Although California citrus growers were hoping that the Phase One trade deal with China would boost their export prospects, this appears not to be the case.
US citrus exports to China continue to trade subject to a 70% tariff, most of which was imposed to retaliate against Trump administration levies on Chinese goods beginning in March 2018. The resulting slump in exports forced more fruit onto the domestic market, causing a 10% drop in prices for navel oranges, the leading California citrus commodity. Navel prices are down by one-third since the 2017-2018 growing season.
China citrus exports
For a long time, China has been among the top five export destinations for California’s fresh citrus, but the most recent shipping season saw a drop of an estimated 50%. “Exports to China have slowed significantly and have put downward pressure on the domestic market,” said Casey Creamer, president of California Citrus Mutual, a trade association advocating for commercial citrus growers. “Pricing last year was the worst we’ve seen in recent memory.
“It is vital that fresh citrus is included in any Chinese purchases of American agricultural products,” wrote Kevin McCarthy, the House Republican leader -representing California’s 23rd district in the Central Valley- to USTR Robert Lighthizer. “This would not only help ensure that California fresh citrus retains a presence in China, but would also mitigate the negative impacts growers experience due to Chinese tariffs on American fresh citrus.”
Protocol for exporting Californian nectarines to China nearer
It’s unclear how the US would enforce any of the buying levels spelled out in Phase One, let alone for citrus which is not even mentioned in the agreement. On the other hand, the agreement does loosen restrictions on other agricultural commodities, paving the way for increased US exports to China.
Chapter 3 Annex 11 Article 6 of the agreement provides that within one month of the deal going into effect, China’s General Administration of Customs (GAC) and the US Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) will implement a phytosanitary protocol to allow the importation of Californian nectarines into China.
As explained on ajot.com, Articles 7 and 8 call for APHIS and GAC to implement protocols within three months to permit the importation of US blueberries and Californian Hass avocados into China. All that is great news for American growers of blueberries, nectarines, and avocados, but it doesn’t do anything for citrus growers.