Fruit Industry Leaders Hail China Trade Deal
January 16, 2020 Fruit industry leaders were among those on hand Wednesday in Washington, DC, for the signing of the U.S.- China Phase One Trade Agreement. Both USApple Chairman Jeff Colombini and California Fresh Fruit Association (CFFA) Chairman Randy Giumarra were among the 200 individuals invited to attend the China Phase One trade deal signing at the White House.
In press releases from their organizations, Colombini and Giumarra commended both the agreement and President Trump.
“It was a real honor for USApple to be invited by the White House to this important ceremony,” said Colombini, a third-generation California grower and President of Lodi Farming, Inc. “Today’s agreement in which China is committing to large purchases of U.S. agriculture products is positive news. The U.S. apple industry very much wants to supply that market.”
Said Giumarra: “On behalf of the California fresh fruit industry, we are grateful to President Trump and his entire negotiating team for reaching a Phase One trade deal with China. It is a promising first step, which we are confident will result in lower tariffs and increased grape and stone fruit sales to this valuable market.”
The U.S. apple industry finally achieved full access to the Chinese market in 2015. Exports grew to 2.5 million boxes per year, making China the apple industry’s sixth largest export market. But, according to USApple, continued retaliatory tariffs — now at 50 % — imposed by China on U.S. apples, on top of already existing 10% tariffs, preclude growers from getting back into the China market. This is a substantial concern for the industry as China was an emerging market and one the industry viewed as having significant growth potential. USApple is optimistic that the signing of the U.S.-China agreement will help pave the way toward removal of the tariffs.
“We congratulate the administration for negotiating and concluding this important agreement and look forward with expectation that China’s retaliatory tariffs on our apples will be removed,” said USApple President and CEO Jim Bair. “China doesn’t grow the new and exciting varieties we do, and we know their consumers want them, so we’re ready to roll.”
Prior to China’s retaliatory tariffs, Chinese importers were buying premium quality U.S. apples at top prices. “We were competing and winning with China,” continued Bair. “It was a real bright spot on the horizon. We are now hopeful that China will remove its tariffs, allowing U.S. growers to get back to doing what they do best — providing superior quality apples in a volume and range of varieties not available anywhere else.”
Giumarra, whose organization represents growers, packers, and shippers of California table grape, blueberry, kiwi, pomegranate, and deciduous tree fruit, said since the tariffs have been put in place, China has dropped from the third largest California table grape export market to the seventh. In 2019, the total volume of grapes shipped to China was down 83% from the previous year.
“In 2018, the table grape industry experienced an $80 million decline in crop value, primarily due to the impact of the trade war with China. Additionally in 2018, California plums saw a $28 million decline as a result of the Chinese tariffs,” said Giumarra. “While the agriculture industry looks forward to a permanent solution that allows us to increase exports to this growing market, we believe Phase One will help farmers. This in turn generates more rural economic activity and promotes job growth. Our members look forward to working with the administration to find the final resolution that is good for our country and for American agriculture so we can ship fresh, healthy fruit to consumers in China and the rest of the world.”
CFFA President Ian LeMay said, “The signing of Phase One today comes much to the delight of the California fresh fruit industry. Tariff mitigation in all its forms has been very helpful to producers in California. CFFA would like to thank the administration for its continued focus on this issue and looks forward to the president’s continued leadership in negotiating a deal that includes getting the tariffs removed.”
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