(Jan. 24, 2020) – It’s no secret that today’s export markets for California almonds are experiencing a most challenging time due to the current trade environment.
“Despite the significant impact of the retaliatory tariffs in China, California almonds were able to be diverted to other countries, leveraging the global consumer demand that has been created," said Julie Adams, ABC's VP of Global Technical and Regulatory Affairs at The Almond Conference 2019.
Such challenging “chaos” was the focus of a session titled “Tariffs and Trade: Chaos Theory on a Global Level” at The Almond Conference 2019, held in Sacramento last December. During the session, speakers Julie Adams of the Almond Board of California (ABC), USDA Special Trade Advisor Jason Hafemeister and Cynthia Xing of Yuan Associates gave industry members context and information on how to best address the current trade environment and enjoy continued success:
- Appreciate strength in diversity: Almonds are shipped to 100 countries, with each market having its own unique trade and technical issues that impact shipments. With about 70% of the almond crop exported, Adams noted the almond industry has found strength in its diversification across several markets, citing the importance of collaboration. “Despite the significant impact of the retaliatory tariffs in China,” Adams noted, “California almonds were able to be diverted to other countries, leveraging the global consumer demand that has been created.”
- Pick up the phone: Hafemeister identified the top six export markets that account for 60 percent of total US ag exports: China, Canada, Mexico, the EU, Japan and South Korea. With Canada and Mexico included in this list, the importance of passing the United States–Mexico–Canada trade agreement (USMCA) is clear, and he encouraged industry members to contact their representatives in support of the agreement.
- Stay informed: Hafemeister also informed industry members that while the EU has been a successful market for soybeans and almonds, other commodities have not fared so well. “There are lots of opportunities in the EU, but it can be very frustrating,” he said. He also spoke of the importance of the trade agreement with Japan to reduce the significant trade barriers many commodities, including almonds, face without the agreement.
However, as the industry looks at the global trade environment it is important to note that other countries are also looking to maximize their trade position. “Many of the priorities expressed by the U.S. are no different than China’s view to promote Chinese products and ensure fair treatment,” said Xing. U.S.-China trade talks are difficult from the Chinese perspective, as well, and unfortunately the increasingly politicized negotiations and rising nationalism on both sides have made it difficult to ensure “face” is saved in both markets.
Focus on bilateral agreements versus a broader multilateral approach may be the new normal, but ultimately finding that “win-win” solution is essential to long-term and sustained market growth.
Industry members with additional questions on information shared during this session are encouraged to reach out to Julie Adams, vice president of Global Technical and Regulatory Affairs at the Almond Board, at jadams@almondboard.com.
