Congress recently approved a bill that will result in:

Both GSP and ATPDEA are likely be reviewed in more detail by Congress in 2009, with possible changes to country and product eligibility. “My colleagues and I are concerned that our preference programs may help those who do not need or deserve our help,” Senate Finance Committee Chairman Max Baucus, D-Mont., said. “We are concerned that certain beneficiary countries boast globally competitive industries and wealthy owners. We are concerned that certain beneficiary countries show disdain for America’s foreign policies and do not provide adequate protections for the American companies operating in those countries. … Every policy requires review and reevaluation to make sure it works how it should, for whom it should. As chairman of the Finance Committee, I am committed with my colleagues to reviewing and reevaluating our trade preference programs to make them work better for Americans and our trading partners.”

AFI Town Meeting Set for November 14

AFI’s annual Town Meeting will be held November 14 in northern New Jersey. The day will begin with a Board of Directors meeting. At 11 a.m., the Nut & Ag Section will have a one-hour meeting. At noon, there will be a lunch, followed by speakers, including Paul Jeka of All-Ways Forwarding and Vincent Arguimbau of Arguimbau & Co./OTC System, who will guide importers through the upcoming 10+2 requirements. The event will end with a reception at about 4 p.m. Complete details are available at www.afius.org.

2009AFI Convention

The 2009 AFI Convention will be held April 30-May 3 at the Naples Beach Hotel & Golf Club, Naples, Fla. Look for convention details soon.

- GENERAL NEWS -

WTO STRIKES DOWN USE
OF ZEROING IN ANTIDUMPING CASES

The U.S. use of zeroing in its antidumping proceedings was struck down again by the WTO 1. The U.S. called the ruling flawed and said the issue should be resolved in the Doha Round negotiations.

The European Union (EU), which brought the case, said it expects the U.S. to “comply with the ruling and put an end to all remaining illegal practices of zeroing.” The U.S., however, indicated it will continue to fight. A statement from USTR complained that the WTO dispute settlement panel examining the most recent case went against its better judgment in ruling for the EU. “Although the panel said it tended to agree with the U.S. and prior panel reports finding zeroing permissible in administrative reviews, and found the U.S. interpretation was ‘permissible,’ the panel nevertheless concluded the U.S. acted inconsistently with the Antidumping Agreement and the GATT 1994 by using zeroing,” said the USTR. “In doing so, the panel clearly felt constrained to follow Appellate Body reasoning about which the panel itself expressed doubts. This is the first time a panel has found zeroing prohibited in reviews and so regrettably becomes another example of poorly reasoned dispute settlement reports that have incorrectly found zeroing to be prohibited under the WTO Agreements.”

Several U.S. lawmakers said they see the WTO decisions against zeroing as an illegal restriction on U.S. trade remedy laws.

BUSH ADMINISTRATION WANTS FTAs
AS PART OF ECONOMIC STIMULUS PLAN

The White House is urging any economic stimulus package considered by Congress include legislation to implement free trade agreements with Colombia, Panama and South Korea. The Department of Commerce and the Office of the U.S. Trade Representative have recently posted to their Web sites information highlighting the benefits of trade and how these FTAs in particular would boost economic growth.

A DOC fact sheet notes that from January to August 2008 U.S. exports of goods and services jumped 18 percent to $1.3 trillion, “a huge economic stimulus that kept America growing despite the effects of the domestic housing market.” Net exports contributed 2.9 percentage points to total GDP growth in the second quarter of 2008, the DOC states, and are the main reason the U.S. economy had positive growth in the first half of the year.

FTAs are having a positive effect on the economy as well, according to the fact sheet. The U.S. has a $10.3 billion trade surplus with its 14 FTA partners. From January through August of this year the U.S. manufactured goods trade balance improved 158 percent with these countries but only 7 percent with non-FTA partners.

Information from the DOC and the USTR indicates that the Colombia, Panama and Korea FTAs would further contribute to U.S. economic growth.

QUALITY ISSUES
HAVE LONG-TERM IMPACT

The buying habits of consumers change dramatically and cost companies millions when product safety and quality issues arise, according to a new study released today by Deloitte. More than half of consumers responding (58 percent) who heard about product safety and/or quality problems changed their buying habits, according to the survey. These consumers turned away from such products for more than nine months, on average, increasing the likelihood that they would discontinue the use of the product or brand entirely.

