Good Fruit Grower

January 2017

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Page 16 of 39 GOOD FRUIT GROWER JANUARY 1, 2017 17 What TPP would have done T he 12 countries comprising the proposed Trans-Pacific Partnership represent 40 percent of the global economy: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. Under the deal, Japan's 8.5 percent tariff on cherries would have been reduced by half, with the remaining tariff eliminated over six years. Its 17 percent apple tariff would have been cut by 25 per- cent immediately and the remainder eliminated in 11 years. On pears, its 4.8 percent tariff would have been eliminated immediately. Malaysia's 5 percent tariff on apples, pears and cherries would have been eliminated immediately, and Vietnam's 10 percent tariff on tree fruit prod- ucts would have been phased out over three years. Tariffs in the eight other countries are already at zero. —S. Dininny and there is tremendous opportunity for some of the newer varieties that are grown in the U.S. with middle and upper middle class consumers in China, Fryhover said. "That's very exciting." China also is about 10 years behind the U.S. in cherry production; its cherries are not well received in southeast Asia, and even within China, the country's targeted con- sumers are more lower-class than those for U.S. exports, said Keith Hu, director of international operations for Northwest Cherry Growers. "At the moment, I feel pretty safe — we're all right there," he said. "And southeast Asia is a premium mar- ket, with great prices for fruit growers. We really don't have competition there." Then, there's Russia. "They're slapping sanctions on left, right and center without any regard to their obliga- tions on trade agreements," O'Rourke said, noting how Poland was left scrambling to find new markets for its apple crop after Russia banned imports of fresh fruits and vegetables from the U.S. and European Union. "But cutting Europeans from their market, they have created problems around the world." That's why, perhaps, the industry's major marketers are focusing on premium varieties — high-value prod- ucts — that can be sold in the domestic market and Canada, he said. Other areas of concern Continued progress in trade talks with Australia and South Korea will be a focus for the Northwest Horticultural Council in 2017. U.S. apple and pear growers have never had access to Australia, and the industry is working to address plant quarantine concerns to gain it, said Mark Powers, NHC executive vice president. The U.S. already has access for cherries. In South Korea, the council is also working to gain access for apples and pears and to negotiate a systems approach for cherries to eliminate a requirement that the U.S. growers fumigate with methyl bromide. The latter effort also is underway in India. "The model was first successfully adopted with Japan, and we're trying to extend that to other countries so we don't have to rely on methyl bromide as the sole mitigation method for ship- ping cherries to those countries," Powers said. The apple industry also is working to develop a work plan to improve access to Japan for U.S. growers. If there's one thing that can be learned from Poland when its apple market in Russia closed, it's the need to ensure that current U.S. markets remain open — thus highlighting a top priority for the Northwest Horticultural Council in 2017. "We just need to try to maintain our ability to get into those markets without any additional barriers to trade," Powers said. "That could be pesticide MRLs, food safety concerns, labeling, plant pest and disease concerns — all of those regulatory constraints, barriers, that are cur- rently manageable. As long as there aren't any changes, it's really a question of price and quality, and we know our growers can compete." • Northwest FCS Crop Insurance Agents specialize in what they do, with the in-depth knowledge required to guide you through the maze of ever-changing crop insurance rules and regulations. Unlike other insurance providers, our licensed agents focus solely on crop insurance, working full time to help producers manage risk. • Crop Hail • Yield-based Insurance • Revenue-based Insurance Call to see for yourself what sets Northwest FCS apart. 800.743.2125 | Crop insurance is all the same... agents are not.

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