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Commodity Fact Sheet
March 2003
What’s at Stake for Fresh Citrus?
On Dec. 11, 2002, the United States concluded negotiations on a free trade agreement (FTA) with Chile, the first such arrangement with a South American country. This agreement, which Congress must now approve and enact implementing legislation, will provide America’s farmers, ranchers, food processors, and the businesses they support with improved, and in many cases, new access to Chile’s market of 15 million consumers. This comprehensive agreement calls for duty-free access on all products and addresses other trade measures for both countries.
U.S. Fresh Citrus Tariffs Eliminated
Before the agreement … U.S. fresh citrus faces 6-percent import tariffs. Chile’s total annual imports of citrus averaged 1,008 metric tons valued at $417,000 from 1999-2001, and the U.S. share of Chile’s citrus import market is 44 percent. Argentina and Peru are the other major suppliers. Demand is met largely through domestic production. Chile’s citrus fruit production was 212,000 metric tons in 2001. Lemons and limes account for 57 percent and oranges for the remainder. In addition to tariffs, U.S. fresh citrus is subject to a number of phytosanitary restrictions.
With the agreement … U.S. fresh citrus (HTS codes 08051000, 08052000, 08053010, 08053020, 08054000, 08059000) gains preferential access as 6-percent tariffs are immediately eliminated. Technical discussions with the appropriate regulatory agencies regarding Chile’s phytosanitary standards which limit trade are on-going.
Chilean Fresh Citrus Secures Improved Access to U.S. Buyers
Before the agreement … Chilean fresh grapefruit, oranges, lemons, limes and mandarins face U.S. import tariffs of 1.5-2.5 cents/kg. An 8-percent ad valorem duty is placed on all other fresh citrus. Chile’s share of the U.S. fresh citrus import market is less than 2 percent, with an average annual value of $4 million from 1999-2001. Access to the U.S. market for fresh citrus is counter-seasonal. In addition to tariffs, Chilean fresh citrus is subject to a number of phytosanitary restrictions.
With the agreement … Chilean fresh citrus gains preferential access
as U.S. import tariffs are eliminated on different schedules. The 1.8 cents/kg.
tariff on limes is immediately dropped. The 1.5 cents/kg. and 1.9 cents/kg.
tariffs on oranges, mandarins, and grapefruit (entering in October) will be
phased out over 4 years. Tariffs of 1.9 and 2.2 cents/kg. on lemons and
grapefruit (entering from August 1-September 30) are reduced and then eliminated
over 8 years. The tariff phase-out will be completed in 10 years for grapefruit
(entering from November 1-July 31), which currently face a tariff of 2.5
cents/kg. Technical discussions with the appropriate regulatory agencies
regarding U.S. phytosanitary standards which limit trade are on-going.
Return to U.S.-Chile FTA
Commodity Fact Sheet Page
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