The survey, “Food and Product Safety and Its Effect on Consumer Buying Habits,” addresses consumer behavior around product safety and product quality issues in general. Specifically, it focuses on key issues in four product categories: toys; consumer electronics; fresh food; and packaged food/beverages. Of these categories, changes in buying habits were most common for fresh food and packaged food/beverage. Roughly half (49 percent) of respondents said they were extremely concerned about product safety, with the greatest concerns coming from women (53 percent) and consumers 55 years of age and older (56 percent). More than half of respondents (54 percent) said they were more concerned about the safety of fresh food products than they were a year ago.

Although globalization is an increasingly valuable part of doing business, roughly two-thirds of consumers surveyed (65 percent) were extremely concerned about the safety of products produced outside the United States, with the greatest apprehension coming from older consumers. Approximately three-quarters of the overall respondents (73 percent) were extremely concerned about the safety of products produced in China, with half having the same doubts about products produced in Southeast Asia and Mexico.

As products fall under greater scrutiny, consumers surveyed indicated they would like more information about the safety of food products provided on packaging (86 percent), company Web sites (81 percent) and by the government (81 percent). Some 67 percent said food product labels with country of origin labeling, certification of product testing and certification of quality testing would be extremely important in their buying decisions.

- FDA NEWS -

GAO EXAMINES FDA’S FOOD
LABELING ENFORCEMENT EFFORTS

FDA needs to better leverage resources, improve oversight and effectively use available data to help consumers select healthy foods, according to a report from the Government Accountability Office (GAO).

GAO notes FDA has little assurance companies comply with food labeling laws and regulations for, among other things, preventing false or misleading labeling. Specifically:

FDA does not have reliable data on the number of labels reviewed; the number of inspections, which include label reviews, has declined. For example, of the tens of thousands of foreign food firms in more than 150 countries, just 96 were inspected by FDA in 11 countries in fiscal year 2007 – down from 211 inspections in 26 countries in 2001.

FDA’s testing for the accuracy of nutrition information on labels in 2000 through 2006 was limited. FDA could not provide data for 2007.

While the number of food firms in FDA’s jurisdiction has increased, the number of warning letters FDA issued to firms that cited food labeling violations has held fairly steady.

FDA does not track the complete and timely correction of labeling violations or analyze these and other labeling oversight data in routine reports to inform managers’ decisions, or ensure the complete and timely posting of information on its web site to inform the public.

In addition to its official recalls database, FDA’s Center for Food Safety and Applied Nutrition has continued to waste resources on a second recall database FDA had agreed to eliminate in 2004, as GAO had recommended.

GAO issued a report recommending actions for FDA to ensure labeling office managers have the information they need to oversee compliance with labeling laws; ensure the public has timely access to information on labeling violations on FDA’s public web site; and better leverage resources to achieve its mission. In commenting on a draft of the report, FDA stated the report raised important issued and agreed, with qualifications, with some of GAO’s recommendations, but did not comment on others.

HHS TO OPEN FDA OFFICES
IN SEVERAL COUNTRIES

The U.S. Department of Health and Human Services will send the first FDA staff to China, India, Europe and Latin America before the end of 2008, according to HHS Secretary Mike Leavitt.

The first overseas office will be in China with the first staff in place in Beijing this year. Additional staff will be posted in 2009 in Shanghai and Guangzhou. FDA plans to establish its second overseas office in India in 2008. In both nations, personnel would work closely with local authorities as well as industries that ship food and medical products to the U.S. to improve safety efforts. HHS/FDA will also be opening overseas offices in Europe and Latin America before the end of 2008, with a fifth office in the Middle East to follow in early to mid-2009.

- PRODUCT NEWS -

STUDY SHOWS CANNED TOMATOES
MAY REDUCE HEART DISEASE RISK

New research presented at the American Dietetic Association’s (ADA) annual expo indicates people who ate at least one-quarter cup of canned tomatoes had lower levels of C-reactive protein (CRP), one of the markers for cardiovascular disease risk, than people who ate less than that amount. The research also showed those Americans who ate canned tomatoes had a greater intake of vitamins and nutrients recommended for improved health.

