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| Horticultural & Tropical Products Division | Return to the H&TP Home Page |
December 22, 2000
USDA Announces List of Fruits and Vegetables Targeted for $200 Million Relief Purchase
The USDA announced on December 7, 2000, the target list of
fruits and vegetables it will purchase in the coming months to
bring relief to farmers burdened with critical surpluses and
depressed market prices. Using newly appropriated funds totaling
$200 million in the coming fiscal year, USDA's Agricultural
Marketing Service (AMS) will purchase large quantities of apples,
black eyed peas, cherries, citrus, cranberries, onions, melons,
peaches, and potatoes, as specified in The Agricultural Risk
Protection Act of 2000 (Public Law 106-224). AMS has also
identified figs, plums, dried plums, apricots, pears, beans,
corn, tomatoes, sweet potatoes, certain mixed vegetables, and
certain tree nuts as also meeting the criteria specified in the
act. AMS will make the purchases that are authorized in the act
over two periods. The first purchase will be between October
2000-March 2001, reflecting those products that will soon be
harvested or already exist in abundant inventories. The remaining
commodities will be purchased in the second half of the year to
coincide with the harvest period. AMS will award its purchases
through competitive bidding and post its announcements of
intentions to buy and final purchases on its web site:
http://www.ams.usda.gov/fv/fvcomm.htm The site also offers
guidelines for growers and handlers wishing to bid on USDA
purchase offers.
United States and Chile Agree to Negotiate a Bilateral Free Trade Agreement
On November 29, 2000, President Clinton announced that the
U.S. and Chile agreed to negotiate a bilateral free trade
agreement (FTA). In the negotiations, the U.S. and the Republic
of Chile will seek to eliminate duties and commercial barriers to
bilateral trade in U.S.- and Chilean-origin goods and also to
address trade in services, agricultural products, investment,
trade-related aspects of intellectual property rights,
trade-related environmental and labor matters, and other issues.
Regarding agriculture, it is anticipated that the FTA will
improve U.S. agricultural market access to Chile. Currently,
Chile enjoys a favorable agricultural trade balance with the
U.S., with a surplus of almost $1 billion annually. In the last
five years, Chile’s access to the U.S. agricultural markets
has been very large and virtually free with annual exports around
$1.4 billion, while U.S. exports to Chile range between $120 -
$178 million annually. USDA is committed to working in close
consultation with the agricultural industry throughout the
negotiations.
ITC to Study Tariff and Non-Tariff Barriers for Major Products and Their Impact on Trade
In response to a letter received on October 31, 2000, from the
Committee on Ways and Means, U.S. House of Representatives, the
International Trade Commission (ITC) instituted an investigation
for the purpose of preparing a report that will describe the
trade barriers affecting major products in the processed food and
beverage sectors in major and potential markets and analyze the
impact of these barriers on trade. The report will cover the
following processed products: dairy products; sugars and
sugar-containing products; vegetable oils; meats; eggs and egg
products; flours and other intermediate goods; grain-based foods;
fruits and vegetables; edible nuts and nut products; alcoholic
beverages; pet food; and other miscellaneous food and beverage
products. In order to assist the ITC in identifying the barriers
and/or issues affecting the above sectors, the ITC requests that
interested parties provide preliminary written comments on such
barriers and/or issues by February 16, 2001. All preliminary
written comments should be addressed to the Secretary, United
States International Trade Commission, 500 E. Street, SW,
Washington, DC, 20436.
USDA Announces Special Apple Loan Program
Agriculture Secretary Dan Glickman announced on December 7,
2000 that USDA will make low interest loans available to apple
farmers who are suffering hardships due to low prices for their
fruit. To qualify for the Special Apple Loan Program, applicants
must have produced apples for market in either 1999 or 2000 on a
minimum of 10 acres. Eligible applicants may obtain loans up to
$300 per acre of apple trees in production in 1999 or 2000, for a
maximum of $500,000. Interested farmers should contact their
local USDA Farm Service Agency offices or USDA Service Centers
for more information. The regulations for this program appeared
in the Federal Register on December 6, 2000. The state of
Washington produces about half of the nation’s apples. Other
high apple production states include New York, Michigan, and
California.
China Trade Mission Being Formed for Spring 2001
The Foreign Agriculture Service (FAS) is tentatively planning a trade mission to China for early April 2001. The focus of the trip will be on high value products, such as those in the horticultural sector. It is anticipated that stops will include Beijing, Shanghai, Guangzhou and Taipei, with each stop providing opportunities for one-to-one meetings with interested Chinese importers. The Mission will be funded under Section 108 and Emerging Markets authority, much the same as the recently successful Latin America Trade Mission. Individual participants will be asked to provide some funds to offset the administrative costs of the Mission. Those interested in participating or receiving more information should contact Scott Bleggi at (202) 720-7931 or at bleggi@fas.usda.gov Preference will be given to individual company participants, but members of trade associations, state regional trade groups and other trade groups are encouraged to express interest as well.
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