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Letter to Michael Froman, US Trade Representative, and Thomas Vilsack, Secretary of Agriculture - Opening Foreign Markets to More Concord Grape Juice

Letter

Date: Oct. 30, 2014
Issues: Trade Food Processing and Sales

Dear Ambassador Froman and Secretary Vilsack:

I commend your efforts to achieve a comprehensive and ambitious agreement in extension of the U.S.-Israel Agreement Concerning Certain Aspects of Trade in Agricultural Products (ATAP) and I write to urge the USTR and USDA prioritize the elimination of Israel's grape juice tariff in the ongoing negotiation.

As you know, the U.S. has eliminated its tariff on grape juice from Israel and faces a competitive disadvantage to the European Union's (EU) producers in Israel's market as a result of the preferential quota treatment EU currently receives. While the reduction in the tariff on U.S. grape juice in 2004, from 120 percent to 22 percent, was a step in the right direction and has resulted in an increase of U.S. grape juice exports to Israel from $200,000 to $2 million over six years, more work must be done to ensure U.S. producers have the opportunity to compete in this high-demand market. New York grape juice producers estimate that grape juice exports to Israel could double if Israel's tariff is eliminated.

Israel offers a niche Kosher grape juice market that New York grape juice producers are uniquely suited to supply. The U.S. exported over 1.8 million liters, $2 million worth, of kosher grape juice to Israel in 2013 alone. Concord grapes, grown predominantly in New York State, are used to produce kosher grape juice. In addition, there is currently a saturation of the U.S. grape juice market, which has depressed Concord grape prices for growers in my state. Lowered trade barriers to Israel's grape juice market would benefit these growers by increasing grape juice exports to Israel, a market where prices are increasing as a result of unmet demand.

Thank you for your attention to this important issue. I appreciate the good efforts of USTR and USDA over the years to expand our trade relationship with Israel, one of our strongest export markets, and I urge you to work toward a final extension of the U.S.-Israel ATAP that improves market access for U.S. grape juice into Israel through tariff elimination.

Sincerely,

Charles E. Schumer
United States Senator


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