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World Trade Situation and Policy Updates
U.S. Avocados Allowed into Chile
On September 29, 2000, the
Agriculture and Livestock Service (SAG) of the Chilean Ministry
of Agriculture announced its final rule allowing U.S. avocados
into Chile. The rule will take effect on December 1, 2000 and
requires that exports of U.S. avocados to Chile be accompanied by
a phytosanitary certificate and be inspected by SAG officials.
Previously, U.S. avocados were not allowed into Chile due to pest
concerns. As a large producer of avocados, Chile has been able to
meet its own high consumption demands with very little
competition from imports. However, with a large U.S. crop on the
horizon, the likelihood of lower prices, low tariffs, and the
U.S. advantage of counter seasonality, this access offers a
significant opportunity to U.S. avocado exporters. Mexico, the
world’s largest avocado producer and main U.S. competitor,
does not currently have access to the Chilean market, due to
phytosanitary concerns. U.S. avocado industry sources estimate
the potential for U.S. avocado sales to Chile to be around $2
million annually. For marketing year 1998/99, U.S. avocado
exports to all countries totaled $7 million.
Israel Looks to Import U.S. Vegetables
Israel is issuing licenses to
permit the duty-free import of up to 10,000 tons of specified
vegetables through November 10, 2000. The imported vegetables,
which include tomatoes, cabbage, cauliflower, lettuce, cucumbers,
peppers, eggplant, squash, sweet corn, and melons, are intended
to meet the needs of Israelis who observe Jewish law that the
land should lie fallow every seventh year (the Shmita). Israel
had expected these needs to be met by produce from Palestine, but
the recent disturbances have made imports difficult. Apparently
Israel’s PPIS has agreed to allow shipments of previously
restricted U.S. products, which may create a precedent for
regular duty-free shipments in the future.
U.S. Orange Crop in 2000/01 Continues to Recover
On October 12, 2000, USDA
released its first estimates of the 2000/01 U.S. citrus crops.
Orange production is estimated at 11.9 million tons, up slightly
from the 1999/2000 level, and up 34 percent from the
weather-reduced crop of 1998/99. The 2000/01 orange production
level is still down about 4 percent from the record level set in
1997/98. Grapefruit production is estimated at 2.4 million tons
in 2000/01, down 4 percent from last year. Lower production in
Florida--from fewer trees and slightly smaller fruit--is the
reason for the decline. Lemon production is estimated to recover
significantly in both Arizona and California. Production in
2000/01 is estimated at 848,000 tons, up 8 percent from the
1999/2000 level. Reports indicate that fruit size and quality are
better this year than in recent seasons. U.S. exports of fresh
citrus through July of FY2000 were valued at $553 million, up 18
percent from the comparable period in the preceding year.
Spain’s Clementine Production Estimated Down for 2000/01
According to the Agricultural
Counselor in Madrid, Spain’s production of clementines in
2000/01 is estimated to decline by 30 percent from last year,
which is expected to translate into reduced shipments to the U.S.
market. U.S. imports of mandarins (HS category which includes
clementines) from Spain take place primarily during the months of
November to February. These shipments have been rising sharply in
recent years. During the period November 1999 to February 2000,
U.S. imports from Spain totaled 75,966 tons ($82.1 million), up
from the 45,661 tons ($56.5 million) recorded in the same period
in the preceding year. In addition, the U.S. Agricultural
Counselor’s office has reported that Spain’s orange and
lemon production in 2000/01 are both expected to be down by 10
percent compared to last year.
Mexico’s Fresh Fruit Imports from the United States on the Rise in 2000
Mexico’s imports of fresh
fruit from the United States have reached $122 million during the
first six months of 2000, up 37 percent compared to the same
period in 1999. During this period, Mexico has imported $84
million in apples, $25.5 million in pears, $5 million in oranges
and $2.3 million in fresh strawberries. During calendar year
1999, Mexico imported a total of $261 million in fresh fruit with
imports from the United States valued at $191 million. Thus far
in 2000, U.S. imports make up 66 percent of total fresh fruit
imports in Mexico. Chile is the second largest fresh fruit
supplier to the Mexican market.
France Offers Niche Markets for Wide Range of U.S. Products
With a real gross domestic
product (GDP) increase of 2.9 percent in 1999, and ongoing
socio-economic and demographic changes, France offers niche
market opportunities for U.S. exporters in a wide range of
products. However, the strong dollar, which has put some pressure
on exports to the EU over the last year, continues to weigh
against significant sales increases for U.S. products. The most
promising niche markets include fruit juices and soft drinks
(including flavored spring waters), dried fruits and nuts, fresh
fruits and vegetables (particularly tropical and exotic), frozen
foods, snack foods, tree nuts, ethnic products, fish and seafood,
innovative dietetic/health and organic foods, soups, wild rice,
kosher foods, breakfast cereals, and pet foods.
USDA Announces Program to Combat Citrus Canker
On October17, 2000, Agriculture
Secretary Dan Glickman announced regulations to provide for the
payment of tree replacement funds to eligible owners of
commercial citrus groves destroyed by citrus canker. Eligible
owners will receive $26 per tree with a cap ranging between
$2,704 to $4,004 per acre depending on the tree type. In a second
step to combat citrus canker, USDA will soon publish a proposed
rule that will include compensatory payments for commercial
citrus growers who have or will incur income losses due to
regulatory actions to eradicate citrus canker, a highly
contagious bacterial disease that attacks all parts of citrus
plants, including the fruit. Citrus canker is one of the most
devastating diseases known to attack citrus. It does not,
however, present any health risks to humans or any animals. If
this invasive disease is not eradicated, it could cost commercial
citrus growers and homeowners in Florida hundreds of millions of
dollars each year in citrus losses. This interim rule was
published in the October 16, 2000 and is available on the web at
Consideration will be given to comments received on or before
December 15, 2000. Please send an original and three copies to
Docket No. 00-037-1, Regulatory Analysis and Development, PPD,
APHIS, Suite 3C03, 4700 River Road, Unit 118, Riverdale, Md.
20737-1238.
As Chinese Imports of Fresh Fruit Rise, So Does Competition
The imported fresh fruit market
in China has been expanding since the implementation of
China’s open door policy. Imported fresh fruits, including
those from the United States, are on sale at almost all the
hypermarkets and supermarkets in China. Currently, apples, grapes
and oranges are the main fresh fruits imported from the United
States. U.S. fresh fruit exports are expected to grow even
further as a result of the U.S.-China Agricultural Cooperation
Agreement, the rising income of Chinese consumers, and the more
open policy from Chinese authorities. Despite the positive image
of U.S. products, U.S. exporters are facing increasingly fierce
competition from other countries, such as Australia and Chile,
which supply reasonable quality fruit at competitive prices. Some
Chinese importers of U.S. fresh fruits noted the quality and
packaging of U.S. products, high import tariffs, and the
difficulty for Chinese traders to travel to the U.S. market, have
all affected U.S. market share.
U.S. Agricultural Exports to Mexico on Pace to Reach U.S. $7 Billion
If current trends continue through the remainder of 2000, exports of U.S. agricultural, fish, and forestry products to Mexico will reach a record $7 billion by year’s end. As the Mexican economy continues its robust recovery, spurring increased local consumption, prospects for further growth in U.S. agricultural exports are bright. The fastest growing product category is consumer-oriented products–up 31 percent through June. Big winners thus far this year are: processed fruit and vegetables (up 102 percent), fruit and vegetable juices (up 59 percent), red meat (up 35 percent), wine and beer (up 35 percent), poultry products (up 34 percent) and pet food (up 32 percent). All are on their way to record year-end levels.
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