U.S. fruit exporters to benefit from Trans Pacific Partnership deal
U.S. fruit exporters to benefit from Trans Pacific Partnership deal
WASHINGTON — Lifting tariffs as high as 40 percent on U.S. fruits is one of the reasons the Obama administration is advocating for the Trans Pacific Partnership, the U.S. Department of Agriculture said recently.
U.S. trade negotiators are trying to hammer out the biggest trade deal on the TPP with Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
USDA pointed to key commodities that would benefit from the trade deal.
“U.S. exports of fresh fruits to the TPP countries face tariffs as high as 40 percent,” USDA said. “Under the agreement, tariffs across the TPP region will be cut, offering new market access opportunities to growers and exporters. In 2014, U.S. companies exported almost $3.1 billion in fresh fruits to the TPP region."
U.S. exports of citrus fruits and juices in 2014 amounted to nearly $900 million, and the new accord could slash tariffs as high as 43 percent.
U.S. producers shipped almost $600 million in fresh apples to the TPP region, and the agreement would cut tariffs as high as 17 percent to those countries. Nearly $200 million in fresh cherries and pears also were shipped to TPP countries in 2014 with tariffs as high as 10 percent.
The trade agreement has yet to be agreed upon by the negotiating countries, however, and Congress is poised to debate whether to grant the Obama administration fast-track authority to move the deal through without amendment.
With the U.S. trade deficit widening when it comes to imports of fresh fruits and vegetables, another USDA report that forecast markets up to 2024 predicts the export market will become more important to the industry.
Vegetable exports will increase from 17 percent in 2014 to 24 percent in 2024. U.S. fruit and nut exports also increase from 23 percent in 2014 to 26 percent in 2024, the report said.
The 91-page report, USDA Agricultural Projections to 2024, said farm sales of horticultural crops are projected to grow by 1.9 percent annually over the next decade, reaching $73 billion in calendar year 2024, up from $60 billion in 2014.
Sales of fruit and tree nuts are projected to grow by 2.6 percent each year over the next decade, largely due to sales growth of tree nuts and non-citrus fruits. Farm sales value of vegetables and pulses is projected to grow 1.8 percent annually, and greenhouse and nursery crop sales are projected to increase only 0.5 percent. USDA is predicting citrus production to decline by 0.7 percent each year during the next decade.
