US: Trade deal with S. Korea could be sweet for citrus industry

A free trade agreement between the United States and South Korea could provide a needed boost for Florida's citrus industry, industry executives said Monday.

"Preliminary reports on the specifics of the U.S.-Korea agreement, if approved by Congress, look extremely beneficial to the Florida citrus industry," Michael W. Sparks, executive vice president/CEO of Florida Citrus Mutual, said.

The citrus industry continues to suffer from the effects of disease and the 2004-05 hurricane seasons. At present, Florida citrus growers cannot export their products to 10 states and territories including American Samoa, Arizona, California, Guam, Hawaii, Louisiana, Northern Mariana Islands, Puerto Rico, Texas and Virgin Islands.

"This is a positive example of how international trade agreements can help open foreign markets to Florida citrus," Sparks said. "We are hopeful that the administration will use this agreement as a template in future trade negotiations, regarding citrus exports."

U.S. citrus exports to South Korea in 2006 exceeded $115 million. Congress could finalize the deal in two months.

The agreement is expected to eliminate South Korea's current 30 percent tariff on orange juice within one year and a 30 percent tariff on fresh grapefruit within five years.

Sparks also noted that the deal would reduce the tariff on oranges out of season, March 1 to Sept. 1, from 50 percent to 30 percent, with the tariff on in-season oranges eliminated on the first 2,500 metric tons of a shipment. Anything over 2,500 metric tons would hold a 50 percent tariff.

Source: tcpalm.com