China Finally Opens Its Market to First U.S. Citrus Since 1980

The first shipment of California oranges to Shanghai and Beijing in 20 years will be loaded onto a cargo ship Friday now that the Chinese government has issued long-awaited rules opening its market to U.S. citrus fruit.

The rules mark the last step in implementing an agreement reached between the U.S. and China almost one year ago that allowed citrus, meat and wheat into that country, a major step toward cementing U.S.-China trade relations.

U.S. Agriculture Secretary Dan Glickman and U.S. Trade Representative Charlene Barshefsky hailed the action in a joint statement, saying it gives U.S. farmers and ranchers a “tremendous opportunity to significantly increase export sales to the world’s most populous country.”

Trade officials claim it should also help the Clinton administration convince Congress to grant China permanent normal trade relations status this spring, a prerequisite for U.S. growers to be able to benefit from China’s World Trade Organization membership.

It will be the first time that California growers have been able to ship to China since 1980, when their fruit was quarantined because of Mediterranean fruit fly infestations.

It’s welcome news for California citrus growers, who have struggled with lower prices and increased competition from imports in recent years.

Sunkist Growers, a cooperative of 6,500 growers in California and Arizona, estimates the deal will mean almost $500 million in new business for its growers over the next five years.

“China has all the potential to be a huge market for us, as citrus is very popular with Chinese consumers,” said Vincent Lupinacci, the cooperative’s president, in a statement.

The agreement allows U.S. growers to export citrus based on U.S. agricultural standards. It also reduces Chinese tariffs from the current 40% to 12% by no later than 2004.

Shipments from California, Arizona, Texas and Florida will be phased in county by county over the next two years, starting with Tulare County fruit that will be loaded onto a cargo ship at the Port of Long Beach on Friday.

California growers were initially skeptical that China, which has a spotty history of upholding trade agreements, would fulfill its part of last year’s trade pact.

Indeed, the deal seemed on the verge of unraveling last fall. Although farm groups were told the pact was finalized, Chinese officials said they wouldn’t act on it until Congress approves normal trade status for China.

Moreover, China’s vast network of private traders was reluctant to make purchases until Chinese port officials were officially informed of the changes made by last year’s agreement.

Only after a delegation of Chinese agricultural officials inspected the Port of Hueneme and local citrus groves in January did the state’s growers begin to believe that the Chinese market would be reopened for their fruit.

Now most are optimistic that the deal will improve their long-term outlook.

“It’s a huge, huge market,” said Nick Hill, a Fresno-area orange grower. “If even a small percentage of the [Chinese] population bought California citrus, it would help us out immensely.”