THE APPLE JUICE CONCENTRATE ANTI-DUMPING CASE AGAINST CHINA: AN ESTIMATE OF CHANGE IN WASHINGTON'S REVENUES

Increasing volumes of apple juice concentrate imports from China into the U.S. began in the mid 90s as a result of low Chinese prices. In 1999, the U.S. Apple Association launched a complaint with the US International Trade Commission (USITC) regarding the Chinese price strategy. During the course of investigation, the U.S. Apple Association requested that the Department of Agricultural Economics at Washington State University analyze the impact on the total value of juice apples utilized in Washington during the span of the USITC investigation. To determine the magnitude of the effect of the USITC investigation, not only on finished apple juice prices but also on the Washington raw product price, an inverse demand for finished product and an input demand function for raw product was developed and parametrically estimated. Results from a derived demand analysis for juice apples revealed that a decrease in Chinese apple juice price reduced the prices paid by the processing sector by approximately 0.07 percent. However, throughout the course of the investigation process, juice apple prices increased significantly, resulting in an increase in the value of the juice apples purchased by processors of approximately USS 35,831,024 million dollars (April 1999 through May 2000).