Just as the pandemc has spiked a second time, the European Union (EU) has imposed a 25 percent tariff on U.S. peanuts and other products. Tyron Spearman reports the market is trying to figure out how to get around the tariffs.
Listen to Tyron’s report.
There are hopes that this will sometime in January. The tariffs went into effect on November 10th as authorized by the World Trade Organization (WTO). This is in retaliation by the EU against the U.S. over government subsidies of Boeing and Airbus.
At the same time the peanut industry has filed a complaint about the United Kingdom, and others, concerning access due to non-tariff trade barriers. This includes inconsistent sampling and testing methods. Changing the sampling from what we do in the United States, rejecting peanuts, and procedures at destination ports that check for apitoxin and pesticide residues. Spearman reports they make the rules as they arrive.
The Direct Tariff Barrier is another example of the EU taking steps to limit the abilty of the U.S, peanuts and agriculture to compete fairly in this key market.
The U.S Peanut Federation said this week they firmly believe U.S. peanuts can compete in an open, fair, and competetive, market. This action by the EU will make U.S. peanuts 25 percent more expensive than any other origin such as Argentina or Brazil.