Low tariffs imposed by the US on fruit and vegetable imports may be behind the growing deficit in the country's fruit and vegetable trade, according to a recent government report.
In 1995, the US boasted a US$300m surplus in the fruit and vegetable trade, meaning it exported more produce than it imported. Last year, however, that surplus was a US$6bn deficit, with exports of US$10bn well behind imports of US$16bn, The Packer reported.
The government report stated growth on imports of fresh and processed fruits and vegetables grew at an average of 6 per cent a year from 1990 to 2009, while the average annual growth for exports was 4 per cent.
A disparity between US duties and the tariffs imposed by other countries could be a factor in why exports are lagging behind.
According to the USDA, the average global tariff rate for fruit and vegetables is over 50 per cent of the import value.
More than half of EU tariffs fall in the 5-25 per cent range, while much higher tariffs are charged in Asian nations such as China, India, Thailand and South Korea.
The US, on the other hand, charges less than 5 per cent on over half of the fresh produce imports it receives.
Mike Wootton, senior vice president for corporate relations for California citrus marketer Sunkist, says that US citrus imports pay huge amounts to ship their produce overseas, while other country's can bring citrus in for a very small amount.
"In the case of Korea, we expect that later this year they are going to have access to the US market in all states for their unshu oranges, and those will come in at less an 1 per cent duty," he said.
"Meanwhile, as we try to market our navel oranges into Korea, those are confronted with a 50 per cent ad valorem duty, which is huge and raises the price of the produce in the marketplace."
Similarly, US exporters are subject to tariffs imposed by Mexico on a raft of products in response to a dispute over truck access.
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