ARARAQUARA, Brazil, Nov. 2 (UPI) -- Under the principles of free trade, Brazil's growing orange industry could finish off its counterpart in Florida.
The orange argument is turning into a trade battle between the two giants of the orange world which together account for 85 percent of all citrus concentrate production, the Miami Herald said in a report Sunday.
At the heart of the dispute is a U.S. tariff of about eight cents a liter on imports of orange juice concentrate that has helped keep Florida growers in business since it was implemented by Congress in 1930.
But there is little doubt lowering U.S. barriers to imports would be a boon to the Brazilians, the Herald said. But that would be catastrophic for Florida's iconic industry, which employs 90,000 people, has annual sales of $1.6 billion and holds 800,000 acres of green space, the report said.
Although Florida's citrus industry is confronted with the lowest orange prices in decades, Brazilian grower Nivaldo Castanharo said he too is struggling to survive.
He explained how the Brazilian orange market is saturated, less lucrative than in past years and desperately seeking to expand.
It cost $2.70 last year to produce a 90-pound box of oranges, which sold for $2.80, said Castanharo. But, with more access to the U.S. market, he figured he could get $4 a box and still undersell Florida's growers.
Brazil is demanding greater access to U.S. agricultural markets as part of the hemisphere-wide Free Trade Area of the Americas agreement sought by Washington.
Miami will host a cabinet-level FTAA negotiating session Nov. 20 to 21.
The FTAA would create a 34-nation, $13 trillion trading bloc by 2005 that would phase out most barriers to foreign trade and investments and, its advocates argue, help all member nations by increasing trade across the board.
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