreational activities),
Migrant Workers Program (which provides direct assistance to migrant farm workers in the
areas of manpower, medical assistance, information/referral), Para-legal Program (which
provides representation before local hearing boards, prepare income taxes and provide
notary services), and a Senior Citizens Program. Before this, I was one of the Vice
Presidents of the United Farm Workers from 1965 - 1972 which gives me the reason to say
that I have a very long exposure to the asparagus industry. It is, therefore, with great
concern that I observe less and less acreage of asparagus left from year to year.
The white asparagus acreages are no longer there resulting in the scarcity of jobs
available, principally to our people, the Filipino farm workers, who, through the years,
have been the backbone of the asparagus industry. Farm workers, especially the Filipinos
through the years, have relied on asparagus as a routine part of their work pattern.
During the months of February to early June, the only farm job available to the majority
would be asparagus. If, because of foreign competition in our markets, this asparagus
industry will no longer be there, then thousands of farm workers will be without work in
those months, which would mean more welfare recipients, etc.
It is because of the terrific competition from foreign asparagus that has given
growers less incentive in getting involved with the asparagus crop.
As early as twenty years ago in California, there were 78,229 acres planted with
asparagus producing both white and green with the asparagus industry employing approximately
13,000 cutters (in fact, they had to import braceros to meet their tremendous need for
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workers then). Additional thousands of workers were also employed in packing sheds and
other related aspects of harvesting asparagus as well. But today, only 38,138 acres are
planted in California and there is no more white production, therefore, only approximately
9,000 cutters are needed to cut the fields.
We believe that the asparagus industry should be given full support by our government.
We believe that tariff and control should be imposed on foreign asparagus imports in order
to reduce the entry of competition so that the asparagus growers will have the incentive to
increase acreage, and thereby, increase labor demand, which could put more farm workers to
work at the time when they most badly need jobs.
It is therefore, with this plea that we ask the commission to strongly recommend that
tariffs be increased on asparagus imports.
Thank you.
it
FORD
LIBRAR.
JULIEN
HERRON
MEMORANDUM
TO:
The Honorable Clair W. Burgener
FROM:
Imperial Valley Asparagus Growers Association
DATE:
January 30, 1976
SUBJECT:
Asparagus - Escape Clause
On January 12, the International Trade Commission
transmitted to the President its Report and Recommendations
with regard to imports of fresh, canned and frozen asparagus.
Page references in this memorandum refer to that Report.
The Commission split 3-3. This means the President
may adopt either Recommendation which then becomes the
finding of the full Commission. Three Commissioners recommended
imposition of a quota on fresh asparagus for the months of
February, March and April in the amount of 700,000 pounds
per month. No further restrictions were recommended. One
Commissioner who did not recommend a finding of injury
nevertheless recommended a quota be imposed if the President
adopted the Recommendation which found injury and recommended
a quota.
The Imperial Valley Asparagus Growers Association
represents asparagus producers in the Imperial Valley of
California. Growers in this area produce fresh asparagus
for the fresh market. Fresh asparagus must be distributed
and sold within a few weeks after harvest. It cannot be
stored for any measurable length of time even though refrigeration
is used (A-4, A-9).
Imports of fresh asparagus come exclusively from
Mexico (A-16, A-25, A-118). These imports of fresh asparagus
can be broken down into two time periods. Imports during
January through April of fresh asparagus from Mexico enter
the United States at Calexico, California.* During August
and September fresh asparagus from Mexico enters the United
States through Hidalgo, Texas (A-16, A-118). The asparagus
entering through Calexico, California is grown on 4,000
acres in the Mexicali Valley (A-57). This production is
imported by one U.S. importer (A-118). The fresh asparagus
imported through Hidalgo, Texas comes from a different area
of Mexico.
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*
Small amounts enter at Nogales, Arizona.
LIBRARY
POPE BALLARD & LOOS, 700 Brawner Building, 888 17th Street N.W., Washington D.C. 20006-(202) 298-8600
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The fresh asparagus entering during the period
January through April of each year is of particular importance.
The 4,000 acres producing this asparagus in Mexico are
operated by one entity. That entity is interrelated with
the U.S. importer. There is currently a Customs investigation
being conducted against the sole U.S. importer of fresh
Mexicali asparagus resulting from alleged undervaluing of
the product when entered for consumption (A-25, footnote 1).
