FOLSOM, Calif. (April 14, 2016) – The California walnut industry welcomed the news of the proposed Trans-Pacific Partnership (TPP) Agreement which is expected to reduce or eliminate trade barriers in the Asia Pacific Region.
Under the terms of the proposed agreement between Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam, tariffs on walnuts would be reduced or eliminated in Japan, Malaysia, Vietnam and New Zealand. Walnut exports to the TPP region reached $392 million in crop year 2014/15, accounting for 16% of the industry’s total shipments.
The walnut industry stands to immediately benefit from the agreement, as tariffs in Japan, the industry’s 3rd largest export market, will drop from 10% to zero. “Duty relief provides a tremendous opportunity to further grow an important and established market. Over the past four decades the industry has made significant investments to expand the market and we eagerly anticipate the new opportunities for growth the TPP agreement provides,” states grower John J. (Jack) Gilbert, Chairman of the California Walnut Commission’s (CWC) Issues Management Committee.
“Enhancing California walnut competitiveness is a priority for the CWC”, states grower Jack Mariani, Chairman of the California Walnut Board Market Development Committee. “The TPP will benefit U.S. agriculture and specifically California walnuts, by leveling the playing field amongst producers providing equal access for California walnuts.”
Walnut grower and former CWC Chairman William (Bill) Tos expressed, “great gratitude to the dedicated negotiating team at the United States Trade Representative (USTR) who have worked tirelessly to gain agreement amongst TPP partner nations. This agreements proposed duty reduction will mean that California walnuts are a better value to end users of our product, thereby increasing demand and future consumption.” California’s 4,000+ walnut growers and 94 handlers (processors) look forward to the ratification of the agreement which must now move the through the approval processes by each country and, in the U.S., debated and passed by Congress.
California Walnut Commission
The California Walnut Commission, established in 1987, is funded by mandatory assessments of the growers. The Commission is an agency of the State of California that works in concurrence with the Secretary of the California Department of Food and Agriculture (CDFA). The CWC is mainly involved in health research and export market development activities.