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CITRUS
INDUSTRY BELIEVES TARIFF WILL ESCAPE PACT
Publication:
Palm Beach Post
Printed: Thursday, June 3, 2004
Written by: Susan Salisbury |
Florida's citrus industry believes a 29.7-cents-a-gallon
federal tariff on
orange juice from Brazil could be safe.
U.S. negotiators working on the proposed Free Trade Area of the Americas
pact have indicated they intend to leave some import-sensitive agricultural
products off the table but did not specifically list the products, according
to reports published after a May 21 meeting between U.S. and Brazilian
negotiators.
"
It definitely shows a recognition of the trade sensitivity of citrus
as we
go forward," said Andy LaVigne, chief executive officer at Florida
Citrus
Mutual.
Robert Coker, senior vice president of U.S. Sugar Corp. in Clewiston,
which
owns Southern Gardens Citrus, said U.S. negotiators previously had said
that
no agricultural products would be exempt from the FTAA.
"They have now given a fairly clear signal that there will be
import-sensitive commodities that will be exempted," Coker said. "Brazil
was
pretty unhappy about that."
Brazilian officials did not return calls for comment Wednesday. Brazil's
FTAA co-chair Adhemar Bahadian called the U.S. proposal "unpleasant" and
a "surprise" when it was first discussed in May, according
to Reuters.
Although it's not clear which products will remain protected by trade
barriers, the assumption both sides are making is that orange juice probably
will be one of them.
At November's FTAA talks in Miami, negotiators agreed to a two-tiered
agreement, sometimes referred to as "FTAA lite," that allows
countries to be
part of either a basic agreement or a more detailed agreement.
Market access is one of the many issues under discussion, said an official
with the U.S. Trade Representative's office, who, under diplomatic custom,
cannot be identified by name.
"How do you bring that into conformity with the Miami framework
with the two
tracks?" the official said Wednesday. "The U.S. recently put
forward a
proposal to Brazil to ensure sufficient flexibility so the parties can
agree
on a common set of rights and obligations.
"It is our view that the scope of rights, i.e., what you are getting,
must
be synchronized with the scope of obligations you are giving," the
official
said. "The ambitions level must be balanced. It is only natural
that now in
this two-track approach the common set will be more limited."
Florida growers contend that any reduction in the tariff would devastate
the
unsubsidized Florida orange juice industry and create a monopoly for
Brazil,
the world's largest orange juice producer.
The U.S. and Brazilian co-chairs of the proposed 34-nation FTAA began
talks
again Wednesday in the Argentine capital of Buenos Aires.
Trade ministers had a major summit in Miami in November and are expected
to
continue negotiations in Brazil in July or August.
Chris Slevin, spokesman for Washington, D.C.-based Public Citizen's Global
Trade Watch, said the less Brazil and other countries have to gain from
increased market access for agricultural products, the less an FTAA makes
sense for them.
"It comes down to a question of: 'What do they have to gain by this
approach?' " Slevin said.
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