Thus the imposition of the recommended quota would operate
solely against a single commercial operation in both Mexico
and the United States which is currently under investigation
for violating U.S. Customs laws. The imposition of the
recommended quota would not affect in any way the competitive
commercial production in Mexico which enters during the
period August through September at Hidalgo, Texas.
The International Trade Commission stated at
page A-25 of its report:
"Over four-fifths of the fresh asparagus
entering the United States from Mexico during the
period 1969-73 entered during the period February,
March and April. In 1974, 72% of U.S. imports
enter during those three months. More than three-
fourths of the fresh asparagus imported annually
during the 1969-72 period entered at Calexico,
California. In 1973 and 1974, 74% and 69%,
respectively, entered at that point. This asparagus
is produced in the Mexicali Valley of Mexico and
is shipped through Calexico at approximately the
same time of the year as that shipped from the
Imperial Valley of California. Shipments of
Mexicali asparagus also coincide to a great extent
with fresh asparagus production in other areas of
California
"
This case provides an excellent vehicle for
illustrating to Mexico that the United States is serious on
trade issues. The United States has been urging Mexico for
years to join GATT, remove its restrictive import licensing
system, remove its import quotas, and change its state
trading system. These restrictive practices by Mexico have,
as a practical matter, prevented U.S. exports of fruits and
vegetables to Mexico. Taking positive action with regard to
asparagus would cause very little actual injury to Mexico as
a whole or to its asparagus production other than the one
operation in the Mexicali Valley. However, it would do two
things. First, it would be of real and meaningful benefit
to asparagus producers in the United States and those in
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California in particular. Secondly, it would be a useful
tool for demonstrating to Mexico that the United States
expects a change in our trade relations. If such change
occurred, it would be possible to negotiate further on the
quota established pursuant to this case.
Very truly yours,
Julian Julion B. Heron, Jr.
From R. FORD
THE WHITE HOUSE
WASHINGTON
March 9, 1976
FOR:
JACK MARSH
FROM:
BILL GOROG
As requested.
CARLO
18.FORD LIBRARY
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THE SPECIAL REPRESENTATIVE FOR
TRADE NEGOTIATIONS
WASHINGTON
MEMORANDUM FOR THE HONORABLE L. WILLIAM SEIDMAN
Assistant to the President
for Economic Affairs
FROM:
A
Ambassador Frederick B. Dent
Subject: Escape-Clause Case - Asparagus
Attached hereto are the recommendations of the
the interagency trade organization to the President
on the asparagus escape-clause report submitted to
him by the U.S. International Trade Commission. These
recommendations are submitted to the President pursuant
to the requirements of Section 242 (b) (1) of the Trade
Expansion Act of 1962, as amended.
Attachment
FORDO & LIORARY
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LIMITED OFFICIAL USE
THE SPECIAL REPRESENTATIVE FOR
TRADE NEGOTIATIONS
WASHINGTON
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Escape Clause Case - Asparagus
On January 12, 1976 the United States International
Trade Commission reported to you the results of its
investigation made under section 201 (b) (1) of the Trade Act
of 1974, relating to asparagus. The Commission was equally
divided in its vote as to whether the United States asparagus
industry is suffering, or is threatened with, serious injury
from increased imports.
Under the provisions of the Tariff Act of 1930, as amend-
ed, when the Commission's vote is evenly split, as in this
ruling, you may consider either position as the official
finding. If you accept the negative finding of the Commission,
the industry would not be eligible for import relief. Your
decision on this matter must be made and published in the
Federal Register by March 12, 1976.
This case has been considered in the interagency Trade
Policy Committee structure in accordance with section 242 (b) (2)
of the Trade Expansion Act of 1962. As a result, the following
recommendations have been formulated.
These three alternatives are presented for your consider-
ation:
I. All agencies, with the exception of the Department
of Agriculture, recommend that you accept the decision of
those Commissioners finding that the asparagus industry is
not injured or threatened with serious injury. I concur with
this recommendation.
Approve
Disapprove
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II. If the above recommendation is not acceptable to
you, this Office, and the Departments of Commerce and Labor
recommend that you proclaim a seven million pound global
quota on fresh asparagus imported into the United States
from February 1 through July 31, with no monthly allocations,
effective for a three-year period (with a pro-rated share for
partial periods covered by the quota) This option is opposed
by the Departments of State and Treasury.
