The US-Japan Trade Agreement (USJTA) came into force on January 1, 2020. Once USJTA is fully implemented, up to 90% of all US food and agricultural products imported into Japan will be duty free or receive preferential tariff access. Japan is a key trading partner for the US. In 2018, the US exported $318 million of fresh fruit to Japan, making Japan the 4th largest overseas market for US fresh fruit. The US was the source of one third of Japan’s fresh fruit imports and the leading supplier of fresh oranges, lemons, grapes and cherries. Japan will apply a seasonal US-specific safeguard for oranges starting at 26,435 tons. The safeguard only applies to products imported between December 1 and March 31. If the safeguard volume is exceeded, tariffs on US orange exports will increase for the remainder of that period. The safeguard tariff is 28% in Years 1-3 and 20% in Years 4-6. The safeguard will be eliminated in Year 7 (2025).
Andrew Hooke, COO, and Phillip Turnbull, CEO of APAL with Lynnell Brandt, President, and Kevin Brandt, Vice President of Pink Lady® America
Apple and Pear Australia Limited (APAL), Brandt’s Fruit Trees (BFT) and Pink Lady America (PLA) are pleased to announce a Commercial Agreement between the parties to develop trade between the US/Mexico and the broader global Pink Lady® network.
The Agreement establishes APAL as the exclusive Master Licensee for trade to and from the US and Mexico and as the Manager, Administrator and Licensor of all commercial activities to give effect to trade between US/Mexico and the global Pink Lady® network.
The Commercial Agreement combines the interests, capability and capacity of the respective parties and provides a wonderful opportunity for the Pink Lady® brand to leverage and build on its current position as the world’s most popular fresh produce brand.
Lynnell Brandt, President and Founder of Brandt’s Fruit Trees and President of Pink Lady America, was quoted as saying “we are very excited as to this opportunity to more effectively build the brand globally by working together. This will be beneficial to all stakeholders in the chain of offering Pink Lady® brand apples to the consumers everywhere possible”.
Phil Turnbull, the Chief Executive Officer of Apple and Pear Australia Limited (APAL was quoted as saying “this agreement aligns our commercial goals for the benefit of the entire Pink Lady network and lays the foundations for future success with a framework that provides clarity for market development and brand growth”.
The agreement gives strength to the total Pink Lady® network by completing a fully integrated and linked global network.
Andrew Hooke, APAL Chief Operations Officer was quoted as saying ‘this is a very exciting and significant step for our respective organisations and for the broader Pink Lady® global network. This brings about alignment across the globe and wonderful commercial opportunities for all concerned”.
PRESS RELEASE: Yakima, Washington (December 10, 2019)
Following China’s president Xi Jinping’s trip to Portugal in December 2018, several bilateral agreements have been sealed, including a protocol allowing Portugal to export table grapes to China. Portugal has also agreed to join China’s “One Belt, one Road” initiative, which could have significant implications on the flow of agriculture trade between the EU and China. The Portuguese port of Sines will be part of this initiative to promote the connection between Europe and Asia in sectors such as transport, energy and trade. Portugal and China also reaffirmed the cooperation with third countries, in regions such as Africa and Latin America, according to the joint declaration signed at the end of the visit.
Although Portuguese grape production is relatively small, the Portuguese fruit and vegetable industry hopes this protocol on table grapes will lead to other more competitive Portuguese products be allowed to enter China. In 2017, Portuguese table grapes production was 16,000 tons. In 2017, Portugal imported 31,717 tons of table grapes and exported 6,404 tons of table grapes mainly to other EU countries, worth US$12 million.
Chile is the first country to sign a post-Brexit deal with the UK. On Wednesday 30th January, representatives of the two countries met in Santiago to seal a bilateral trade continuity agreement to protect Chilean exports from the impacts of Brexit. The Chilean Government press release states that the agreement mimics the conditions of the current trade deal that Chile has with the EU, this finding a positive solution to a potentially highly complex situation. The agreement also includes a series of instruments to amplify and modernize its coverage.
“This new agreement contains a general evolutionary clause to ensure that every two years discussions will take place on how the trade relationship can be improved,” said Rodrigo Yáñez, director general of the Chilean Foreign Relations Ministry.
Trade between the UK and Chile was worth US$1.36 billion in 2018 – up 19% from the previous year. Chilean exports climbed 17%, mainly driven by fruit, wine and processed food.
A new trade agreement between the EU and Mexico will cover more than 85% of the sectors which were not covered by the previous agreement, including agriculture. The only products excluded relate to the sugar sector. Mexico’s banana exports will obtain the preferential tariff of €75/ton. For fruits not yet liberalised, such as apples, full liberalisation will be achieved in ten years, with tinned peaches to be liberalised within 7 years.
The section on Agriculture contains a declaratory article on cooperation in international fora on matters related to trade in agriculture. It particularly regards exports restrictions which may affect the availability of supplies in the international markets. There is a second article on Export Competition reaffirming all Parties’ commitment to the WTO Nairobi Declaration, eliminating all export subsidies and those measures not allowed by the WTO agreements. It also establishes a mechanism of transparency and exchange of information.