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TRADE
FIGHT NOT OVER FOR CITRUS, SUGAR
Publication:
Palm Beach Post
Printed: Saturday, November 22, 2003
Wrtitten by: Susan Salisbury |
MIAMI -- Florida's sugar and citrus industries didn't
lose at the Free Trade
Area of the Americas talks this week, but they didn't win, either.
The agricultural powerhouses, with a combined economic impact of $12
billion
on the state, are fighting to remain viable in the face of increasing
foreign competition. Both lead the nation in production of their respective
commodities, with 2 million tons of sugar and 252 million 90-pound boxes
of
oranges forecast for the 2003-04 season.
"Since there is no finality in the agreement, I don't know that
anything major has changed," Florida Agriculture Commissioner Charles
Bronson said
Friday. "It does look like they have set a good format for talks
to
continue."
Trade ministers from 34 countries in the Western Hemisphere announced
Thursday they had reached a sketchy two-part framework agreement for
a
free-trade bloc throughout the Americas and the Caribbean, except for
Cuba.
After signing off on a common set of rights and obligations, countries
will
be able to assume different levels of commitment.
Deputy trade ministers are scheduled to meet in Mexico in February. The
negotiators have a little more than a year to deal with the most divisive
issues, such as agricultural tariffs, before their self-imposed January
2005
deadline to finalize the pact.
For Florida's sugar and citrus industries, trade issues will continue
to
consume time, energy and dollars -- potentially for decades.
The fear is that the state's 450,000 acres of sugar cane, the source
of
income for 25,000 Florida farm families, could lose its market if more
foreign sugar is allowed.
The United States imports 1.25 million tons of sugar each year. Industry
concerns that those figures could grow deepened this week, as U.S. Trade
Representative Robert Zoellick said the United States will initiate
bilateral trade agreements with six more sugar cane-growing countries.
"I came in here with an awful lot of concern about market access
being discussed at a time when we have a declining market," said
Robert Coker,
senior vice president for Clewiston-based U.S. Sugar Corp. "I am
leaving
with the same concerns. Sugar tariff reductions are still not off the
table."
For their part, Florida citrus growers say the world-trade playing field
is
made more level by the 29.7-cents-a-gallon tariff on orange juice from
Brazil, the world's largest orange juice producer and exporter.
They believe their strongest argument for not trading away the tariff
is
that, without it, Florida growers would be forced out of business by
cheaper
Brazilian juice, leaving Brazil as an orange-growing monopoly.
While the citrus industry is pleased that U.S. trade negotiators said
privately this week the citrus tariff could be intact for at least another
10 years, there's no guarantee that won't change.
Terry McCoy, director of the Center for Latin American Studies at the
University of Florida, said Florida citrus should begin preparing for
an
eventual end to the tariff, because free trade is all about market access.
"
Ultimately, the citrus tariff will have to go," McCoy said. "What
is
negotiable is the terms under which it goes."
Some growers got their message directly to trade ministers Wednesday
night
during a dinner party at Vizcaya.
Ric Freeman, 45, a third-generation orange grower from Orlando, and his
wife, Tina, don't usually attend such events, but they feel the future
of
their groves hinges on preserving the tariff.
Freeman owns 300 acres in Winter Garden. His 70-employee harvesting company
P.H. Freeman & Sons Inc. brings in about 1 million boxes a year from
his own
and other groves.
"I know if we lose the tariff my business will not survive," Freeman
said.
Also in Miami this week were two busloads of about 80 sugar company union
workers from West Palm Beach-based Florida Crystals Corp. and U.S. Sugar.
They marched alongside steelworkers and others Thursday.
"If they take away all the sugar tariffs, our industry will be devastated," said
Angel Echenique, 48, a Florida Crystals field mechanic.
"With these kinds of free-trade agreements, it's like creating two
classes of people in the United States, the rich and the poor."
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