Export markets offer opportunities for Florida citrus
South Korea has become a growing market and new opportunities are expected to open up along the Pacific Rim, including in Japan. As the US works out the detail of a free trade agreement with the EU, trade is expected to pick up there also.
As a result of the South Korean FTA that came into force last year, exports of Florida orange juice to the country have grown to 7 million gallons in the first three months of the year. Continued in this vain, volumes for the year could total almost 30 million gallons.
The only possible hitch could stem from recent legislation in South Korea which questions raises country of origin issues - US orange must come only from the US and not be blended with juice from elsewhere.
Three of the four companies that currently export to the Asian nation are subsidiaries of Brazilian companies and Brazil, unlike the US under the FTA, is required to pay a 54% tariff to enter the Korean marketplace.
The USDA certifies that the US is the country of origin for the juice, but, just recently, the Korean authorities have been requesting additional verification.
Meanwhile, there are threats that Canada could impose tariffs on US agricultural products, including orange juice. Canada is the largest market outside the US for the juice.
The Canadian government has threatened to impose the tariffs because it claims a US law requiring country-of-origin labeling violates international trade rules, he said.
Japan, a major buyer of US grapefruit, currently imposes a 25% tariff on imports of US citrus, but negotiations are underway to try and bring this to a cessation. Similarly, talks are being held with the EU. If successful an FTA between the two countries would see trade opportunities opened up between the world's two largest economies.
Source: menafn.com
