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Category: International

Tracing a Path Out of a Costly Trade Dispute

The trade dispute was resolved after AMS helped the businesses produce paper work and take the South Korean officials on tours of orange juice processing plants. USDA Photo courtesy of Ken Hammond.

The trade dispute was resolved after AMS helped the businesses produce paper work and take the South Korean officials on tours of orange juice processing plants. USDA Photo courtesy of Ken Hammond.

When we shop for items like orange juice at the grocery store, we often take for granted what goes on behind the scenes before we can enjoy these quality foods. Our nation’s producers and processors do not take it for granted. These products represent their livelihood, and the ability to reach new customers—especially through the export market—is critical to their businesses’ success. Recently, the USDA’s Agricultural Marketing Service (AMS) helped four businesses from Florida avert a costly 54% tariff, enabling them to continue to export frozen concentrated orange juice duty free to South Korea.

The US – Korea Free Trade Agreement (KORUS FTA) exempts U.S. orange juice from a 54% tariff when exported to Korea. However, in March 2013 Korean officials questioned the domestic origin of orange juice exported from the Sunshine State to the East Asian country. Without proof that the juice came from the U.S., exporters faced the costly tariff and the volume of exports to South Korea decreased. It was a huge loss for the Florida citrus industry which creates 76,000 jobs and pumps $9 billion into its local economy. Read more »

US – EU Organic Equivalence Trade Arrangement Opens New Markets

Driscoll’s berries being sold in a store (Photograph courtesy of Driscoll’s. Copyright 2014. All rights reserved.)

Driscoll’s berries being sold in a store (Photograph courtesy of Driscoll’s. Copyright 2014. All rights reserved.)

Two years ago this month, the United States and the European Union (EU) implemented an organic equivalence arrangement, meaning products that are certified as organic in the U.S. can also be sold as organic in the EU, and vice versa. This arrangement broke down many of the barriers that organic producers, especially small and medium-sized farmers, were facing in exporting their goods to one of their largest markets. It has also proved to be a good example of how we can recognize each others’ systems and work together across borders to arrive at beneficial agreements.

The U.S. and EU have some of the strongest regulatory protections in the world, and the organic equivalence arrangement recognizes these standards and uses them for everyone’s benefit. Before the agreement, growers and companies wanting to trade products on both sides of the Atlantic had to obtain separate certifications to two different standards, which meant a double set of fees, inspections, and paperwork. Now, if a product is certified organic by one party, it can bear both the USDA organic seal and the EU organic logo, without going through that second certification process. This is possible because the EU and the U.S. have recognized that though our regulatory systems are different, they both produce high quality organic food and agricultural products under rigorous programs. Secretary Vilsack, while addressing the EU agricultural ministers earlier this week, had the same message of cooperation in regards to the Transatlantic Trade and Investment Partnership (T-TIP). Read more »

USDA Working with Serbian Meat Industry to Facilitate Trade

Through USDA, the United States works with countries across the globe to ensure our Nation’s interests are represented in the international meat industry.

Through USDA, the United States works with countries across the globe to ensure our Nation’s interests are represented in the international meat industry.

USDA’s Agricultural Marketing Service has the vital mission helping market American agricultural products competitively in the marketplace.  One way AMS meets this mission is through our globally recognized meat standards.  AMS has participated in the United Nations Economic Commission for Europe (UNECE) for many years to help develop global agricultural quality standards that facilitate trade – essentially ensuring everyone speaks the same trade language.

Recently, AMS traveled to Serbia to provide technical assistance to the Serbian Government and meat industry.  In cooperation with the USDA’s Foreign Agriculture Service (FAS), AMS has worked with Serbia to help modernize their meat standards and specifications. Read more »

Exciting New Markets Open Up For Dairy Farmers Across the U.S.

U.S. dairy exports are currently valued at $6 billion and the country is the world’s leading exporter of skim milk powder, cheese, whey, and lactose products. USDA Photo Courtesy of Scott Bauer.

U.S. dairy exports are currently valued at $6 billion and the country is the world’s leading exporter of skim milk powder, cheese, whey, and lactose products. USDA Photo Courtesy of Scott Bauer.

Every June, USDA joins the rest of the country to celebrate Dairy Month. It is a time to thank our nation’s dairy producers and processors for their tireless work to produce quality dairy products like milk, cheese, and yogurt. Here at USDA, besides getting our fill of our favorite dairy products, we celebrate our nation’s dairy industry every day by finding new markets where people can enjoy their products. This often entails working with other countries’ governments to negotiate export and import requirements as well as helping businesses meet these requirements.

Our nation’s dairy exporters reach new markets with the help of the Agricultural Marketing Service (AMS). Export certificates are often the critical piece in the trade puzzle. On this front, AMS offers certificates for more than 80% of the countries that accept U.S. dairy exports. Our Dairy Programs can verify that businesses’ dairy products meet export requirements. The AMS Dairy Grading Branch provides export certificates for products or conditions for which they have documentation for or from plants they inspect. Read more »

U.S. Showcases Products at Asia’s Largest Food and Beverage Show

FAS Administrator Phil Karsting visits the USA pavilion at SIAL China 2014.

FAS Administrator Phil Karsting visits the USA pavilion at SIAL China 2014.

It seemed as though the entire world was in Shanghai in mid-May, celebrating World Trade Week at SIAL China, Asia’s largest food and beverage trade show. The booming, bustling city was the perfect place for a show of its magnitude, where 99 U.S. companies and organizations showcased their products to the main players from China’s food and hospitality sectors.

The USA Pavilion was the largest international venue at the event and, of the U.S. companies exhibiting there, over half (54) were small or medium-sized businesses, 23 were new to the Chinese market, 16 were minority-owned and nine were completely new to exporting. Read more »

Cultivating Seeds of Success in a Global Marketplace

The international seed trade plays an intricate role in what we call the American way of life, providing us the products we know and love.

The international seed trade plays an intricate role in what we call the American way of life, providing us the products we know and love.

Did you know that corn and soybeans account for 50 percent of the harvested acres in the United States?  Together, these two commodities had $106 billion in sales in 2012—not bad for products that start off as humble seeds.  The U.S. seed industry is valued at more than $7 billion, and accounts for 34 percent of the world’s international seed trade.  Our top seed exports are corn, soybean and sunflower seeds.  And the international seed trade plays an intricate role in what we call the American way of life, providing us the products we know and love.

In today’s global market, limitations in manufacturing capabilities, shifts in climate, or simple geography all impact a country’s ability to satisfy all of its own needs.  This means economies and agriculture systems around the globe are interconnected. Through trade, countries are able to market their resources to boost their economies and ensure access to a stable supply of food and products. Read more »