April 25, 2001

TENANTS HARBOR, MAINE — In Washington, D.C. the International Trade Commission announced today their preliminary finding against Canada in an anti-dumping petition filed by Great Eastern Mussel Farms of Tenants Harbor, Maine. The six-member commission voted unanimously 6 to 0 in support of Great Eastern's claim that certain mussel processors from Prince Edward Island are likely to be selling processed blue mussels in the United States at less than fair market value which is a direct violation of U.S. trade laws. The formal petition was filed by Great Eastern Mussel Farms on March 12, 2001, both with the International Trade Commission and with the U.S. Department of Commerce. In the petition, Great Eastern presented evidence that certain mussel processors in Prince Edward Island were selling their product in the United States at lower prices than those they charged in Canada. Since home market price determines the fair market value, the petition asserts that Canadian mussel prices are below fair market value.

Now that the International Trade Commission has made the preliminary determination that Great Eastern Mussel Farms is being "materially injured" or threatened with "material injury" by processed mussels from Canada being sold at less than fair market value, the focus of the investigation shifts to the United States Department of Commerce. An extensive investigation of the facts and of prices charged in the U.S. and in Canada by Prince Edward Island processors is underway and preliminary dumping margins should be determined within the next 140 days for each Canadian processor. If Great Eastern prevails at the final hearing with the International Trade Commission, importers of Canadian processed mussels will have to pay the U.S. Treasury additional duties based on the dumping margins figured for each Canadian processor. For example, if a Canadian mussel processor were found to be dumping at a rate of 25%, the importer would have to pre-pay $250 to the U.S. Treasury for every $1,000 worth of Canadian mussels imported into the United States. The additional duties stay in effect for at least five years.

The Commission's public report Mussels from Canada (Investigation No. 731-TA-924 (Preliminary), USITC Publication 3416, May 2001) will contain the views of the Commission and information developed during the investigation.

Copies of the report are expected to be available after May 24, 2001, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.