The opening of the US market to Uruguayan citrus last week reportedly represents an anticipated multi-million dollar deal for the South American nation.
Exports, which are permitted entry from 9 August, could reach over US$20m in value annually and benefit 15,000 workers, according to Uruguay’s minister of foreign affairs Luis Almagro.
Speaking with local media, minister Almagro explained that access to more markets, especially the US, would open up possibilities for investment in a sector which has been negatively affected by the weather in the last few years.
In particular, the minister said the news comes at a “very good time” since next year marks the end of the Systems of Generalised Preferences with the European Union, which receives the bulk of Uruguay’s citrus exports.
“Uruguay has a long tradition of exporting citrus goods, with a large dependency on the European market since 75 per cent of our citrus exports go to Europe,” Almagro explained to news agency Uruguay Al Día.
“There is also a long tradition of meeting the certifications and demands of the most demanding markets.”
Minister Almagro also indicated that Uruguayan president José Mujica will visit the US before the end of this year.
Citrus production in Uruguay will fall by 27 per cent (or around 88,000 tonnes) to some 243,000 tonnes in 2013 due to inclement weather, mainly frosts, according to figures from the Uruguayan Ministry of Agriculture.
In 2012, Uruguayan citrus exports reached US$60m in value and 94,000 tonnes in volume. Of that total, oranges accounted for 45,000 tonnes, mandarins 35,000 tonnes and lemons 14,000 tonnes.
The main destinations were the Netherlands, which received US$17.5m-worth of the volume, followed by the UK (with US$8.8m), Russia (US$7m), Brazil (US$6.5m) and Spain (US$6m).