Tariff At Risk: Can The Florida Citrus Industry Survive?

Abstract

For over 70 years, the Florida citrus industry has been protected from foreign competition by a tariff on orange juice. The orange juice tariff is currently being threatened by negotiations over the Free Trade Area of the Americas (FTAA) agreement and the World Trade Organization (WTO). Brazil is the leading foreign competitor to the Florida citrus industry. The tariff prevents Brazil from becoming a large citrus cartel that could take control of the worlds orange juice market. The Florida citrus industry contributes $9.1 billion to Floridas economy and provides jobs for 90,000 Florida citizens. Orange juice production is a key to the strength of Floridas economy. Florida citrus growers argue that the tariff is the most important issue facing the industrys survival. Without the tariff, Florida citrus growers are in danger of going out of business. This could devastate Floridas economy. It is important that Florida citrus growers and FTAA negotiators unite and intensify efforts to protect the citrus tariff and ensure the survival of Floridas citrus industry.