LAKELAND, Fla. – September 16, 2003 – Further steps were taken last week to preserve the citrus tariff as Andy LaVigne, executive vice president/CEO of Florida Citrus Mutual, attended the World Trade Organization meeting in Cancun. The five day discussion was held to reduce trade barriers between WTO countries.

What Happened at the World Trade Organization (WTO) Meeting in Cancun?

The progress that negotiators had hoped to make on the trade talks in Cancun collapsed in a very heated dispute when developed and developing countries failed to bridge their differences over agriculture issues, particularly farm subsidies and market access. While some progress was made in these areas, the talks ultimately failed because of the "Singapore issues," named because they were first raised during trade talks in Singapore in 1996. These issues include investment rules, competition, government procurement, and trade facilitation.

How Does This Affect the Citrus Tariff Preservation Effort?

Since the negotiations collapsed, progress on the WTO talks has come to a halt, which is a favorable position for citrus for now. Because we are still unsure how this will affect upcoming talks, such as the Free Trade Area of the Americas (FTAA), and future WTO meetings, the tariff preservation effort must remain vigilant.

What is the Next Step For the WTO?

The WTO Director instructed the trade officials of the WTO member countries to continue working on the issues for the framework and schedule a meeting of the General Councils of Trade Ministers in Geneva before Dec. 15, 2003.

What Role Did the Florida Citrus Industry Play in Cancun?

The Florida citrus industry had a strong delegation in Cancun during the trade talks. They met with other citrus-producing countries, such as Coast Rica, Mexico and Belize, and spoke with members of the European Union delegation. In addition, they met with Representatives and Senators from U.S. House and Senate Committees. Their message was clear: no reduction of the U.S. tariff for imported citrus products due to the unique nature of the commodity (only two players in the world market: Florida and Brazil).

What is the Next Step For Citrus?

The Citrus Tariff Oversight Committee (CTOC) and industry leaders will now turn their attention to the upcoming FTAA trade talks, which will take place in Miami in November. These talks will include trade negotiations between North, Central and South America. Obviously, Brazil will be a key factor during these discussions, and citrus officials are determining the best strategy for these negotiations.

In addition, the CTOC will evaluate the results of the WTO Cancun conference and stay involved in the on-going discussions in Geneva in the event progress is made to further develop an acceptable framework agreement to move the WTO negotiations forward. The CTOC will meet again on Sept. 19.