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VEGETABLES & NON-CITRUS FRUITS
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. non-citrus fruit and vegetable industry, whose 1992 exports totaled $6.0 billion, 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 allowable quantity of subsidized fresh fruit and vegetables will be 906,900 tons and processed fruit and vegetables will be 158,600 tons. Additionally, the EU will reduce the allowable quantity of subsidized wine exports by 1,106,000 hectoliters from the 1991-92 average.
EU Reduces Tariffs: Tariff cuts by the European Union include a 75% cut from the EU's current duty on fresh foliage, a 50% cut for shelled almonds, in-shell walnuts, and apples from January through March, and a 36% cut for fresh asparagus, shelled walnuts, fresh grapes, apples from August through December, roasted almonds, roasted pistachios, and potato chips. The EU had previously proposed only 20% cuts for these products.
Japan Reduces Tariffs: Japan will reduce the duty on canned peaches from 14.4% to 8%, fruit cocktail from 11.2% to 6%, and frozen peaches to 7%. The duty on prune juice will be reduced from 22.5% to 14.4%. The duty on frozen prepared sweet corn will be reduced from 12.5% to 7.5%. Likewise, the duty on canned sweet corn will be reduced from 12.5% to 10%. Japan's wine duty will be reduced from the lesser of 21.3% or 156.8 yen/liter to the lesser of 15% or 125 yen/liter. The minimum customs duty for these wines has also been reduced from 93 yen/liter to 67 yen/liter.
Korea Improves Access for Grapes, Apples and Fruit Juice: Korea will lift its import ban on fresh apples, grape juice, and fruit drinks in 1995 and fresh grapes and apple juice in 1996. The tariffs on these products will be reduced from 50% to 45% over ten years.
Korea Reduces Tariffs: Korea will reduce tariffs on the following products by 40% from the 1993 applied rates (final rates in parentheses): almonds and raisins (21%); walnuts (30%); fresh cherries (24%); prunes and frozen french fries (18%); and canned sweet corn (15%). Korea will remove the ban on fresh potatoes and potato flour, meal, pellets and flakes. It will establish a 60-ton tariff-rate quota for potato flour, meal, pellets and flakes and will reduce the in-quota rate from the current statutory rate of 9% to a final rate of 5.4%.
The Philippines Lifts Fresh Vegetable Ban: The Philippines will remove its current ban on imports of fresh vegetables.
The Philippines Reduces Tariffs: The Philippines will lower its tariffs on fresh grapes and pears from the current applied rate of 50% to 35%. It will also reduce the tariff for raisins and apples from 50% to 45%.
Malaysia Reduces Tariffs: Malaysia will reduce the tariff on almonds, walnuts, hazelnuts, chestnuts and pistachios from just over 5% to zero. The tariff for roasted nuts, other than peanuts, will be reduced from 30% to 20%. Malaysia will reduce its tariffs on canned peaches to 15% and apple juice from 30% to 20%.
Thailand Reduces Tariffs: Thailand will cut in half the tariffs on walnuts, grapes, raisins, roasted almonds, tomato juice, french fries, canned sweet corn, pears, kiwifruit, frozen peaches, fruit juice mixtures and vegetable juice mixtures. Thailand will cut by one-third the tariffs on cherries and prunes. In addition, Thailand agreed to limit the application of its specific tariffs to the ad valorem levels negotiated in its schedule. For many horticultural and processed products this will result in a very substantial cut in the applied tariffs.
Switzerland Reduces Tariffs: Switzerland will eliminate its tariffs for fresh cranberries, raisins, prunes, and dried pears. It will also shorten its protected period for green asparagus by 1« months and eliminate the tariff for the unprotected period. Switzerland will eliminate import duties over six years on processed sweet corn. For various other vegetables, Switzerland will expand its seasonal import period by 1« months and increase access commitments by 14,000 tons.
Morocco Reduces Tariffs: Morocco agreed to bind its tariffs at 34% for a wide range of products, including processed fruits and vegetables. Current applied rates for these products are generally 40%.
Norway Reduces Tariffs for Apples and Pears: Norway will convert its import regime to tariffs for apples and pears, lower its off-season and in-quota duties by between 70% to 95%, and establish tariff-rate quotas which will increase access to the Norwegian market in the peak seasons.
Finland Reduces Tariffs: Finland will eliminate its tariffs on fresh garlic, nuts in shell, dried apples, provisionally preserved sweet corn, provisionally preserved asparagus and provisionally preserved fruits and nuts. It will make substantial duty reductions on frozen sweet corn (from 29% to 9%), fresh apricots June 1-December 31 (from 36% to 21%) and fresh peaches June 1- December 31 (from 36% to 14.4%).
Austria Reduces Tariffs for Nuts and Foliage: Austria will reduce duties on shelled almonds and walnuts and on fresh foliage by between 50% and 59%.
Poland Opens Tariff Rate Quota for Prunes: Poland agreed to open a 600-ton tariff-rate quota for prunes beginning in 1995. The quota will grow to 1,000 tons during the implementation period, substantially above current trade levels.
Uruguay Reduces Tariff for Prunes: Uruguay will cut its tariff for prunes from 15% to 12%.
U.S. Commitments:
Market Access: The United States will reduce tariffs covering imports of fruits and vegetables. The reductions, which must be at least 15%, will be implemented in equal annual installments over a 6-year period beginning in 1995.
(Note: This fact sheet is a summary of Uruguay Round highlights; it does not reflect all results.)
June 1994
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