It took five years of negotiating, but on October 5 a deal was reached among 12 countries negotiating the Trans-Pacific Partnership. The countries include the US, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.Elimination of tariffs
Under the deal, 98 percent of tariffs will be eliminated, including tariffs on fresh produce. “A country like Japan has really high tariffs on some fresh produce items and the agreement will help in making US produce less expensive upon arrival,” says Thierry Delapre with A.M.S. Export. “However, I don’t think in the produce industry we will see the immediate impact of the agreement,” Delapre adds. “In fresh produce trade, there are other variables that are much more important than tariffs. Think about weather conditions, currency exchange rates and supply and demand in general. Tariffs have never been the most significant element of fresh produce trade.”
Beneficial for Chile and Peru
“Nevertheless, I do believe that this agreement will be particularly beneficial to countries in South America, like Peru and Chile. It will definitely help their exports as they are a counter-seasonal supplier and have volumes available at a time when they are more needed.”
Trade barriers will always remain
“I expect and hope that the agreement will support trade in general, but there will continue to be ways to create barriers,” mentioned Delapre. “In India for instance, apple imports were going up so fast that last month the government placed restrictions on imports by only allowing apples to be imported via one port.” This port traditionally handles about half of apple imports and with India being the third-largest export market for US apples, this will impact trade. “Phytosanitary regimes and other restrictions will continue to play a significant role in fresh produce trade,” finished Delapre.
For more information:
Thierry Delapre
A.M.S. Export
Tel: (+1) 323-825-2682