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PEANUTS
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. peanut industry, whose 1992 exports totaled $240 million, include the following:
Key Developments for U.S. Exports:
Switzerland Eliminates Duty for Peanuts: Switzerland will eliminate the duty on peanuts for human consumption over six years.
Poland Eliminates Duty for Peanuts: Poland will eliminate the current 15% duty on shelled peanuts over six years.
Korea Reduces Tariff on Peanuts: Korea will reduce the in-quota tariff on shelled peanuts from 40% to 24%. Korea will liberalize imports of roasted peanuts on July 1, 1996.
Thailand Reduces Tariffs on Peanut Butter and Peanuts: Thailand will cut the tariff on peanut butter and edible peanuts in half to 30% or 25 baht/kg for peanut butter and 30% or 1.5 baht/kg for edible peanuts. In addition, Thailand will limit the application of its specific tariffs to the ad valorem levels bound in its schedule.
Norway Reduces Tariff on Peanut Butter: Norway will cut its tariff on peanut butter from 30% to 6%.
Finland Binds Tariffs on Peanut Butter and Roasted Peanuts at Free: Finland will bind its tariff for roasted peanuts at free and reduce its tariff for peanut butter from 4.3% to free.
U.S. Commitments:
Market Access: Under the tariffication discipline the United States is replacing Section 22 import quotas for peanuts with an ad valorem tariff equivalent of 155% ad valorem for shelled peanuts and 192.7% for in-shell peanuts. These tariffs will be reduced by the minimum required 15% in equal annual installments over 6 years beginning in 1995, to 131.8% and 163.8% respectively.
The United States will establish a tariff-rate quota for peanuts of 33,770 tons in 1995, growing to 56,283 tons at the end of the 6 years. The quota year will be changed to begin in April of each year instead of August. This will provide for a consistent supply throughout the year and encourage price stability. 78% of this quota is allocated to Argentina and 3,377 tons is reserved for Mexico in accordance with the NAFTA agreement.
The United States will also establish a tariff-rate quota for peanut butter which will start at 19,150 tons in 1995, and increase to 20,000 tons over six years. This quota will be allocated among current importing countries (Canada 14,500 tons and Argentina 3,650 tons), with an additional amount permitted for less developed countries (750 growing to 1,600 tons) and for other countries (250 tons).
The over-quota ad valorem rate of 155% for peanut butter will be reduced by the required minimum 15% to 131.8% in equal annual installments over 6 years beginning in 1995. The in- quota rate will set at 2 c/kg in 1995 and reduced to Free by 1998.
(Note: This fact sheet is a summary of Uruguay Round highlights; it does not reflect all results.)
June 1994
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