Lemon, Nut Exporters Back U.S. Trade Steps
Although their own industries are expected to be hurt by a round of retaliatory trade action, California walnut and lemon exporters voiced strong support Friday for the U.S. government’s tougher action on imports of European pasta.
The Reagan Administration on Thursday decided to impose sharply higher tariffs on pasta products from the Common Market after failing to convince the Europeans to lower their barriers to U.S. citrus products. The Europeans are expected to retaliate, possibly as early as Monday, by boosting walnut and lemon tariffs.
The domestic support for the U.S. government’s trade action came even though walnut growers expect a tariff hike to cost them $4 million in sales during the rest of the current crop year, said Frank R. Light, president and chief executive of Stockton-based Sun-Diamond Growers of California.
“For 10 years we’ve been demanding, crying, begging, pleading for a strong stand (by the U.S. government),” Light said.
Because of the uncertainty regarding government action, Sun-Diamond told its European clients that it will absorb any tariff increase this year, Light said.
‘Important Step’
That support was echoed in both the citrus and pasta industries.
“It’s an extremely important step,” said William K. Quarles, vice president for government affairs at Sunkist Growers, which accounts for about three-quarters of U.S. lemon exports to Europe. “It tells our trading partners around the world that the United States is going to fight for its rights in the trading market.”
As it happens, lemon and orange exports to Europe, once a major market, have virtually dried up in recent years, in part because of a strong dollar but also because of preferential tariffs extended to Mediterranean citrus growers. The General Agreement on Tariffs and Trade, an international agency that monitors international trade practices, agreed with U.S. growers that the European Economic Community has engaged in unfair trade practices, but GATT’s ruling has so far brought no relief.
Suspended Date
As a result, President Reagan in July imposed higher tariffs on pasta imports but suspended the effective date last Thursday to give the Europeans time to develop a counteroffer. That offer was pronounced “clearly inadequate” on Thursday by U.S. Trade Representative Clayton Yeutter. As a result, the tariff on pasta products made with eggs rose to 25% of the value of the goods, up from 0.25%; the tariff on non-egg pasta, now 0.54%, went to 40%.
The Europeans have threatened to impose the higher duties on U.S. lemons and walnuts if the pasta tariffs were increased as scheduled. Light said he expects the Common Market to retaliate Monday.
“What we’re saying is that, if GATT is meaningless, then let’s know it,” said Eugene Shamoon, president of San Fernando-based Paramount Citrus Assn.
The news was also welcomed by domestic pasta makers, who maintain that the Common Market subsidizes pasta manufacturing to the extent that it can be delivered to New York at less cost than it can be made in this country.
Italian pasta has “inundated” the East Coast and put some small domestic manufacturers out of business, said Sid Borie, vice president for sales at Anthony Macaroni Products in Los Angeles.
