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World Trade Situation and Policy Updates
Japan Approves Imports of All U.S. Varieties of Nectarines
During public hearings held in
Japan on August 2, 2000, Japan’s Ministry of Agriculture,
Forestry, and Fisheries (MAFF) announced their approval of the
importation of all varieties of U.S. nectarines. A draft work
plan proposal for the exportation of U.S. nectarines to Japan has
been completed by the California industry and sent to MAFF for
approval. The import approval will need to be published in the
official Japanese gazette before shipments are allowed. The entry
requirements include fumigation of the fruit prior to export and
on-site Japanese inspectors. Anticipating final entry approval
before the end of this season, a few California nectarine
shippers are already requesting MAFF inspectors to come to
California as soon as possible to verify fumigation treatment and
facilities. Under current protocol directives, Japan only allows
imports of 10 varieties of U.S. nectarines. Without the variety
restriction, Japan’s market potential for U.S. nectarines is
estimated at $2 million annually.
U.S. and China Discuss Access for U.S. Potatoes and Citrus
Following a bilateral meeting
with China’s agricultural officials, the U.S. Department of
Agriculture announced on August 3, 2000, that China will begin
the review process to allow the importation of U.S. potatoes from
Alaska, Washington, and Oregon. The Chinese are open to importing
U.S. seed potatoes from Alaska, and tablestock potatoes from
Alaska, Washington, and Oregon. The three states are free of many
of the pests and diseases commonly associated with potatoes. The
Chinese delegation also agreed to simplify procedures and do away
with the need for the address of the packing facility to appear
on the shipping documents accompanying U.S. citrus. The
requirement led to confusion at Chinese ports of entry and
delayed the distribution of U.S. citrus shipments. The potential
for agricultural exports to China is estimated to be about $2
billion annually by 2005.
USDA Proposes Relaxing Minimum Maturity Requirements for California and Imported Kiwifruit
USDA announced on August 3, 2000,
a proposed rule to relax minimum maturity requirements for
California and imported kiwifruit. The maturity requirements for
California and imported kiwifruit would be reduced from 6.5
percent to 6.2 percent soluble solids. Recent research indicates
that fruit harvested at 6.2 percent soluble solids will ripen
properly. Consumer taste tests have shown that such fruit has a
high level of consumer acceptability. The change in the
California kiwifruit maturity requirements was recommended by the
Kiwifruit Administrative Committee, responsible for local
administration of the marketing order covering the handling of
kiwifruit grown in California. Application of the same maturity
requirements to imported kiwifruit is required under section 8e
of the Agricultural Marketing Agreement Act of 1937. Details of
the minimum maturity requirements were published in the July 31,
2000, issue of the Federal Register. Written comments will be
accepted until August 30, 2000, and should be addressed to the
Docket Clerk, AMS Fruit and Vegetable Programs, USDA Room 2525-S,
P.O. Box 96456, Washington, D.C. 20090-6456; e-mail:
moab.docketclerk@usda.gov. Copies of the proposal will be
available from George J. Kelhart at the same address, or by
calling (202) 720-2491. The proposed rule may be viewed at www.ams.usda.gov/fv/moab.html
Korea’s Imports of U.S. Fresh Fruit up 152 Percent
The year 2000 is proving to be a
record year for U.S. fresh fruit exports to Korea. Korean imports
during January - June, 2000, were valued at $58 million, up 152
percent from the same period in 1999. During the first six months
of 2000, total fruit imports in Korea grew 42 percent to $125
million compared with the same period last year. Oranges continue
to be the largest U.S. fresh fruit imported into the Korean
market, accounting for 92 percent of total fruit imports. A
strong and fast recovery of the Korean economy is driving this
surge in imports.
Large Strawberry Crop Boosts Fresh Strawberry Exports in 2000
Fresh strawberry exports in the
first six months of 2000 (January - June) are up 22 percent to
$65.7 million. Exports to Canada and Mexico, the largest and
third largest market for fresh U.S. strawberries, are up 20
percent ($59 million) and 147 percent ($2 million), respectively.
Strawberry production is up 7 percent in 2000 due to greater
acreage planted in California and Florida, the two largest
producers of strawberries. The large strawberry crop combined
with strong international demand is driving the increase in U.S.
fresh strawberry exports.
EU-Mexico Free Trade Agreement Takes Effect
On July 1, 2000, the EU-Mexico Free Trade Agreement (FTA) entered into force. This agreement aims to eliminate import tariffs on 62 percent of agricultural products by 2010 and tariffs on 96 percent of industrial products by 2007 traded between the EU and Mexico, according to the EU. Mexico will grant preferential access to EU products including beer, some oilseed products, certain vegetables, fruits and fruit juices, liquors and spirits, and tomatoes. In return, Mexico will gain preferential access for coffee, avocado, fruits and juices, and honey. Most U.S. agricultural exports to Mexico will be subject to lower tariffs under NAFTA than for like products from the EU under the new FTA. Advisors to Mexico’s new President-elect, Vicente Fox, stated that the Fox administration, which takes over the reins of the government in December 2000, will adhere to Mexico’s FTAs.
