September 06, 2002
Friday - 12:15am

Saying Alaska fishermen need protection against the illegal dumping of Chilean salmon in the U.S., Gov. Tony Knowles on Thursday called for the International Trade Administration (ITA) to take a look at recent export practices by the Chileans and take action to hold the salmon exporters accountable. Knowles made the request in a letter Thursday to U.S. Secretary of Commerce Donald Evans.

"Alaska fishermen are left idling on the docks because the price of salmon has dropped so low as to make fishing unprofitable; almost 4,500 have already been forced to leave the industry in recent years.".... Governor Knowles

"In recent years, Alaska salmon has come into direct competition with Chilean salmon because consumers do not currently distinguish Chilean farmed Atlantic salmon and Alaska wild Pacific salmon," Knowles said in his letter. "This competition is evidenced by the fact that prices of Alaska salmon have been pushed downward as Chilean dumping led to a glut of low-priced salmon in the U.S. market."

Knowles recently declared an economic disaster in Western Alaska because of low salmon prices that are in part the result of the Chilean dumping activity.

"Record low prices resulting from competition with dumped Chilean exports harm Alaska's estimated 17,000 salmon fishermen," Knowles said. "Alaska fishermen are left idling on the docks because the price of salmon has dropped so low as to make fishing unprofitable; almost 4,500 have already been forced to leave the industry in recent years."

"Many of Alaska's remote coastal and Native communities are economically dependent on fishing," the governor added. "Low salmon prices and unemployed fishermen have crushed these economies and left the communities without tax revenues, which they use to provide municipal and social services."

Knowles letter expresses concern about the ITA's preliminary findings of its administrative review of the dumping charges against Chilean farmed salmon exporters. Released on August 1st, the ITA action tends to exonerate four companies that comprise a considerable percentage of Chilean farmed salmon exports, but Knowles said that analysis was based on incomplete information.

"The domestic salmon industry has submitted information to ITA showing that the Chilean exporters in general have been dumping salmon at below-cost prices since June 2001 - the end of the third period of review," Knowles said. "Unfortunately, ITA analysis combines six months (January - June 2001) already being considered in the third administrative review, with the post-June 2001 period.

The inclusion of this six-month period dilutes legitimate concerns over future dumping by Chilean exporters and may have biased the outcome of the analysis. If finalized, these companies would no longer be subject to dumping duties and, under the dumping law, be excluded from further reviews.

An exclusion of these companies from dumping duties would cause irreparable harm to the fishermen and communities of Alaska, the governor said. The Department of Commerce can correct this error as it prepares its final results for the third administrative review. To do so, Knowles asked the Secretary to ensure that the ITA uses only information from the period following the end of the third period of review, and not reuse data from any part of the third period of review.

"I am confident that the post June-2001 evidence will demonstrate substantial dumping by each of these exporters, which will prevent them from being excused from the order," Knowles said. "These companies should be held accountable for their most recent practices, and the duties levied on Chilean salmon exports should be maintained to protect American salmon producers against unfair Chilean trade practices."

Source of News Release:

Office of the Governor
Web Site

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