Fruit & Vegetable ATAC Visits
Brussels, Geneva & Hamburg
Seven members of the Agricultural
Technical Advisory Committee (ATAC) for Trade in Fruits
and Vegetables, accompanied by the HTP Deputy Director
for Analysis, visited Europe the week of March 22 on a
fact finding mission in preparation for the next
multilateral trade round which is scheduled to kick-off
later this year in Seattle. The committee members met
with high level EU Commission officials, USEU/FAS
representatives, and trade association contacts in
Brussels; senior WTO, USTR and FAS officials, including
two meetings with the U.S. Ambassador to the WTO, and
local and capital based delegates from Thailand, South
Africa, Canada, Australia, New Zealand, Mexico and Chile
while in Geneva; and concluded the visit with meetings
with FAS and U.S. Consulate officials and leading trade
representatives in Hamburg, a major trading center for
horticultural commodities. The information and insights
obtained during the visit will aid the committee in
developing recommendations concerning negotiating
strategies and priorities for the upcoming trade round,
particularly relating to the EU’s market access
restrictions and its extensive subsidy regime for the
horticultural sector.
Korea Signals Intention
to Open Market to South Africa Citrus
In a move which could create significant
new competition for U.S. citrus exporters, Korea’s
Ministry of Agriculture & Forestry has indicated it
will soon issue a formal announcement permitting the
entry of citrus from South Africa, according to a report
from FAS/Seoul. The two countries have reportedly been
working to address related phytosanitary concerns for the
past four years. Up to now, Korea has sourced much of its
imported citrus from the United States. U.S. citrus
exports to Korea in CY 1998 were valued at $27.7 million,
with oranges accounting for $18.7 million of the total.
Increased Competition for
U.S. Horticultural Sector from Possible Chile-Korea Free
Trade Agreement
In a
recent meeting held in Geneva involving Fruit &
Vegetable ATAC members and FAS officials, a Chilean
government official stated that Chile would soon be
initiating Free Trade Agreement discussions with South
Korea. FAS/Seoul subsequently provided information
indicating that representatives from the two countries
were to meet in Seoul April 12-14 to exchange information
on the countries’ respective economies and trade
regimes and to discuss what sectors a possible
Korea-Chile FTA would cover. The countries’ two
leaders had reportedly agreed to establish an FTA during
bilateral talks which took place on the margins of the
APEC meeting held last November in Malaysia. An FTA
between the two countries would mean increased
competition for certain U.S. horticultural products in
Korea, as Chile is a highly competitive exporter of a
number of horticultural commodities. On the plus side,
the counter-seasonal nature of U.S. and Chilean
production of fresh produce, particularly fruit, would
help to limit some of the direct market competition. U.S.
horticultural exports to Korea in CY1998 were valued at
$151 million, down sharply from the preceding year’s
$262 million, due to that country’s severe economic
downturn. The economic situation has shown recent signs
of improvement, with shipments in January 1999 up nearly
90 percent from the previous January total.
Thailand Opens Market to
Arizona Citrus
The Director General of Thailand's
Department of Agriculture signed a Specific Commodity
Understanding on April 23 permitting the entry of Arizona
citrus into that country. This caps a nearly three-year
effort by FAS/Bangkok, APHIS, HTP, and the citrus
industry to gain access to the Thai market. A key step in
the approval process included a 1997 visit by Thai
quarantine officials to Arizona, an activity that was
funded under the EMO's Technical Issues Resolution Fund.
The states of California and Florida were approved by
Thailand several years ago. Although the ongoing economic
crisis may limit the amount of Arizona citrus that will
enter the market this year, industry groups estimate
sales will eventually reach $10-15 million dollars
annually. Despite Thailand's relatively high tariffs, the
price of imported citrus is often quite competitive with
high-priced local citrus, which faces high production
costs. Moreover, the superior quality of U.S. citrus
makes it a better value for Thai consumers.