The research, funded by ConAgra Foods, is based on data from the 1999-2004 National Health and Nutrition Examination Survey (NHANES). NHANES is a large national study of diet and health relationships among 13,292 American adults conducted annually by the Centers for Disease Control and Prevention.

RESEARCH SHOWS HONEY
MAY HELP HEAL WOUNDS

Researchers who analyzed existing studies on whether honey can help heal wounds are cautiously optimistic this ancient treatment may help in some cases, reported WebMD.

Findings from the study published in The Cochrane Library which reviewed 19 trials on 2,554 people indicated honey may improve healing times in mild to moderate superficial and partial thickness burns compared with some conventional dressings. The researchers also concluded honey does not seem to help with chronic leg ulcer treatments. However, the researchers warned the potential for bias in some of the trials was moderate to high and the results should be ready with caution.

According to the report, there are several reasons honey could help with the healing process. Honey appears to draw fluid from the underlying circulation, providing both a moist environment and topical nutrition that enhances tissue growth. It may also spur debridement – the removal of dead tissue around a wound to make way for healthy tissue.

DOLPHIN-SAFE TUNA LABELING
CHALLENGED BY MEXICO

In a complaint filed at the World Trade Organization against U.S. requirements for labeling imported tuna as “dolphin-safe,” Mexico claimed the requirements are discriminatory and have had a negative impact on its domestic tuna fishing fleet.

Commerce currently prohibits tuna harvested in the eastern tropical Pacific Ocean by intentionally encircling dolphins with purse seine nets from being labeled as dolphin-safe. While Commerce sought to weaken this standard so tuna harvested in this way could be labeled as dolphin-safe as long as no dolphins were killed or seriously injured, federal courts overturned this effort in 2004 and 2007 finding it was based more on politics than scientific evidence.

Mexico argues the U.S. is in violation of WTO rules by allowing tuna imported from other countries but not Mexico, to be labeled as dolphin-safe. Mexico and the U.S. have 60 days to resolve the issue through consultations. If an agreement cannot be reached, Mexico will be able to request a dispute settlement panel to review the matter.

- CUSTOMS NEWS -

The chairman and ranking member of the House Ways and Means Committee sent a letter to DHS and CBP to express their concerns with CBP’s proposed 10+2 rule and to urge the agencies to phase in 10+2 over a longer period, issue another round of interim regulation that will provide for evaluation of the program with a representative group of volunteer importers and structure the program so benefits can accrue to C-TPAT participating firms.

The letter urged CBP to establish a regular, collaborative process for working with the importing community to review and correct operational and technical issues related to the rule’s implementation. The letter stressed concerns and urged CBP to work with the Congressional staff, Homeland Security committees, relevant federal agencies and the importing community to engage in a dialogue to ensure the regulation is finalized and administered in accordance with Congressional intent.

- AFI NEWS -

PROMOTE YOUR COMPANY
IN THE AFI ANNUAL

The AFI Annual is the most prestigious publication in the food importing industry. For more than 25 years, the food import trade and suppliers abroad have come to rely on this annual publication as the authoritative source for trade information, contacts, food law and practical business advice. Advertisers have seen their ads in previous AFI Annuals translate into new business. People refer to the AFI Annual when they have a need - and are ready to buy. For as little as $199, your company can reap similar benefits. Look for details at www.afius.org

AFI’S SIAL RECEPTION
CONTINUES TO BE A HIT

AFI’s SIAL reception continues to be a popular event. Many members gathered Monday, October 20 in Paris, France at the close of the SIAL exhibition that day. The reception provides a great opportunity to catch up with fellow members, get a quick update on AFI and industry news and avoid the crowds cramming on the trains back to the city.

Look for details next year for AFI’s ANUGA reception.

UPCOMING MEETINGS

AFI Town Meeting, November 14, Wyndham Garden Hotel Newark Airport, Newark, N.J.

National Honey Packers and Dealers Association Meeting, January 8, Radisson Hotel, Fresno, Calif.

North American Olive Oil Association Meeting, January 16, Grand Hyatt, San Francisco

2009 AFI Convention: April 30-May 2, Naples Beach Hotel and Golf Club, Naples, Fla.