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CITRUS
The Uruguay Round agriculture agreement will establish disciplines in the areas of market access, export subsidies, internal support, and sanitary and phytosanitary measures. In addition, countries have made a number of commitments that will benefit U.S. agricultural exports. Highlights for the U.S. citrus industry, whose 1992 exports totaled $921 million, include the following:
Key Developments for U.S. Exports:
EU Cuts Export Subsidies: The European Union will reduce its quantity and budgetary outlay for export subsidies from current levels. In the year 2000, the EU's maximum annual allowable quantity of subsidized fresh fruit and vegetables, including citrus, will be 906,900 tons and processed fruit and vegetables will be 158,600 tons.
EU Cuts Tariff for Orange Juice: The European Union will reduce the tariff for single-strength orange juice from 19% to 12.1%.
Japan Lowers Tariffs for Oranges and Grapefruit: Japan will reduce the in- season tariff on oranges from 40% to 32% and the out-of-season tariff from 20% to 16%. By the year 2000, Japan will also eliminate the seasonal distinction on fresh grapefruit and lower the year-round duty to 10%.
Korea Improves Access for Oranges and Fruit Juice: Korea will establish a quota for oranges of 15,000 tons in 1995, 20,000 tons in 1996, and 25,000 tons in 1997. The quota will be expanded thereafter by 12.5% annually. The in-quota duty will be 50%. On July 1, 1997, Korea will establish an out-of-quota tariff for oranges at 89%, which will be reduced to 50% by the year 2004. Korea will completely liberalize fruit drinks in 1995 and orange juice in July, 1997 with interim quotas for orange juice of 50,000 tons in 1995, 55,000 tons in 1996 and 30,000 tons for the first six months of 1997.
Korea Reduces Tariffs for Citrus: Korea will reduce tariffs on lemons, limes, grapefruit and grapefruit juice by 40% from the applied tariff rate, resulting in a 30% final tariff rate for these products.
Swiss Eliminate Grapefruit Juice Tariff: Switzerland will eliminate its tariff for frozen concentrated grapefruit juice by the year 2000.
Thailand cuts Tariffs for Oranges and Grapefruit: Thailand will reduce its tariff for sweet oranges by half to 30% or 25 baht/kg and will reduce the tariffs on all other fresh citrus by one-third to 40% or 33.5 baht/kg. The tariffs on citrus juices will be reduced by one-third to 40% or 13.4 baht/liter. In addition, Thailand will limit the application of its specific tariffs to the ad valorem levels bound in its schedule. For many citrus products, including fresh oranges, this will result in an immediate and substantial cut in applied tariffs.
U.S. Commitments:
Market Access: The United States will make the following tariff reductions for citrus products, implemented in equal annual installments over a 6-year period beginning in 1995:
| 15% tariff reduction: | oranges, mandarins, grapefruit, other citrus fruits, orange juice, grapefruit juice, and concentrated lemon juice |
| 20% tariff reduction: | lemons and limes |
| 36% tariff reduction: | lime juice and unconcentrated lemon juice |
| 55% tariff reduction: | essential oils of orange, lemon and grapefruit |
(Note: This fact sheet is a summary of Uruguay Round highlights; it does not reflect all results.)
June 1994
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