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Citrus growers unite to keep trade tariff in place By Joel Eskovitz staff writer March 4, 2003 WASHINGTON — Florida citrus growers lobbying against the elimination of a tariff on Brazilian orange juice don't have to do much convincing when they reach the door of Rep. Adam Putnam. He's one of them. And Putnam, R-Bartow, knows all too well what its ramifications could be. "It puts us out of business," said Putnam, a citrus grower and cattle farmer. "It will wipe us out. It will wipe out the whole industry." The citrus industry's lobbying efforts in Washington begin with Putnam, who has mobilized a group of industry leaders, growers and economists to argue its case: that any change in the tariff status will allow cheaper Brazilian orange juice to force the majority of Florida growers out of business and, in essence, create a monopoly on the market. That group travels to Washington this month as the citrus industry mounts a multimillion-dollar campaign to avoid becoming the latest casualty of a free-trade initiative that badly hurt the state's tomato market. "The industry itself is very busy and is mobilizing for war. They're mobilizing to protect their very existence," Putnam said. "I've never seen the industry so unified behind a common purpose and willing to put the resources behind it." Florida Citrus Mutual, which has taken the lead in organizing growers in the Sunshine State, estimates the industry could spend up to $10 million in its three-pronged campaign focused at trade representatives, lawmakers and the citizens of Florida. Andy LaVigne, who heads the organization, has been traveling to Washington almost every other week to speak with lawmakers and representatives from the Bush administration and several federal agencies. The group could eventually hire a permanent lobbyist in the nation's capital as it mounts its campaign to keep the tariff, which adds close to 30 cents to every gallon of orange juice imported into the country. The trade agreement The urgency stems from the release of the U.S. Trade Representative Robert Zoellick's initial proposal for the Free Trade Area of the Americas, which would include 34 nations in the Western Hemisphere. The underlying theme of the proposal is President Bush's goal of creating free trade around the world. The FTAA negotiations are taking place at the same time that the rules that govern the much-larger World Trade Organization are being renewed. Both are expected to be finalized in 2005, when the U.S. Congress would vote to approve the pacts, but officials say discussions are already behind. In Zoellick's proposal, the orange-juice tariff would be among the last to be eliminated. "This is just the opening phase, and obviously we would need to see other countries open their markets for us to reach a final agreement," said Richard Mills, a spokesman for Zoellick. Still, those in the citrus industry don't have to look far for a reason to be alarmed by the free-trade concept. After the North American Free Trade Agreement was passed in 1993, cheaper tomatoes from Mexico flooded the market and virtually destroyed Florida's tomato industry. For the citrus industry — which has a $9.1 billion impact on the state's economy — the stakes are even higher. Aside from tourism, nothing brings more money into Florida than citrus. Because of the impact the tariff elimination would have on the state, Putnam said the Bush administration must act quickly to address the issue, especially before a 2004 presidential campaign that could include the state's senior senator. "They cannot afford for a state he carried by just under 500 votes to be up in arms at the potential loss of the state's signature crop," he said. "With Bob Graham on the ticket, it becomes even more of a concern to them politically." Graham and fellow Democratic Sen. Bill Nelson have been working closely to support the industry in an effort that cuts across party lines. Reps. Mark Foley, a Republican who represents much of the Treasure Coast, and Dave Weldon, R-Melbourne, also have been supportive of maintaining the tariff. With the fourth-largest delegation, Florida could have a significant say when the issue comes up for congressional approval. "I think we can build some partnerships with some other states with import-sensitive commodities," Putnam said. "Knowing that trade is a tough issue to pass at any time, every vote counts." Treasure Coast effects Although the Treasure Coast is considered the grapefruit capital of the world, its future is closely linked with companies that primarily produce oranges, said Doug Bournique, executive vice president and general manager of the 1,100-member Indian River Citrus League. "If they can't make money in oranges, they're probably not going to stick around to help grapefruit," he said. "It's something that's extremely important to the health and vitality of our industry and the health of the state." Bournique said citrus employs roughly 20 percent of the workers on the state's east coast, the equivalent of a $2 billion industry there. "We're bigger than tourism here in a couple of these counties," he said. Beyond the economic ramifications, Lavigne added, are the environmental troubles that could be on their way if the tariff is lifted. "Obviously, in the Treasure Coast area especially, other options are development," he said. "Folks don't just keep land to hold it for the public good." - eskovitzj@shns.com Citrus score Here are the number of boxes of oranges and grapefruit produced on the Treasure Coast in the 2000-01 season, the most recent season recorded by the Florida Department of Agriculture and Consumer Service. A box of grapefruit is equal to 80 pounds of fruit. A box of oranges is equal to 70 pounds.
Grapefruit: 11.8 million
Grapefruit: 1.5 million
Grapefruit: 17 million |