Approve
Disapprove
III. The Department of Agriculture proposes that a global
quota of 4.5 million pounds on fresh asparagus imported January 1
through April 20 be established, with monthly allocations of
0.2 million pounds in January, 0.8 million in February, 3.0
million in March and 0.5 million in April. All other agencies
oppose this option and do not consider that import relief is
warranted in this case.
Approve
Disapprove
If you should decide to grant either of the proposed
import relief measures (Option II or III), I will prepare the
necessary implementing documents.
I might note that Senator Robert P. Griffin of Michigan,
Representative Guy Vander Jagt of Michigan, and Senator John
V. Tunney, and Representatives John J. McFall and Clair W.
Burgener of California have written to ask that you accept
the affirmative finding (that there is injury) as the official
Commission position. Representative Bill Frenzel of Minnesota
has written to ask that the negative finding be accepted.
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For your information, I am attaching a copy of the
position paper on this issue prepared by the Trade Policy
Staff Committee. I am also enclosing a draft press release
and Federal Register notice announcing your decision if you
should accept the first recommendation.
Frederick B. Dent
Attachments
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DRAFT FEDERAL REGISTER NOTICE
OFFICE OF THE SPECIAL REPRESENTATIVE
FOR TRADE NEGOTIATIONS
PRESIDENTIAL DECISION UNDER
SEC. 330 (d) OF THE TARIFF ACT OF 1930
ASPARAGUS IMPORTS NO CAUSE OF INJURY TO
U.S. ASPARAGUS PRODUCING INDUSTRY
IN ESCAPE-CLAUSE CASE
President Ford decided today to accept as the official
finding of the United States International Trade Commission
the view of those Commissioners who found that the U.S. asparagus
industry is not being injured or threatened with serious injury
by reason of increased imports. On January 12, 1976 the U.S.
International Trade Commission reported to the President by an
evenly divided vote both an affirmative and a negative finding
in its investigation of this escape clause case. In such
instances, the President is authorized to accept either finding
as the finding of the Commission.
Having reviewed all of the pertinent data and numerous
submissions made by affected parties, the President has decided
to accept the finding of those Commissioners holding that
increased imports are not a substantial cause of serious injury,
or the threat thereof, to the domestic industry producing
asparagus.
After conducting an extensive investigation, those Commis-
sioners finding in the negative reported to the President that
"in certain areas of the country there is positive indication
that asparagus production is growing and there is no evidence
of serious injury
In areas where acreage of asparagus
production is falling, there is evidence that growers have
successfully shifted to the production of other crops or found
other productive uses for their resources, and have suffered
no serious injury in doing so." The Commissioners also found
no injury to establishments involved in the processing of
asparagus.
Consistent with this decision, therefore, no import
relief measures will be applied.
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DRAFT PRESS RELEASE
ASPARAGUS IMPORTS NO CAUSE OF INJURY TO
U.S. ASPARAGUS PRODUCING INDUSTRY
IN ESCAPE-CLAUSE CASE
President Ford decided today to accept as the official
finding of the United States International Trade Commission
the view of those Commissioners who found that the U.S. asparagus
industry is not being injured or threatened with serious injury
by reason of increased imports. On January 12, 1976 the U.S.
International Trade Commission reported to the President by an
evenly divided vote both an affirmative and a negative finding
in its investigation of this escape clause case. In such
instances, the President is authorized to accept either finding
as the finding of the Commission.
Having reviewed all of the pertinent data and numerous
submissions made by affected parties, the President has decided
to accept the finding of those Commissioners holding that
increased imports are not a substantial cause of serious injury,
or the threat thereof, to the domestic industry producing
asparagus.
After conducting an extensive investigation, those Commis-
sioners finding in the negative reported to the President that
"in certain areas of the country there is positive indication
that asparagus production is growing and there is no evidence
of serious injury
In areas where acreage of asparagus
production is falling, there is evidence that growers have
successfully shifted to the production of other crops or found
other productive uses for their resources, and have suffered
no serious injury in doing so." The Commissioners also found
no injury to establishments involved in the processing of
asparagus.
Consistent with this decision, therefore, no import
relief measures will be applied.
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