New Zealand Slashes Wine Export Promotion Budget
The New Zealand wine
industry’s cohesive international presence could be weakened
by recent budget cuts. The Wine Institute of New Zealand has
reported grower disappointment over the decision by the New
Zealand Trade Development Board to cut its direct funding to the
institute from NZ$150,000 to NZ$75,000 (US$70,500 to US$35,250)
in the coming financial year. In an earlier report, the New
Zealand industry had projected that exports would reach $140
million by 2003, almost triple the 1998 total, with exports
expected to account for almost 50 percent of wine sales by 2003.
However, those optimistic projections may be tempered somewhat as
reduced funding forces New Zealand wineries to curtail or
eliminate participation in certain international marketing events
and activities. U.S. wine imports from New Zealand rose from $7.8
million in 1998 to $12.1 million in 1999. For further information
see Attache report #NZ0043 which is available online at: /scriptsw/attacherep/default.asp
USDA Launches New On-Line Report on Ocean Container Market
The U.S. Department of
Agriculture announced on August 10, 2000, the publication of
Agricultural Ocean Transportation Trends, a semiannual, on-line
report that provides information on the ocean container market's
cost and service trends. Information in the report was developed
using data reported monthly in the AMS Ocean Rate Bulletin, which
tracks agricultural container rates to most Asian and some
European countries and covers high-valued agricultural
commodities. The data is used to generate monthly container rate
trends in the ocean container market to provide shippers and
carriers with a better view of how the market is responding to
changes in trade patterns or U.S. regulations. The report also
provides a perspective on the new confidential service
contracting procedures that came into effect May 1, 1999. This
information and other factors which affect, or are expected to
affect, the market are collected from interviews with
agricultural shippers that control more than 150,000 40-foot
equivalent units. Agricultural Ocean Transportation Trends can be
viewed on the Internet at www.ams.usda.gov/tmd/agott
USDA Proposes Expanding List of Fruits and Vegetables Eligible for Importation
The U.S. Department of Agriculture is proposing to expand the list of fruits and vegetables eligible, under specified conditions, for importation into the United States. Additionally, USDA is proposing to recognize the state of Baja California Sur, Mexico, as an area free of certain fruit flies and recognize Belize and the Department of Peten, Guatemala, as areas free of the Mediterranean fruit fly. All of the fruits and vegetables included under this proposal would have to be imported with a permit. As a condition of entry, the fruits and vegetables would also be inspected and subject to disinfection at the port of first arrival as may be required by a USDA inspector. In addition, some of the fruits and vegetables would be required to be treated or meet other special conditions. The fruits and vegetables specified in the proposal include: kiwi from Argentina, passion fruit from Chile, carambola from Mexico, and lettuce, eggplant, and watermelon from Spain. For more information, contact Donna L. West, import specialist, phytosanitary issues management team, PPQ, APHIS, 4700 River Road, Unit 140, Riverdale, Md. 20737, (301) 734-6799. Notice of this action appeared in the August 21 Federal Register. APHIS documents published in the Federal Register, and related information, including the names of organizations and individuals who have commented on APHIS rules, are available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html
Consideration will be given to
comments received on or before October 20, 2000. Please send an
original and three copies to Docket No. 00-006-1, Regulatory
Analysis and Development, PPD, APHIS Suite 3C03, 4700 River Road,
Unit 118, Riverdale, Md. 20737-1238.
USDA Announces Purchase of Tomato Products
USDA announced on August 4, 2000,
that it will purchase approximately 36 million pounds of
processed tomato products to assist struggling growers. The
tomato products will be donated to Needy Families, Child
Nutrition, and other related domestic food assistance programs.
The planned purchase will be made from offers that must be
submitted on a delivered to destination basis. Deliveries will be
made during the fiscal year beginning October 1, 2000, and ending
September 30, 2001. The purchase is in addition to 71.5 million
pounds of tomato products bought to date in fiscal year 2000,
including fresh tomatoes, canned tomatoes, tomato paste, tomato
sauce, tomato soup, tomato juice, salsa, and spaghetti sauce.
USDA is also planning to purchase about 31 million pounds of
tomato products in the coming weeks in addition to this
announcement.
USDA Announces Purchase of Peaches
USDA announced on August 3, 2000, that it will purchase approximately 36 million pounds of canned clingstone peach products to assist struggling growers. The peach products will be donated to Needy Families, Child Nutrition, and other related domestic food assistance programs. The planned purchase will be made from offers that must be submitted on a delivered to destination basis. Deliveries will be made during the fiscal year beginning October 1, 2000, and ending September 30, 2001. The purchase is in addition to 9.1 million pounds of canned peaches bought to date in fiscal year 2000. It follows Vice President Gore's July 21 announcement of a major purchase of pears. USDA is also planning to purchase about 37 million pounds of canned peach products in the coming weeks in addition to this announcement.
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