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 »
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 »
When President Obama signed the Food Farm and Jobs Act on February 7th he directed his Administration, working through the White House Rural Council, to lead a new “Made in Rural America” export and investment initiative. Specifically, the President has instructed his Rural Council – in coordination with the U.S. Department of Agriculture, the U.S. Department of Commerce, the Small Business Administration, the Export-Import Bank, the Office of the United States Trade Representative, and other agencies – to commit to connecting more rural businesses of all types to export information and assistance.
One example of what USDA will do in support of the Made In Rural America export and investment initiative is host training sessions to equip local USDA Rural Development staff in all 50 states plus territories with the tools they need to counsel businesses on export opportunities and resources. The Department of Commerce, through the Trade Promotion Coordinating Committee, will cross-train USDA Rural Development staff so they can better deliver support or refer rural businesses to federal services.
The blog below, cross-posted from the White House Rural Council blog, highlights the impact that the Made In Rural America Initiative will have with our partners at the Appalachian Regional Commission. Read more »
On February 20, Agriculture Secretary Tom Vilsack is expected to host two Future of Agriculture panels at the 2014 Agricultural Outlook Forum, “The Changing Face of Agriculture.” On the “Future of Agriculture: Building Markets Here & Abroad” panel are Dr. Rajiv Shah, Administrator, U.S. Agency for International Development; Paul Schickler, DuPont Pioneer President; Kellee James, Founder, CEO, Mercaris; and Cathy Burns, President, Produce Marketing Association. Topics discussed will be import/export markets, market trends, food security, technology, and innovations in agriculture.
Secretary Vilsack also is slated to moderate a second panel, the “Future of Agriculture: Young Farmers – Unlimited Opportunities” to explore the challenges, sustainability, and achievements of today’s young farmers. Panelists include: Joanna Carraway, Top Producer Horizon Award; Michael O’Gorman, Executive Director, Farmer Veteran Coalition; Greg Wegis, National Outstanding Young Farmer Award; and Emily Oakley, Interim Director, National Young Farmers Coalition. Read more »
Today, the Office of the U.S. Trade Representative (USTR) released three reports to Congress detailing the Obama Administration’s work to reduce or remove key foreign government barriers to American exports. The reports describe how the Administration has fought for American jobs over the last year by working to reduce or eliminate unwarranted sanitary and phytosanitary (SPS) and technical barriers to trade (TBT) as well as other significant barriers to American exports.
Just a few weeks removed from the historic implementation of the U.S.-Korea trade agreement, and as our officials wrap up USDA’s largest-ever agricultural trade mission to China today, we are reminded that the strength of the U.S. agricultural economy is directly connected to an open system of international trade, free from unwarranted and unjustified barriers. Read more »