WASHINGTON (Reuters) - The United States imports $2 worth of horticultural products from the Western Hemisphere for every $1 it exports, the Agriculture Department said on Monday in a look at one aspect of pan-American trade talks.
Trade ministers from 34 countries with more than 800 million people met a month ago for negotiations toward a Free Trade Area of the Americas (FTAA) by 2005. It would be the largest free-trade region in the world.
"The large trade gap has raised concerns between U.S. producers and traders," USDA said in a monthly report on horticultural trade. USDA devoted 11 pages to describing trade factors and key products.
The FTAA was likely to be a topic during policy debate among U.S. farm groups this winter.
Horticultural exports account for a quarter of U.S. farm exports to Western Hemisphere nations and a similar portion of imports from the region.
In 2001, the horticultural exports totaled a record $5.1 billion, a gain of $1 billion in four years. But U.S. imports reached $10 billion the same year, half of it in fresh fruits and vegetables.
"Many (U.S. growers) have questions on the potential competitive advantage many Western Hemisphere countries may get from the agreement and its adverse effect on U.S. fruit and vegetable trade," USDA's Foreign Agricultural Service wrote.
"Moreover, the U.S. horticultural sector is skeptical about an FTAA since there is perception that past U.S. trade agreements have not fulfilled their expectations."
U.S. tariffs on horticultural goods are among the lowest in the world, FAS wrote, "and, as such, domestic producers have to compete without the benefit of tariff protection."
"On the other hand, many countries impose high tariffs and other types of trade barriers that hamper the competitiveness of U.S. horticultural sales. An FTAA that could provide meaningful and equal access to U.S. shippers will be the key for U.S. horticultural sector's unconditional support for this or any other future trade agreement."
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