Potato Grower

WWW.POTATOGROWER.COM 45 Eastern Idaho Ag Expo Idaho Potato Conference For More Information Call 208-939-6426 40 th Annual 51 st Annual 40 th Annual Eastern Idaho Ag Expo Jan. 22-24, 2019 HOLT ARENA Pocatello, ID Tuesday - 9 a.m.- 5 p.m. Wednesday - 9 a.m.- 5 p.m. Thursday - 9 a.m.- 1 p.m. 51 st Annual Idaho Potato Conference and Trade Show Jan. 23-24, 2019 I.S.U. Student Union Building Pocatello, ID Wednesday - 8 a.m. - 5 p.m. Thursday - 8 a.m. - 12 p.m. 1963-7SpectraProductions13s.indd 1 9/13/18 2:18 PM 168521MicTra13s.indd 1 11/20/17 1:29 PM U.S. frozen exports to Mexico in 2017 totaled $155 million, meaning the new duty could result in an $80 million loss if similar levels of decline occur. In China, the second round of retaliatory tariffs in response to the Section 301 tariffs from the U.S. will include an additional 10 percent tariff on frozen and a 25 percent tariff on dehy. U.S. growers already face higher tariffs in some markets due to the lack of trade agreements. The U.S. currently has 14 trade agreements in place covering 20 countries. By comparison, the EU has 25 agreements covering 33 countries, and Canada has 13 agreements covering 45 countries. Unfortunately, our deficit is about to increase as the EU has completed negotiations with Japan and Vietnam and has negotiations underway with Mexico, the Philippines and Indonesia. The U.S., by contrast, has no new trade agreements in process. The most concerning example of a situation where we will be facing a higher tariff is in Japan, our largest export market. Japan has finalized a free trade agreement with the EU, which should go into effect in 2019. Under that agreement, the 8.5 percent tariff on frozen will be eliminated in four years. The same tariff reduction will take place under the CPTPP agreement which includes Canada, New Zealand and Australia. By 2022, frozen exports from all these major competitors will enter Japan duty-free, while U.S. product will still face the 8.5 percent tariff. Back to the positive side of the equation, the U.S. potato industry is increasingly embracing export opportunities. The U.S. frozen processors are responding to increased international and domestic demand by bringing on significant new capacity in 2019/20. Additionally, improved phytosanitary access for U.S. fresh potatoes to Japan, Korea, Myanmar and Indonesia has been achieved this past year. Potatoes USA continues to invest heavily in marketing programs in Asia and Latin America, focusing increasingly on U.S. market share through "Why Buy U.S.?" messaging and value-added programs supporting the purchase of U.S. products. The question, of course, is "Will it be enough to overcome the challenges?"

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