FAS Online logo Return to the FAS Home Page
FAS Online logo2

World Trade Situation and Policy Updates

Florida Conducts Industry Seminar on Citrus Trade with China
 
On June 28, the Florida Department of Agriculture and Consumer Services sponsored a well-attended seminar in Vero Beach, Florida, designed to educate Florida citrus industry officials on how to do business in China's recently opened market for U.S. citrus. The seminar was organized in part to address the problems that have been encountered by several of the inaugural shipments. Topics covered included key logistical and technical issues of concern such as approved ports of entry, phytosanitary requirements, and strict packaging and labeling requirements. In addition, the program focused on background issues of interest, including cultural differences, population demographics and consumer wealth, and where to focus advertising efforts. Although a bilateral agreement was reached in April 1999 that opened up China's market to U.S. citrus, it was not until March 2000 that Chinese officials issued new rules governing the imports. Industry sources estimate that approximately 25 container loads of Florida grapefruit were shipped to China following the official market opening, which coincided with the tail end of the Florida shipping season.
 
Mexico Re-Opens Market To California Apricots
 
Effective June 26, 2000, Mexico re-opened its market to California apricots. Mexico had canceled the California apricot program on June 13, 2000, following the detection of pests on one shipment, including peach twig bore and the omnivorous leaf bore. Although these pests were not identified in the work plan as being of quarantine concern, Mexico insisted that a risk assessment be presented to its domestic fruit industry. Moreover, the Mexicans have noted that a revision of the work plan's identified pests of concern will take place at the end of the current shipping season. Mexico is the second largest destination for California apricots. In 1999, California exported a record 3,800 tons of apricots to Mexico, valued at more than $3 million.
 
Korean Delegation Tours U.S. Citrus Areas
 
A Korean delegation traveled to U.S. citrus areas July 18-27 to review fruit fly regulatory activities in California and Florida. Korea's market for imported oranges was liberalized in 1995 with the establishment of a tariff rate quota (TRQ) system. Since then there have been periodic disruptions of trade due to questionable TRQ administration and phytosanitary policy irregularities. Korean acceptance of APHIS exotic fruit fly quarantine zones is a key issue affecting the future of U.S. citrus exports to Korea's large and growing market. This industry-funded trip is part of USDA's continuing effort to work to resolve the quarantine issue with Korea on the basis of sound science. In addition to this trip, APHIS is providing information on all aspects of the pests and their life cycles to describe how U.S. quarantine zones are created.
 
Prune Production Forecast up 12 Percent in 2000/2001
 
The 2000/2001 California prune crop (August 2000 - July 2001) is forecast at 181,436 tons, up 12 percent from 1999/2000. Bearing acreage is estimated at 86,000 acres, up 4 percent from the previous year. Virtually all of the prunes in the United States are produced in California. The 2000/2001 prune season is progressing well, with the major prune growing areas experiencing a heavier fruit set than last year. On average, 46 percent of the California prune crop is exported. To date (August 1999 - April 2000), the value of U.S. prune exports are down 7 percent to $101 million, compared with the same period last year, due to smaller fruit size. Major export markets are Japan, Germany, and Italy.
 
Country-Of-Origin Labeling Rules Trouble for Small Retailers
 
On July 1, 2000, the Japanese Agricultural Standards Law mandated that all retail stores show the country of origin on many perishable food items. According to media reports, while major supermarkets and department stores have revised or improved their labeling systems to indicate the country of origin, small retailers are failing to conform to the new regulations. An official of the Ministry of Agriculture, Forestry and Fisheries (MAFF) said that they want to encourage small retailers to follow the rules through industry organizations.
 
New Agriculture Minister Appointed in Japan
 
The new Mori Cabinet was launched on Tuesday, July 4. Yoichi Tani was appointed the Minister for Agriculture, Forestry and Fisheries. Mr. Tani's political goal, according to news reports, is to revitalize farming communities and villages in mountainous areas. He previously served as chairman of a Liberal Democratic Party (LDP) Special Committee on depopulation and an LDP research commission on agricultural policy. Media sources indicate the current cabinet will be reshuffled again in December this year.
 
Japan's Ministry of Health to Adopt Ag Ministry's GM Food Labeling Policy
 
On July 13, the Ministry of Health and Welfare Special Labeling Committee issued its final recommendations for labeling of genetically modified foods. The Committee decided mandatory GM food labeling is necessary "in order to clearly reveal the contents of a food". However, recognizing the practical limitations of mandatory labeling of processed GM foods, the Committee decided to limit labeling to the same 24 foods under the Ministry of Agriculture's policy, to be implemented on April 1, 2001. On this date, 24 whole and semi-processed foods made from corn and soybeans must be labeled as "GM" or "not segregated" unless manufacturers use non-GM ingredients (for details see attaché report JA9154 which is available online at: /scriptsw/attacherep/default.asp).
 
Australia's Notification of Methyl Bromide Fumigation Requirements
 
Comments on Australia's methyl bromide fumigation requirements are due by August 20. To see the actual text, go to the AQIS website at http://www.aqis.gov.au/docs/appolicy/spsaus.htm and scroll down to AQIS Quarantine Treatments Aspects and Procedures (G/SPS/N/AUS/118). Comments may be submitted directly to AQIS or through Carolyn Wilson, FAS/Food Safety and Technical Services Division by fax (202-690-0677).
 
