Tuesday, February 01, 2005

New Trade War Starting March 1

The United States Trade Representative notified the World Trade Organization of its intent to impose retaliatory tariffs on certain products from the European Union, in a disagreement over the EU’s new rice import policy. Last year, the EU raised import tariffs on brown rice from the levels which it agreed to as part prior negotiations. These duty increases, which could be effective as early as March 1, could affect up to $33 million worth of imports from the EU of some or all of the following products (the retaliatory duty rates are shown below the item list):

• yogurt, not in dry form, whether or not flavored or containing added fruit or cocoa (HTS# 0403.10.90)
• processed cheese (including mixtures), nesoi (not otherwise specific or included), n/o 0.5% by weight butterfat, not grated or powdered, subject to HTSUS Chapter 4 US Note 23, not General Note 15 (HTSUS 0406.30.85)
• witloof chicory, fresh or chilled (HTSUS 0705.21.00)
• Brussels sprouts, uncooked or cooked by steaming or boiling in water, frozen, not reduced in size (HTSUS 0710.80.65)
• mandarins, including tangerines and satsumas, clementines, wilkings, and similar citrus hybrids, fresh or dried (HTSUS 0805.20.00)
• paprika, dried or crushed or ground (HTSUS 0904.20.20)
• saffron (HTSUS 0910.20.00)
• artichokes, prepared or preserved by vinegar or acetic acid (HTSUS 2001.90.25)
• truffles, prepared or preserved otherwise than by vinegar or acetic acid (HTSUS 2003.20.00)
• antipasto, prepared or preserved otherwise than by vinegar or acetic acid, frozen (HTSUS 2004.90.10)
• olives (not green) in a saline solution, canned, not pitted (HTSUS 2005.70.50)
• olives (not green), in a saline solution, in airtight containers of glass or metal but not canned (HTSUS 2005.70.70)
• olives (not green) in a saline solution, not canned, nesoi (HTSUS 2005.70.75)
• sauerkraut, prepared or preserved otherwise than by vinegar or acetic acid, not frozen (HTSUS 2005.90.30)
• peaches (excluding nectarines), otherwise prepared or preserved, nesoi (HTSUS 20087020)
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Subheading 0403.10.90: Yogurt: 40 percent (presently 17 percent)
Subheading 0406.30.85: Certain processed cheeses: 55 percent (presently 10 percent)
Subheading 0705.21.00: Witloof chicory: 1.36 cents per kg (presently 0.15 cents per kg)
Subheading 0710.80.65: Brussels sprouts: 75 percent (presently 13 percent)
Subheading 0805.20.00: Mandarins: 3.3 cents per kg (presently 1.9 cents)
Subheading 0904.20.20: Paprika: 3.4 cents per kg (presently 3 cents per kg)
Subheading 0910.20.00: Saffron: 20 percent (presently 0 percent)
Subheading 2001.90.25: Artichokes: 55 percent (presently 10 percent)
Subheading 2003.20.00: Truffles: 20 percent (presently 0 percent)
Subheading 2004.90.10: Antipasto: 50 percent (presently 3 percent)
Subheadings 2005.70.50, 2005.70.70 and 2005.70.75: Olives: RETALIATION LEVEL NOT YET ESTABLISHED
Subheading 2005.90.30: Sauerkraut: 75 percent (presently 5 percent)
Subheading 2008.70.20: Peaches: 55 percent (presently 17 percent)

We will pass along further information as it becomes available.