iter Faming, Saturday, October 25,1950 Secretary ‘ disappointed 9 with mushroom import decision HARRISBURG - Penn sylvania Agriculture Secretary Penrose Hallowell Wednesday expressed “disappointment” with President Carter’s recent decision on mushroom imports. He said the decision would Food processors react to mushroom tariff HARRISBURG - The Pennsylvania Food Processors Association, a trade association, representing the mushroom, fruit and vegetable pro cessors in Pennsylvania is reacting rather cautiously to the President’s action on mushrooms. Rocco Pugliese, executive director of the Pennsylvania Processors Food Association, said he feels that the three-year tariff increase, as determined by President Carter, will not effectively correct the im port problem as would a tariff quota, which was recommended by the In ternational Trade Com mission. The ITC majority and minority report recom mended a three and five year import quota respec tively. Pugliese did say, “Even though Carter’s action was not consistent with the ITC recommendation, we will Let Us Know Yoer Service Problems HOOVER DIESEL SERVICE PH: 717-656-6133 2996 West Newport Rd. Ronk*, PA 17572 give little help to the in dustry in areas where heipls needed most. Pennsylvania leads the nation in mushroom production and processing of mushroom products. The U.S. International Trade Commission take a wait-and-see ap proach to determine whether the tariff can successfully stem the flow of foreign mushroom imports into this country and in turn restory the mushroom industry as a viable component of the State’s economic com-. munity. “We just hope the President is correct in his assertion that the tariff will deal with the problem,” he said. recommended in Ai a three-year program of quantitative restrictions on mushroom imports be put in effect, to allow the national mushroom, industry time to recover from the damage inflicted by imported processed mushrooms. A minority report, en dorsed by Hallowell, called for a five-year program of import quotas. On Friday, the President announced his decision, which includes increases in tariff duties on imported processed mushrooms, and the creation of an inter agency task force to work with the American Mushroom Institute, but no import quotas. Hallowell said, “I am very disappointed with the scope and nature of the President’s actions. After a very lengthy process of investigation and public hearings, the In ternational Trade Com mission recommended two possible alternatives to provide assistance to this industry, which has been hurt by imports in the past ten years. ;ust that “The President, un fortunately for the Penn sylvania mushroom in dustry, has ignored the carefully considered recommendations of his own commission, and has gone against the purpose of the hearing process,” he said, Hallowell said an increase in tariff levels will do little to solve the problems faced by Pennsylvania growers and processors. “Imported processed mushrooms have been arriving in the United States, and severely undercutting prices in the open market place,” he said. “This increase in tariff levels will not provide any assistance to the growers of mushrooms, who still must sell their products to processors at prices set by their buyers. And the net effect to processors will be a decline in their profit margin with similar impact on the retailers of processed mushroom products. ’ ’ Hallowell said the Penn sylvania Department of Agriculture would continue (Continued from Page Al) more and unload them over here?” asked a spokesman for PFA. Concluded PFA: It’s still unfair competition. The Grange, on the other hand, maintains the decision for a tariff “is not half bad.” The Grange said the tariffs pretty much equalize the gap between the costs of production of foreign and domestic mushrooms. The problem the Grangers see is the tariff, lasting only three years, is a temporary solution. They said they will continue to work for a permanent solution. For mushroom growers there is consolation that a to work with the Penn sylvania mushroom growers and processors to seek “effective, efficient long range solutions to the problems which have disrupted the industry.” Mushrooms President finally took action, any action, to provide some form of relief. Three times in the past decade a president has declined to take any action at all on mushroom imports. In all three cases the In ternational Trade Com mission had recommended presidential action. Was the move by Carter politically motivated? “I don’t think so,” said one observer adding, “there just aren’t that many American mushroom growers around anymore.” But then, that was exactly the problem a quota or tariff on mushrooms was meant to handle.
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