The following is the second installment in a series of four from an article written by John Griefer, Director, Trade Support Team/Animal and Plant Health Inspection Service (APHIS) on the WTO Sanitary and Phytosanitary (SPS) Agreement:
 
Harmonization as a Principle of the SPS Agreement
 
The SPS Agreement encourages but does not require countries to harmonize their SPS measures, to the greatest extent possible, by basing their health measures on relevant international standards (Anon., 1994, Article 3.1: Harmonization is intended to reduce unnecessary variances between countries' technical standards - differences which can often be the source of trade friction).
 
The SPS Agreement defines harmonization as "the establishment, recognition, and application of common sanitary and phytosanitary measures by different countries" (Anon., 1994, Annex A). The SPS Agreement recognizes three international standard-setting bodies as the official entities for developing health-related standards, guidelines, and recommendations:
These international bodies include:
Under the SPS Agreement, a phytosanitary measure which is based on or conforms to an existing and relevant international standard is presumed to be in compliance with all aspects of the SPS Agreement (Anon., Article 3.2). International standards are referred to as "safe harbor standards" in the sense that their use makes that measure immune to challenge. In these instances, a risk assessment is unnecessary. However, if a country chooses not to use an existing international standard, that country is required to base its measure on a risk assessment and be prepared to notify the reasons for their deviating from the relevant international standard (Anon., Article 3.3 and Annex B.5).
 
U.S.-Vietnam Trade Agreement to Provide Lower Tariffs, Enhanced Export Opportunities, for Horticultural Products
 
The recently concluded bilateral trade agreement between the United States and Vietnam will reduce tariffs on horticultural products by an average of 30 percent by 2004 and, in the process, bring about expanded export opportunities in this promising market. For example, tariffs are expected to fall from 40 percent ad valorem to 15 percent for strawberries, cranberries and kiwifruit; 40 percent to 25 percent for grapes, raisins, apples and pears; and from 30 percent to 20 percent for fresh and chilled tomatoes, onions, garlic, cauliflower, lettuce, carrots, cucumbers, eggplant, mushrooms and frozen potatoes. In CY1999, direct U.S. horticultural and tropical product exports to Vietnam were valued at $8.4 million, up from $5.3 million in the preceding year. Beverage bases ($4.5 million), table grapes ($950,000), apples ($655,000), frozen sweet corn ($529,000), and raisins ($150,000) were the leading export items in that year.
 
USDA Announces Major Purchase of Pears
 
USDA will purchase 64 million pounds (1.4 million cases) of canned pears. The fruit will be donated to the school lunch program and to needy families through food banks and other food assistance organizations. Pear growers, along with many other farmers and ranchers, are experiencing a difficult year, made worse by a major California cooperative's bankruptcy filing. The cooperative had contracted with many growers to purchase this year's pear crop. The uncertainty generated by the bankruptcy and canning capacity concerns in the upcoming season has created a surplus of pears, which today's action is intended to alleviate. Invitations to bid, including final details and specifications, will be mailed to pear vendors at a later date. Deliveries will be made Oct. 1, 2000 through Sept. 30, 2001. Further information can be obtained from the Commodity Procurement Branch, Fruit and Vegetable Programs, Agricultural Marketing Service, U.S. Department of Agriculture, Agricultural Marketing Service, U.S. Department of Agriculture, Room 2548-S, Washington, DC 20090-6456, telephone (202)720-4517 or on the web at www.ams.usda.gov/cp/.
 
More than 40,000 Comments Received on Revised Organic Food Standards
 
The U.S. Department of Agriculture announced on July 18, 2000 that 40,774 public comments were submitted on its revised National Organic Program proposed rule. The comment period for the proposed rule, which would establish national standards for the production and handling of organically produced products, closed on June 12. A final rule is expected by the end of 2000. The proposal was published in the March 13 Federal Register, and also can be found on the National Organic Program home page: www.ams.usda.gov/nop. All comments can be viewed at this same site.
 
USDA Solicits Petitions to Amend List of Substances Used in Organic Production and Handling
 
The U.S. Department of Agriculture invites interested parties to petition the National Organic Standards Board (NOSB) to amend the proposed National List of Allowed and Prohibited Substances (National List). Petitioners may recommend substances for inclusion on or removal from the National List. The proposed National List is a part of the March 13, 2000, revised National Organic Program (NOP) proposal. Specifically, the National List identifies those synthetic substances that may be used and the non-synthetic substances that cannot be used in organic production and handling. All amendments to the proposed National List of Allowed and Prohibited Substances will be published in the Federal Register for public comment. Individuals wishing to submit a petition to amend the List or obtain additional information may contact Robert Pooler at USDA/AMS/TMP/NOP, Room 2510 So., P.O. Box 96456, Washington, D.C. 20090-6456; phone 202-720-3252; fax 202-205-7808 or via e-mail at robert.pooler@usda.gov. Details will appear in the July 13 Federal Register. For more information, please see the program's website at http://www.ams.usda.gov/nop. The final NOP rule is expected to be published in the Federal Register by the end of the year.
 
Cultivated Blueberry Producers and Importers Approve National Promotion Program
 
Producers and importers of cultivated blueberries have voted to approve a national promotion program. The vote was taken in a referendum conducted by USDA's Agricultural Marketing Service from March 13 through April 14. In the referendum, 67.8 percent of those who voted favored implementation of the order. Those who voted in favor represented 73.2 percent of the volume of cultivated blueberries represented in the referendum. Any current producer or importer of 2,000 pounds or more of cultivated blueberries during the 1999 calendar year was eligible to vote. The program will become effective 30 days after final publication in the Federal Register. The program will be funded by an assessment of $12 per ton of domestic cultivated blueberries and $12 per ton of fresh and processed imported cultivated blueberries starting in 2001.
 


Last modified: Thursday, April 06, 2000