Business

GSP: US likely to implement zero duty on Pakistani mangoes

Will increase volume of fruit being exported currently at 10 per cent duty

Peer Muhammad June 27, 2015

Roundabout: $3.5 per kg, is the price of Pakistani mangoes in different cities of the US. PHOTO: AFP

ISLAMABAD: The United States is likely to implement zero duty on import of Pakistani mangoes in the upcoming Generalized System of Preferences (GSP), a senior Ministry of Commerce official told The Express Tribune.

The officer said that a high-level meeting between the ministry and US officials was held recently to discuss GSP-related issues with focus on Pakistani mango exports. It was understood that the GSP pertaining to Pakistani mangoes will be effective for the next two months.

At present, there is a 10% duty on import of Pakistani mangoes to the US that, after the status, will be brought down to zero.

The official said that around 200 tonnes of Pakistani mangoes are exported to the US and are available at $3.5 per kilogramme in different cities. This cut in import duty will ultimately help increase the quantity of exports to the US market. Major cities where Pakistani mangoes are being marketed are Houston, Austin and Dallas.

Read: Awareness campaign: Drive launched to better mango quality, yield

“This will be a good move for the horticulture sector of Pakistan and will help facilitate mango exports to US,” said Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Chairman Standing Committee on Horticulture Ahmad Jawad.

Jawad said mango exports to the US received approval in 2010, but the volumes remain meagre till date due to procedural issues.

“I think the upcoming GSP would prove a window of opportunity for our mangoes in the US, which is an attractive market for Pakistani fruit,” he said. “It is one of the largest importers of mangoes and Pakistan would like to capitalise it with full potential.”

He suggested that United States Department of Agriculture (USDA) should also consider the process of Hot Water Treatment (HWT) for Pakistani mangoes to increase the volumes. The HWT process was approved by the Australian Department of Agriculture, Forestry and Fishery (DAFF) for Pakistani mangoes to Australia.

Read: Taste of london: Pakistani mangoes attract crowds

The GSP status of 127 countries including Pakistan had been suspended for the past 20 months by the US Congress. However, the amount of duty paid on the products will be refunded to Pakistani exporters after its re-authorisation.

Published in The Express Tribune, June 27^th, 2015.

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COMMENTS (10)

Dipak | 8 years ago | Reply Indian and Pakistani mangoes, no matter how good they are, have zero future in USA. I have eaten both and they are not bad, but Mexican Kent mangoes will kill all Indian and Pakistani mangoes. Keep the export to Middle East where they are appreciated. The largest number of stores in USA are Indian, not Pakistani, and the owners of Patel Brothers and Subji Mundy said the demand is low because of price and half of all Indian and Pakistani mangoes become rotted by the time they reach stores.

bahaha | 8 years ago | Reply @Khan: If you yourself weigh 90 Kg and the ticket to USA is $600 = $6.67/kg is the cost to get there. Assuming 3 mangoes per kg that roughly 2.22$ per mango. You still have to add local freight at both ends and lets not forget the idiot who grows it. This is a perishable commodity sir gee and allowances have to be given for the extremely small window of operation. You saw a mango for six dollars because the last two shipments perished.

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curious2 | 8 years ago | Reply Zero tariff isn't going to eliminate fruit fly issues and Pakistan mango's won't get through inspection without irradiation or water bath. USA funded a program years ago instructing mango farmers how to penetrate the USA mango market which is huge but competitive - you elected not to invest in irradiation equipment and your product isn't sitting on American shelves.

Khan | 8 years ago | Reply @bahaha: Mangos fetch far more in the USA. I've seen them go for $6 each at several stores in Chicago and New York. And speed boats for exports? Ha! Do you even consider how that would make shipping costs sky rocket? And do you think we don't have enough mangoes to export to both the gulf and Saudi Arabia? Why should the government ignore the much bigger and richer American market?? What sort of terrible suggestions is your local PTI office telling you?

Khan | 8 years ago | Reply @bahahaha: Worthless product? Tell that to the mango farmers. In Chicago, chaunsa mangoes are sold for $6 EACH. Don't criticize what your clearly don't know. The government is smart to push for agricultural exports. Your cricket captain teaches his followers to mindlessly criticize criticize criticize. Forget facts, it's all politics for your kind.

bahaha | 8 years ago | Reply @Mohammad: You are correct UAE and saudi-america is the real market for mangoes. Pls advise your govt to invest in cargo speedboats- our govt is too busy at other things

bahahaha | 8 years ago | Reply Even if the US paid us gold in weight for the mangoes we ship to them- it would still not be profitable. I have no idea why this lame-brain govt. is pursuing a worthless product. They should setup drying of mangoes or exporting pulp. It is a NO-BRAINER to export mangoes and expect them to arrive by air on time and Ripe to eat. Darian economics??

Fruit lover | 8 years ago | Reply A very kind gesture no doubt.

Mohammad | 8 years ago | Reply Well GSP aside... I can't tell you how long and patiently I have waited for Pakistani Mangoes here in UAE.. even I left my number with retailers that if any time Pakistani mangoes come to market, please call me, visited the local fruit and vegetables market too. I can swear that I have watched Indian, Malaysian & Kenyan Mangoes helplessly but even with my love for mangoes, I didn't bought them. I never wanted to cheat on Pakistani Mangoes. I also complained to local retailer when they had Mango Festival without presenting the Pakistani Mangoes - How can there be a Festival without Pakistani Mangoes. Seriously It was very hard to see other's mangoes and missing Pakistanis. Now since the Mangoes are available, I always visit the Pakistani Mangoes stall even If I don't need buy due to enough stock, I just look at them dearly, I stare them, touch them and praise them..

Ahmad | 8 years ago | Reply Mango is indeed the king of fruits.. Think Mango, think Chownsaa.. Think Mango, think Sidhree.. Think Mango, think Dosehree.. ...

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