Agriculture sector raises the stakes over US tariffs: Sector estimates impact of up to US$400 million

It is not only the government that has raised its voice regarding the United States' decision to impose a 12.5% tariff on Chilean products. From the executive branch, Chancellor Francisco Pérez Mackenna stated that the administration is "working to resolve this problem," while Defense Minister Fernando Barros described the tariff increase as "unfair and raises doubts about the closeness and reliability of the relationship."

Meanwhile, Agriculture Minister Jaime Campos dismissed the argument of forced labor and asserted that it is a "lie they invented to impose this tariff measure on us."

These voices were joined by the agricultural guild, through the National Agricultural Society (SNA), which expressed its concern and hardened its stance on the measure, warning that the economic impact could reach up to US$400 million solely in fresh fruit exports.

Through a statement, the SNA questioned the levy imposed by Washington and emphasized that it contradicts the Free Trade Agreement currently in force between both countries.

The guild argued that the measure affects the sector's competitiveness and called for the swift restoration of zero tariffs for Chilean agricultural exports. "We express our rejection of the 12.5% tariff imposed by the United States on Chilean products. Chile has a fully operational free trade agreement with that country, and treaties must be respected," stated SNA President Antonio Walker.

The leader added that "we believe the measure is unfair: US products enter Chile without paying tariffs, while Chilean products will have to pay them in their second-largest trading partner."

Along those lines, he warned that "this reduces the competitiveness of our agriculture and directly hits farmers' profitability."

Walker also provided figures on the potential economic impact of the measure. "According to preliminary sector estimates, the impact on fresh fruit exports alone would range between US$300 and US$400 million," he noted. He also expressed confidence that talks between both governments would reverse the decision.

"We hope that the negotiation between Chile and the United States reaches a successful conclusion. We urgently need to return to zero tariffs for Chilean agriculture."

Source:Emol.com