North America Edition
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“From what I’ve read about trade wars in the past, they are never a solution,” says Thierry Delapre with A.M.S. Export. “They impact growers, shippers as well as consumers and the 15 percent Chinese tariff on top of already existing tariffs is very damaging to the US produce industry,” he added.
“Any time a tariff is imposed on anyone in agriculture it is a concern,” says Scott Marboe with Oneonta Starr Ranch Growers. “Consumers on both ends of a tariff suffer in a cost of goods increase.”
CETA agreement
When it comes to cherries, Canada will likely be the main beneficiary of the trade war between the US and China. “First of all, Canada will be shipping cherries duty free to Europe due to the EU-Canada Comprehensive Economic and Trade Agreement (CETA) while the US pays 12.8 percent duties on cherries shipped to Europe,” shared Delapre. “That’s Canada’s first advantage.”
“Now, the US shoots itself in the foot with China,” he continued. There was already a tariff in place and the US will pay an additional 15 percent to export to China which competitor Canada doesn’t pay. Duties on US cherries to China will increase from 10 percent to 25 percent.
“I don’t think the impact will be very significant for California cherries,” commented Delapre. “It’s a short and fast season with high prices. I believe the problem will be much bigger for Washington cherries as their harvest partly overlaps with British Columbia and they have the competition from Canada next door.”
Marboe adds that China is a very important market for Oneonta. “Cherry sales are an important part of overall sales every year. Not just for us, but for the entire industry,” he said. Oneonta ships apples, pears and cherries to China. “We don’t think the impact on apples will be as great right now because the shipping season is winding down.” However, we are looking at the effects it can have on the upcoming cherry crop.”
Sequoia cherries. Photo: A.M.S. Export
Quality and varieties will be key
On a positive note, Delapre feels that if US suppliers keep on focusing on high-quality, new and unique cherry varieties as well as other produce varieties, US growers will be able to differentiate themselves. Delapre refers to the Sequoia cherry variety as well as a range of pluots coming out of California’s Central Valley in summer. “There will always be a niche market that cares more about quality than price,” he shared. “Mediocre quality product will always be more affected by higher tariff rates.”
There is still hope for the implemented tariffs to be a temporary action.
Although A.M.S. Export is more focused on Europe, China is a growing market for the company.
For more information:
Thierry Delapre
A.M.S. Export
Tel: (+1) 310 612 9488
Scott Marboe
Oneonta Starr Ranch Growers
Tel: 509-888-5120
