From a recent USDA Federal Register notice, here's a new regulation that attempts to promote the fresh cut Christmas tree industry:
This rule establishes an industry- funded promotion, research, and information program for fresh cut Christmas trees. The Christmas Tree Promotion, Research, and Information Order (Order), was submitted to the Department of Agriculture (Department) by the Christmas Tree Checkoff Task Force (Task Force), an industry wide group of producers and importers that support this program. Under the Order, producers and importers of fresh cut Christmas trees will pay an initial assessment of $0.15 cents per tree, which would be paid to the Christmas Tree Promotion Board (Board). This Board will be responsible for administration and operation of the Order. Producers and importers that produce or import less than 500 Christmas trees annually will be exempt from the assessment. ...
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... The U.S. Christmas tree industry consists of over 12,000 farms producing over 17 million Christmas trees per year. The best selling Christmas trees are Scotch pine, Douglas fir, noble fir, Fraser fir, Virginia pine, balsam fir and white pine. Christmas trees are grown for retail sale in almost all U.S. states. Oregon, Michigan, Wisconsin, North Carolina and Pennsylvania together produce more than 75 percent of the trees produced each year. During 2007, 47 out of the 50 States contributed to the production of Christmas trees....
According to U.S. Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, imports of Christmas trees from 2006 through 2008 averaged about 1.9 million trees. During those years, imports from Canada accounted for 99.72 percent of the total imports. Italy, Columbia and Mali comprised about .28 million trees or less than one percent. For the same period, these imports were valued at $27.427 million dollars.
Using industry funds to promote a product in this way is fairly common. It raises a number of policy issues that I won't get into here. What interests me, of course, is the trade aspect. Why is there a sudden push to promote the fresh cut Christmas tree industry, including the not insignificant number of imports coming from Canada? I think the answer is found here:
The fresh cut Christmas tree industry competes directly with the artificial Christmas tree industry. Artificial Christmas tree companies advertise heavily throughout the fall and Christmas seasons. According to data supplied by the proponents artificial tree purchases have increased from 9.8 million in 2003 to 17.4 million in 2007.
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According to additional data supplied by the Task Force, the market share of fresh Christmas trees in the U.S. from 1965 to 2008 has declined by 6 percent. In comparison, the market share of artificial trees has increased 655 percent from 1965 to 2008.
And where do artificial Christmas trees come from? You guessed it:
The tree association argues that real trees offer fragrance, freshness and "the look and feel of the holidays," and are a recyclable, renewable resource. Artificial trees, mainly manufactured in China, are promoted as being convenient (no needles on the rug, and some come with lights already hung), reusable and better quality than the old stick-figure stereotypes. Backers note that some buildings bar live trees out of fire-safety concerns. (emphasis added)
Yes, trade issues are all about China these days.
UPDATE: The White House is rethinking this program:
White House spokesman Matt Lehrich told Fox News on Wednesday afternoon that the administration is putting a stop to the proposal.
"I can tell you unequivocally that the Obama administration is not taxing Christmas trees. What's being talked about here is an industry group deciding to impose fees on itself to fund a promotional campaign, similar to how the dairy producers have created the 'Got Milk?' campaign," he said. "That said, USDA is going to delay implementation and revisit this action."
