Posts Tagged “tariffs”
U.S. apple exports to Mexico could should increase this season even Mexico is expected to have a larger crop.
The USDA’ s fresh deciduous report for fresh deciduous fruit for Mexico said although Mexico’s apple production is up 24 percent the removal of the 20 percent tariff last May could boost U.S. exports there.
The tariff was in place for nearly a year, as a retaliatory measure against U.S. tariffs on Mexican steel and aluminum. Mexican imports of U.S. apples dropped nearly 16 percent during this period in comparison to marketing year 2017-18, the USDA re;ported.
Mexican consumers remain price sensitive purchasers of fruit, according to the report.
With lower apple prices for marketing year 2019-20, the USDA said apple consumption in Mexico is expected to rebound, resulting in a slight decrease to pear consumption.
Mexican grape exports are forecast at high levels for the 2019-20 season.
The state of Sonora accounts for 85 percent of total table grape production in Mexico, and and 77 percent of the total planted area. Sonora
has increased plantings over 20 percent in the last three years.
By the Washington Apple Commission
Wenatchee, Washington State, USA – In response to the Trump Administration’s tariffs on aluminum and steel, Mexico has announced effective immediately imports of apples from the U.S. would be subject to a retaliatory tariff of 20 percent. Under WTO rules, countries hit with unilateral tariffs are allowed to levy tariffs equivalent to the amount of injury. Apples are just one item on the list of U.S. products that Mexico is targeting.
Washington State, home to over 1,300 apple growers, is the source of almost all apple exports to Mexico. The state produces approximately 65 percent of all apples grown in the US and over 90 percent of U.S. fresh apple exports. Mexico is the top export market for Washington apples, and during the 2016-17 season Washington growers shipped 13.7 million 40 lb. bushel cartons valued at more than $215 million to the market. During the current season, shipments have been ahead of last season by 13 percent and were on track to exceed 15 million bushels, worth an estimated $241.8 million. This new tariff now puts that goal in doubt.
“Any tariff is clearly going to have economic impact to our industry – especially when you consider its cumulative effect along with the tariffs imposed by China and expected within the next few weeks from India, also major Washington apple export markets, in retaliation to U.S. steel and aluminum tariffs” stated Todd Fryhover, the President of the Washington Apple Commission. “The economic impact to individual growers will vary depending on the strategic importance of Mexico to their sales, but collectively Washington apple growers will see a decrease in what they are paid for their crop due to the 20 percent duty.”
The Washington Apple Commission is the international marketing arm of the Washington apple industry and conducts promotions in foreign markets to drive consumer demand for apples from Washington State, USA. Washington Apple Commission provides promotional support to international retailers, wholesalers and importers with innovative marketing programs and activities to grow consumer awareness and brand loyalty.