"China's additional 15% tariff on certain US products can, without a doubt, consolidate the presence of dehydrated plums in the Asian continent," stated Andres Rodriguez, the executive director of Chile Prunes.
Rodriguez made this statement after the Ministry of Finance of China confirmed on Monday that it would apply a 15% or 25% tariff to some fruits, nuts, alcohols, pork, and stainless steel products from the United States. The tariffs are an immediate imposition on 128 American products, most of which are of agricultural origin.
This 15% duty will increase the difference in tariffs between Chile, which has a 0% tariffs, and the United States, which already had a 25% tariff. "Chile is the world's leading exporter of dehydrated plums. However, our market share in Asia, mainly in China, Japan, and India, is lower than in other markets in the world. Therefore, the commercial advantages given by this increase in tariffs creates an opportunity to expand our shipments in both countries," he added.
The dehydrated plum sector has made important advances in China in recent years. In 2016, China authorized the export of natural plums with an oven drying process, giving a strong boost to Chilean exports. Prior to that, in 2010, China had authorized the export of "tiernizada" dehydrated plums (processed with potassium sorbate), i.e. as a finished product. However the country had to fight to make shipments of natural plums, - the most important product in that country - as they use them as a raw material in their own processes.
In 2017, Chile exported this dehydrated fruit to 80 countries. Exports amounted to US $ 175 million, i.e. 11% more than the US $157.9 million achieved in the previous period.