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February 15, 2002

Hungarian Market for U.S. Tree Nuts and Grapefruit Set to Improve Due to New Concessions

On January 30, 2002, the United States and Hungary agreed to a package of trade concessions in which Hungary agreed to reduce or suspend tariffs on some key U.S. agricultural (including almonds, pecans and grapefruit) and industrial imports totaling $180 million annually.  The Hungarian government will make tariff reductions and tariff rate quota (TRQ) increases that will enter into force by April 1, 2002.  This package will improve access to the Hungarian market for U.S. almonds, pecans and grapefruit.  For in-shell almonds, the tariff rate will be lowered from 6.2 percent to 5.6 percent.  For shelled almonds, the tariff rate will drop from 6.2 percent to 3.5 percent.  The tariff rate for U.S. pecans will decline from 15.5 percent to zero.  According to the FAS office in Budapest, Hungary imported $1.3 million worth of U.S. shelled almonds in CY 2000 (80 percent of total).  Although Hungary is a currently a small market for U.S. tree nuts, there is potential for growth in the near future.  For grapefruit, a TRQ was established for 200 tons.  The in-quota rate is 2.4 percent; the out-of-quota rate is 28.8 percent, the same as the previous tariff rate.

U.S. Apples Under Food for Progress Arrive in the Russian Far East

On January 29, 2002, a press conference was held in Vladivostok, Russia to inaugurate the distribution of 2,000 metric tons of fresh U.S. apples to needy children in Russia.  The ceremony marked the first time that U.S. apples have been successfully programmed under the Food for Progress program.  Over the next eight weeks, the Global Jewish Assistance and Relief Network (GJARN) plans to distribute Gala, Red Delicious and Golden Delicious apples to 400,000 needy children in schools, hospitals, and orphanages.  Although GJARN encountered many delays with shipping and customs, GJARN and the U.S. apple industry are confident that the apples will arrive in optimal condition to be consumed by the targeted recipients.  The press conference received extensive coverage on local television, national television and in local newspapers. 

On February 1, 2002, the Canadian Customs and Revenue Agency (CCRA) announced that it extended its deadline for deciding whether to establish preliminary dumping margins on U.S. tomatoes from February 7 until March 25, 2002.  On this date, CCRA will issue a preliminary determination or terminate all or part of its investigation.  In October, the U.S. Department of Commerce’s International Trade Administration (ITA) issued revised preliminary dumping margins against greenhouse tomatoes from Canada, which ranged from 0.00 percent to 33.95 percent.  The ITA has postponed its final determination on the Canadian dumping case until no later than February 19, 2002.  In November 2001, the Canadian industry filed a complaint alleging that fresh field tomatoes from the United States had been dumped in Canada, causing harm to Canadian production.  In its original complaint, the CTTA estimated that the margins of dumping of U.S. tomatoes ranged from 14 percent to 76 percent of normal value.  U.S. imports of tomatoes from Canada during the first 11 months of CY 2001 were valued at $162 million, with greenhouse tomatoes accounting for 56 percent of the total value.  U.S. exports of fresh tomatoes, mostly field grown, to Canada over the same time period were valued at $104 million.