The orange juice citrus tariff imposing 70 cents per gallon on imported citrus juice was initiated in 1930. It was reduced to 35 cents in 1947 at the General Agreement Tariffs and Trade talks held in Switzerland. Two attempts by the U.S. government were tried in 1963 and 1970 to reduce citrus import tariffs, but failed through the hard work of Florida Citrus Mutual.

American citrus growers had operational costs that were four times higher than their foreign counterparts. Therefore, a reduction in tariffs would render them helpless in the international market.

Trade negotiations continued in the 1990s with the initiation of the North America Free Trade Agreement, which established free trade between Mexico, Canada and the United States. It was decided to phase out the import tariffs in 15 years.

Once again, Florida citrus growers are threatened to lose the tariff. The current 29-cents per gallon tariff is at stake in the Free Trade Area of the Americas proposals. The agreement would create a 34-nation free trade zone throughout the Americas and the Caribbean, except for Cuba.

Not only citrus growers have to defend the citrus tariff that protects their livelihood, but also every Florida resident has to do so because the Florida citrus industry employs more than 90,000 people and provides $9 billion to the Florida economy. Eliminating or reducing the tariff would cripple the Florida citrus industry. Without the citrus industry, the state would lose a healthy product, a rural lifestyle, jobs, tax dollars, green space and a healthy environment.

The 29-cent tariff primarily affects Brazil, which accounts for 90 percent of U.S. orange juice imports. Brazil exports more than 95 percent of its juice, while 90 percent of Florida’s production is consumed domestically. Without the tariff, Florida citrus growers will be out of business, Florida citrus groves will lose value, thousands of people will lose their jobs, Florida’s economy will crumble and taxes will skyrocket.

Compared with Florida, Brazil is at advantage of lower production cost due mainly to cheap labor and fewer environmental and food safety regulations and worker protection standards.

The Florida Citrus Commission, which is the governing body of the Florida Department of Citrus, passed this year a proposal approved by a tariff oversight committee concerning the funding to fight for the tariff preservation. It was decided to impose a 1.5 cents per box decrease on processed juice oranges during the 2003-04 season from 16.5 to 15 cents and use that money on a voluntary basis to help finance a $7 million political campaign to preserve the federal tariff on orange juice imports. The voluntary contribution of 1.5 cents on each box of juice oranges will generate about $3 million during the upcoming growing season.

All Florida residents should learn the facts about the tariffs and should unite and fight for their preservation.