US citrus imports not expected to impact the domestic industry following tariff cuts
Taiwan’s Ministry of Agriculture has moved to subdue speculation that a reduction of the tariff on US mandarins under the recently signed Taiwan-US Agreement on Reciprocal Trade will affect the domestic citrus industry.
According to a report from the Taipei Times, the Ministry responded to fears of any fallout once the tariff on US mandarins drops from 35 per cent to 10 per cent. It said the low volume of US imports, staggered selling seasons and large price difference should result in little impact for local growers.
Data from Taiwan’s Agriculture and Food Agency showed that annual mandarin import volume has averaged 6,081 tonnes over the past five years; of this, 1,115 tonnes were from the US, accounting for only 1 per cent of domestic consumption.
The Ministry noted US mandarins are imported into Taiwan from March to May annually, which is not the primary harvest season of domestically grown fruit. Instead, US-grown mandarines fill a gap in the market. This could also be seen in the price difference, the Ministry argued. It said US mandarins were currently priced around NT$94/kg (US$3), which should drop to around NT$77/kg under the new tariff. A significant difference from the domestic farm-gate price of approximately NT$45/kg.
The Ministry also highlighted the competitive edge of local produce in terms of freshness, flavour and supply stability.
The Taiwan-US Agreement on Reciprocal Trade was announced in February, but still must pass through the legislature for review before it is approved and enters into force
