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August 9, 2002, Sherman Oaks, Calif….. "The President's signing of Trade Promotion Authority (TPA) has greatly increased the likelihood that future trade agreements could help ensure that American citrus farmers have the same access to foreign markets that their foreign competitors enjoy in the U.S." said Kam Quarles, Sunkist Growers' Director of Federal Government Affairs, who participated in the bill signing ceremony at the White House. Sunkist was a member of the Ag Coalition pressing Congress to pass the TPA bill. "Currently, tariffs and trade barriers result in U.S. citrus growers being either entirely excluded or competitively restricted in selling American produced citrus to billions of consumers worldwide." Efforts by the U.S. to seek harmonization of tariffs product-to-product is a matter of priority interest to Sunkist in the WTO round of trade talks now commencing. Some of the trade challenges facing American fresh fruit growers are evident insofar as the average bound tariff rate that the U.S. faces in fresh fruit export markets is 55%. Conversely, the U.S. applies an average rate of 5% on imported fruit. Specifically, the European Union (EU) provides an 80% discount from the common tariff for certain Mediterranean citrus producing countries, while forcing a 20% duty on American oranges. The U.S., on the other hand, allows European growers like Spanish lemon and clementine producers to sell their citrus in the U.S. market nearly duty free. "If the U.S. could obtain equal treatment for fresh orange, lemon and grapefruit exports to the EU, estimates are that our export sales would increase by $5 million to $25 million in the first two years," said Quarles. "Additionally, each year, California and Arizona orange shippers pay Japan approximately $36 million in tariff fees just to be able to compete in their market. In contrast the U.S. imposes a duty of less than 1% on Japanese Unshu oranges imported into the U.S. A significant reduction in the Japanese duty on fresh oranges would result in export sales increases upwards of $150 million in the first year," noted Quarles. Other countries with high tariff barriers to our fruit include: Korea (67.4%), Taiwan (40%), India (50.8%), Thailand (51%), Philippines (50%), Argentina (25%), Chile (11% tariff plus 18% Value Added Tax). "These," said Quarles, "are a few of the many examples of barriers that undermine the consumer attraction to our products and make us less competitive in these high tariff foreign markets and can be remedied through effective use of the Trade Act of 2002." Sunkist Growers, a grower-owned cooperative of 6,000 member citrus producers in California and Arizona, is the world's largest citrus marketing cooperative, exporting more than 35% of its citrus each year. Those exports generate more than 45% of its annual fresh fruit revenues. Sunkist is principally engaged in the sale of fresh oranges, lemons, grapefruit and tangerines, and the manufacture and sale of citrus juice and peel products. Its face-to-face sales network has led to universal distribution of citrus from Sunkist, making Sunkist® one of the most renowned brands in the world. # # #
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