UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,071

GREEN VALLEY PECAN COMPANY

PLANT & STORE DIVISION

INCLUDING WORKERS WHOSE WAGES WERE REPORTED UNDER

FARMERS INVESTMENT COMPANY

SAHUARITA, ARIZONA

Negative Determinations Regarding Eligibility

To Apply for Worker Adjustment Assistance

And Alternative Trade Adjustment Assistance

TRADE ADJUSTMENT ASSISTANCE

In accordance with Section 223 of the Trade Act of 1974, as
amended ("the Act"), 19 U.S.C. § 2273, the Department of Labor
("the Department") herein presents the results of an investigation
regarding certification of eligibility to apply for worker
adjustment assistance.

Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a) and (b)
of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For the
Department to issue a certification for workers under Section
222(a) of the Act, 19 U.S.C. § 2272(a), the following three
criteria must be met:

(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in such workers' firm, or
an appropriate subdivision of the firm, have become totally
or partially separated, or are threatened to become totally
or partially separated

(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:

(A) Increased Imports Path:

(i) sales or production, or both, at the workers' firm must
have decreased absolutely, AND

(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and

(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or production
of such firm or subdivision.

(B) Shift in Production Path:

(i) there has been a shift in production by such workers'
firm or subdivision to a foreign country of articles
like or directly competitive with articles which are
produced by such firm or subdivision; and

(ii)(I) the country to which the workers' firm has
shifted production of the articles is a party to a free
trade agreement with the United States;

(II)the country to which the workers' firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or

(III)there has been or is likely to be an increase
in imports of articles that are like or directly
competitive with articles which are or were produced by
such firm or subdivision.

For the Department to issue a secondary worker certification
under Section 222(b) of the Act, 19 U.S.C. § 2272(b), to workers
of a Supplier or a Downstream Producer, the following criteria
must be met:

(1) a significant number or proportion of the workers in the
workers' firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;

(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who received
a certification of eligibility under Section 222(a) of
the Act, 19 U.S.C. § 2272(a), and such supply or
production is related to the article that was the basis
for such certification; and

(3) either

(A) the workers' firm is a supplier and the component
parts it supplied to the firm described in paragraph (2)
accounted for at least 20 percent of the production or
sales of the workers' firm; or

(B) a loss of business by the workers' firm with the
firm described in paragraph (2) contributed importantly
to the workers' separation or threat of separation.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."

The investigation was initiated in response to a Trade
Adjustment Assistance for Workers (TAA) and Alternative Trade
Adjustment Assistance (ATAA) petition dated September 28, 2021 and
filed on September 29, 2021 by a State Workforce Office, on behalf
of former workers of Green Valley Pecan Company, Plant & Store
division, Sahuarita, Arizona (hereafter referred to as the "group
of workers"). The group of workers also consists of workers whose
wages were reported under Farmers Investment Company. In accordance
with 20 CFR 618.110 a worker group is defined as, ""¦including
teleworkers and staffed workers."

The group of workers is engaged in activities related to the
production of pecans.

The petition alleges that worker separations, or threats
thereof, were due to "The company is closing its pecan processing
plant due to a challenging global pecan market resulting from
tariffs and the low-cost competition from Mexican pecan
processors. When China put tariffs on a range of U.S. products,
including pecans, that cut off a significant part of Green Valley
Pecan Company's market; other places that grow pecans were able to
fill those markets. The current tariffs are 24 percent for U.S.
pecans while they remain at 7 percent for other nations."

During the course of the investigation, the Department
collected information from the petitioner(s), the workers' firm,
and other relevant sources.

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers' firm did not shift
production of pecans to a foreign country.

With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that imports of articles like or directly
competitive with the articles produced by the workers' firm have
not increased. Green Valley Pecan Company did not increase
imports of pecans or articles like or directly competitive with
the articles produced by the Green Valley Pecan Company.
Furthermore, surveys were conducted of Green Valley Pecan
Company major declining customer(s) regarding their purchases
of pecans and articles like or directly competitive with the
articles. The surveys revealed no imports of pecans or articles
like or directly competitive with the articles during the periods
of investigation. Additionally, further investigation revealed
that aggregate United States imports of pecans did not increase
during the same period of time in which United States production
of pecans were decreasing (2019/2020 compared to the
corresponding 2020/2021 period). United States production of
pecans increased.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that Green Valley Pecan Company,
Sahuarita, Arizona is not a Supplier to a firm that employed a
group of workers who received a certification of eligibility under
Section 222(a) of the Act, 19 U.S.C. § 2272(a).

With respect to Section 222(b)(2) of the Act, the
investigation revealed that Green Valley Pecan Company does not
act as a Downstream Producer to a firm (or subdivision, whichever
is applicable) that employed a group of workers who received a
certification of eligibility under Section 222(a) of the Act, 19
U.S.C. § 2272(a), based on an increase in imports from, or a shift
in production to, Canada or Mexico.

ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE

In order for the Department to issue a certification of
eligibility to apply for Alternative Trade Adjustment Assistance
("ATAA"), the group of workers must be certified eligible to apply
for Trade Adjustment Assistance ("TAA"). Because the group of
workers are denied eligibility to apply for TAA, the group of
workers cannot be certified eligible for ATAA.

Conclusion

After careful review of the facts obtained in the
investigation, I determine that all workers of Green Valley Pecan
Company, Plant & Store division, including workers whose wages
were reported under Farmers Investment Company, Sahuarita, Arizona
engaged in activities related to the production of pecans are
denied eligibility to apply for adjustment assistance under
Section 223 of the Trade Act of 1974, as amended, and are also
denied eligibility to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974, amended.

Signed in Washington, D.C. this 1st day of March, 2022



/s/ Hope D. Kinglock
_______________________
HOPE D. KINGLOCK

Certifying Officer, Office of

Trade Adjustment Assistance