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OILSEEDS
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. oilseed and products industry, whose 1992 exports totaled $8.3 billion, include the following:
Key Developments for U.S. Exports:
Japan Improves Access: Japan will reduce its tariff on soybean and rapeseed oil by 36% and the duties on sunflower, safflower, corn and cottonseed oil by 50%.
Korea Reduces Tariffs for Oilseeds: Korea will reduce its tariff on soybean and cottonseed oil from 9% to 5.4%, an 82% reduction from the bound rate of 30%, and will reduce its tariff for sunflower oil from 30% to 18%. Korea also will cut the tariff on soybean meal from 3% to 1.8%, representing a 91% cut from the bound rate of 20%.
Indonesia Eliminates Blending Requirement for Soybean Meal: Within three years, Indonesia will eliminate its current blending requirement for soybean meal. This should lead to a significant increase in soybean meal consumption.
The Philippines Lowers Tariffs for Soybeans and Soybean Meal: The Philippines will cut in half its tariff on soybean meal, reducing it from 10% to 5%. The Philippines will also reduce its tariff on soybeans from 10% to 9%.
Morocco Establishes Tariff-Rate Quota for Vegetable Oils: Morocco will establish a tariff-rate quota for 196,000 tons of vegetable oils.
Costa Rica Establishes Low Tariffs for Oilseeds: Costa Rica will bind (as a formal GATT commitment) tariffs for all oilseeds, including soybeans, at 1%.
Thailand Reduces Tariffs on Oilseed Products: Over its 10-year implementation period, Thailand will cut in half the tariffs on protein concentrates (HS code 2106.10), edible shelled sunflower seeds, margarine and other edible mixtures of fats and oils. In addition, Thailand will limit the application of its specific tariffs to the ad valorem levels bound in its schedule.
Malaysia Reduces Tariffs on Protein Concentrates: Malaysia will reduce its tariff on protein concentrates from the current applied rate of 25% to 15%.
U.S. Commitments:
Market Access: The United States will make the following tariff reductions in equal annual installments over 6 years, beginning in 1995:
Oilseeds
| Currently no tariff: | soybeans, sunflower seed, castor beans, sesame seeds, mustard seeds, safflower seeds, and other oilseeds |
| 55% tariff reduction: | flaxseed |
| 36% tariff reduction: | rapeseed and cotton seeds |
Oilseed Meal
| 55% tariff reduction: | linseed, palm, peanut and unspecified meals |
| 36% tariff reduction: | soybean, sunflower and rapeseed meals |
| 20% tariff reduction: | cottonseed meal |
Vegetable Oil Tariff eliminated: castor oil 55% tariff reduction: sesame oil 36% tariff reduction: linseed oil, 15% tariff reduction: soybean oil, sunflower seed oil, safflower oil, cottonseed oil, peanut oil, rapeseed oil, mustard seed oil, and corn oil. Export Subsidies: The United States will establish quantity and budgetary outlay ceilings for subsidized exports of vegetable oil. The final year commitments are the required 21% and 36% below the 1986-90 base for the quantitative and budgetary commitments, respectively. However, the reduction commitments will begin from the 1991-992 average level. The annual allowable quantities and expenditures will be the following:
| Quantity (tons) | Budget ($1,000) | |
| 1995 | 587,538 | 52,960 |
| 1996 | 498,290 | 45,184 |
| 1997 | 409,043 | 37,409 |
| 1998 | 319,795 | 29,634 |
| 1999 | 230,547 | 21,858 |
| 2000 | 141,299 | 14,083 |
(Note: This fact sheet is a summary of Uruguay Round
highlights; it does not reflect all results.)
June 1994
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