Chile pushes for more U.S. tariff exemptions for fruit exports

According to Frutas de Chile, the country’s fruit export sector is backing the government’s approach in its tariff negotiations with the United States, where many Chilean products currently face a general 12.5% duty.

The industry group believes the best option is to negotiate exemptions product by product rather than seek a return to zero tariffs across the entire Chile-U.S. free trade agreement. This approach has already resulted in exemptions for Chilean avocados, kiwifruit and oranges.

Chile has asked the United States to add around 900 products to its tariff-free list. One of its arguments is that Chilean fruit plays a useful role in the U.S. market because much of it arrives during the Northern Hemisphere’s off-season.

At present, about 53% of the value of Chilean exports to the United States is exempt from tariffs. The government and export sectors are now trying to increase that share, with fruit and seafood among the products of particular interest.

The talks are expected to continue online over the coming two weeks. U.S. officials are due to respond to Chile’s proposals and supporting data with a revised offer, after which the Chilean side will decide whether the new terms are acceptable.

Frutas de Chile president Iván Marambio said the organisation sees the product-by-product strategy as the most practical way to secure additional exemptions under the current U.S. trade policy.

source and photo: frutasdechile.cl