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| Horticultural & Tropical Products Division | Return to the H&TP Home Page |
June 28, 2000
Korea’s Market is Ripe for U.S. Wine Exports
The Republic of Korea has recovered strongly from the1998 economic downturn with its wine imports expected to grow at double digit rates through 2005. Korea’s wine imports in the first quarter of 2000 were up 156 percent compared to the same period in 1999. Between 1992 and 1997, wine imports more than quadrupled from $5.6 million to $22.8 million. In addition, the U.S. market share continues to increase. In 1999, U.S. exports to Korea reached $2.7 million, 1 percent more than the previous year, and climbing back toward the record $3.5 million in 1997. Although U.S. wine exports to Korea face a high 15 percent tariff plus a 30 percent liquor tax and a 10 percent education tax, there are abundant opportunities for U.S. exporters.
Australia Opens Market to U.S. Pacific Northwest Cherries
Effective June 15, 2000, the Australian Quarantine and Inspection Service (AQIS) modified its existing protocol to allow the entry of sweet cherries produced in approved counties of Washington, Oregon, and Idaho. With the Pacific Northwest (PNW) cherry season now underway, the opening is expected to offer a promising new outlet for exporters in the current season. The cherries must be fumigated with methyl bromide prior to export, as is the case with California cherries. Prior to this development, only fresh sweet cherries produced in 12 California counties, were allowed to be shipped to Australia, under a May 1996 agreement between APHIS and its Australian counterpart, AQIS. USDA and the PNW cherry industry coordinated efforts in bringing about this expanded access agreement. In 1999, California sweet cherry exports to Australia totaled 319,000 tons, valued at $1.4 million.
Taiwan Lifts Excessive Pesticide Sampling of Washington State Apples
In response to a U.S. non-profit organization’s survey of Washington State apples in which pesticide residues at levels dangerous to children were reportedly detected, Taiwan began lot-by-lot inspection of Washington State apple shipments on April 7, 2000. After protests from the American Institute in Taiwan that the survey findings did not show any residues above permitted U.S. tolerance levels and that 100 percent sampling violated a July 1999 Agreement to sample only one in forty lots of fresh produce, the Taiwan authorities reduced the sampling rate to one in ten lots on May 18. Finally, after multiple representations and no violative shipments, the Taiwan authorities agreed to return to a one in forty inspection rate effective June 18, 2000. U.S. apple exports to Taiwan were valued at $56.5 million in 1999. Taiwan is the 3rd largest market for U.S. apples, with the United States enjoying a 97 percent market share.
New Zealand Wine Production and Exports to Continue Rapid Expansion
New Zealand’s 2000 grape harvest is expected to increase to as much as 90,000 tons, exceeding last year’s record 79,000 tons, due in part to the additional area of vines in production. A smaller harvest in Marlborough, New Zealand’s largest wine producing area, is expected due to a cool wet flowering period. However, this will be offset by the exceptionally large harvests in other regions. During 1999, exports accounted for 30 percent of New Zealand wine sales, and this number is expected to rise to almost 50 percent by 2003 and 66 percent by 2010, according to the Wine Institute of New Zealand. Its largest export markets are the United Kingdom, Australia, and the United States. U.S. wine imports from New Zealand rose from $7.8 million in 1998 to $12.1 million in 1999. The New Zealand industry projects that exports will reach $140 million by 2003, almost triple the 1998 total.
USDA Allows Limited Importation of Citrus from Argentina
USDA announced on June 8, 2000 that it will recognize four states in northwestern Argentina (Catamarca, Jujuy, Salta, and Tucuman) as being free from citrus canker and announced that it will allow the importation into the continental United States of grapefruit, lemons, and oranges from these areas under certain conditions and with limited distribution. In addition to the long list of requirements that fruit and groves will have to meet under the systems approach, USDA's Animal and Plant Health Inspection Service (APHIS) will be implementing the regulation over the course of four years. During the 2000-2001 shipping season, the first stage of the implementation, fruit that meets the requirement will be eligible for entry into 34 northern-tier states in the continental United States. Fruit will not be allowed entry into any citrus-producing states or any of the 10 buffer states that border citrus-producing states. The second stage begins during the 2002 shipping season and will allow eligible fruit to be shipped to the 34 first-stage states and the 10 buffer states. Fruit still will not be allowed entry to citrus-producing states. Phase three begins with the 2004 shipping season and will allow eligible fruit to be shipped to all areas of the continental United States, only if the mitigating measures are working properly.
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