SACRAMENTO, Calif. – The California table olive industry commends the 4-0 vote by the International Trade Commission (ITC) affirming that the antidumping (AD) and countervailing duty (CVD) orders first imposed on Spanish ripe olives in 2018 must remain in place. The ITC’s determination was based on its findings that a revocation of the olive AD/CVD orders is reasonably likely to lead to a continuation or recurrence of material injury to the California ripe olive industry.
The ITC’s unanimous vote in favor of the California industry follows companion determinations issued by the Department of Commerce (Commerce) in late 2023 finding that a revocation of the AD and CVD olive orders would lead to a recurrence of dumping margins as high as 25.5% and CVD margins as high as 13.9%. These ITC and Commerce decisions were made in the context of the five-year “Sunset Review” procedures required under US trade law and, because of the affirmative rulings, now extend the olive AD/CVD orders for another five years. The Musco Family Olive Company successfully litigated these proceedings on behalf of the California-based ripe olive industry.
“The US Government and court systems have repeatedly confirmed over the last five years that the Spanish industry is still benefiting from unfair European Union (EU) subsidies and is still dumping its ripe olives in the US market,” said Michael Silveira, Chairman of the Olive Growers Council of California. “If it weren’t for the US Government’s ongoing AD/CVD orders on Spanish olives, American table olive production, and hundreds of family farmers and allied jobs would be in serious jeopardy,” he said.
For years, the EU has tried to shield its unfair, disproportionate farm subsidy payments from external legal challenges. After the US issued its olive AD/CVD orders in 2018, the EU has worked to overturn the olive orders by challenging them in the WTO and politically pressuring the US Government to terminate the olive tariffs.
The EU hopes to undermine a fundamental US trade enforcement law, Sec. 771B of the Tariff Act of 1930, used by Commerce to calculate the olive orders, and by undermining that law, terminate the olive tariffs. As the US courts have made clear, however, Sec. 771B is an important US trade law intended by Congress to ensure effective trade relief for American agriculture.
Silveira said, “The EU and Spanish interests want the US Government to overturn US trade law to allow the Spanish industry to go back to selling its dumped and subsidized olive prices with no consequences.” He added, “that would only reinforce the EU’s protectionist agricultural policies and, by eroding trade enforcement, would undermine American-grown production and US food security.”
The US Government’s AD/CVD orders on Spanish olives have given California olive farmers the time they need to reinvest in modern farming techniques, including through Musco’s “One Million Trees” initiative to help transition the industry to mechanized, drought-friendly acreage.
Dennis Burreson, a California olive grower and Vice President of Field Operations and Industry Affairs for Musco Family Olive Company, highlighted the importance of the ITC and Commerce rulings Musco achieved for the California industry, adding “The olive orders, together with our industry-led investments, are a great example of how to break the cycle of unfair foreign trade practices and rebuild high quality, environmentally-friendly American production and American jobs.”
The Olive Growers Council was organized as a bargaining cooperative with the mission to try to improve prices paid to farmers for their table olives delivered to the commercial processors.
