Press Release

Sunkist Asks for Fairness for American Citrus Farmers as Argentina Raises Tariffs on Citrus

SHERMAN OAKS, Calif.--(BUSINESS WIRE)--April 27, 2001--Less than 10 months after it was granted virtually duty-free access to the U.S. market for its fresh citrus, Argentina more than doubled the tariff it charges on the U.S. citrus coming into its market.

In August 2000, Argentine citrus was allowed into the U.S. market at a very nominal duty rate of 2.2 cents per kilogram. Last week, Argentina raised the duty it charges U.S. citrus coming into its marketplace from 12% to 25%.

``We believe this tariff increase demonstrates a willful disregard for an improved and reciprocal trading relationship with the United States,'' said Sunkist Growers' Vice President of Corporate Relations Michael Wootton in a letter to U.S. Trade Representative Robert Zoellick.

Argentina's rationale for its action, Wootton said, is to protect its citrus and other produce sectors from foreign competition and to improve its national balance of trade. ``Meanwhile,'' he said, ``American citrus farmers are enduring dramatic competitive changes as citrus imports have increased tenfold over the past five years. U.S. lemon growers were negatively impacted by the large volume of Argentine lemons that came into the U.S. last year, and they will be facing that same competition this year.

``Like Argentina, the United States suffers a significant trade deficit. But unlike Argentina, instead of imposing high duties, the U.S. response has been to liberalize conditions for commercial exchange,'' he added.

Wootton called on the U.S. government to take steps necessary to ``harmonize'' the U.S. tariffs with the new higher-tariff schedule announced by Argentina. ``Sunkist believes deeply in a freer and a fairer global trading environment,'' he said. ``If the U.S. passively accepts the move toward higher duties by Argentina to protect its market, it sends the wrong message to all our trading partners as we move to negotiations on the Free Trade Area of the Americas and the World Trade Organization.

``Why should American-grown fruit face this increased tariff disadvantage in the Argentine marketplace while at the same time Argentine-grown citrus is enjoying improved access to the U.S. marketplace?'' These are questions we want our policymakers in Washington to address.

     Sunkist Growers, Sherman Oaks
     Mike Wootton, 818/379-7340

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