### United States

Department of Agriculture

Animal and Plant Health Inspection Service

May 2014 Analysis in Support of Certification that the

Rule will not have a Significant Economic Impact on a Substantial Number of Small
Entities

Proposed Rule
APHIS

- 2014

- 0002
RIN 0579

- [XXXX]

Importation of Kiwi from Chile into the
United States

Policy & Program Development

Policy Analysis & Development1

APHIS is proposing to amend the fruits and vegetables regulations to list kiwi ( Actinidia

deliciosa and Actinidia chinensis ) from Chile as eligible for importation into the United States

subject to a systems approach to pest risk mitigation . The systems approach , which integrates

prescribed measures that cumulatively a chieve the appropriate level of phytosanitary protection

,
would be the same that is currently applicable for the entry of baby kiwi ( Actinidia arguta ) from

Chile

. K iwi from Chile is currently listed as enterable subject to inspection in Chile or treatment

with methyl bromide.

P roduction , consumption, and trade of kiwi by the United States ha ve been expanding

and are expected to continue to increase , as shown in table 1

. Over the five years, 2008 through

2012, U.S. kiwi production and imports expanded by about 29 percent and 24 percent,

respectively, and U.S. exports by 48 percent. U.S. consumption of kiwi grew by about 23

percent over this same period.

The United States is dependent on imports for the major share of its kiwi supply. In

2012 , nearly four of every five kiwis consumed were imported. Chile is the principal foreign

source, supplying one

- half of the kiwis imported by the United States in 2012

, up from

approximately one

- third of U.S. kiwi imports in 2008. Chile is expected to continue to dominate

the supply of kiwi to the United States in the near term. Under the proposed rule, Chile’s kiwi

exporters would have the option of us ing the systems approach rather than rely ing on inspection

of the fruit in Chile or fumigation with methyl bromid e to meet import requirements

.
Although the United States is a net importer of kiwi, the percentage increase in U.S. kiwi

exports, 2008

- 2012, was twice the percentage increase in U.S. kiwi imports ; U.S. producers are

actively expanding their sales to other countries. We also note that kiwi imports from Chile are

largely counter

- seasonal to kiwi sales by domestic producers. California produces 98 percent the2

kiwi s grown in the United States, and the California season runs October through May. 1 Kiwi

from C hile is predominantly imported during the spring and summer months. Ninety

- four

percent of Chilean kiwi import ed in 2012 arrived between April and September. 2

1 California Kiwifruit Commission

, http://www.kiwifruit.org/about/availability.aspx

. 2 Based on U.S. Census data, as reported by Global Trade Information Services, Inc.

3 California Kiwifruit Commission, http://www.kiwifruit.org/about/availability.aspx Table 1. U.S. kiwi production, imports, exports, and consumption, and kiwi imports from Chile, 2008 and 2012, metric tons

2008 2012 1 Percentage Increase over 5 years

U.S. Production 20,865 26,853 28.7% U.S. Imports 50,322 62,372 23.9% U.S. Exports 6,883 10,204 48.2% U.S. Consumption 2 64,304 79,021 22.9% U.S. Imports from Chile 17,248 31,668 83.6% Chile’s Share of Imports 34.3% 50.8% Imports from Chile as a Percentage of U.S. Consumption 26.8% 40.1%

Sources: For U.S. production, the U.N. Food and Agriculture Organization; for U.S. imports and exports, the U.S. Census Bureau, as reported by Global Trade Information Services, Inc.

1 U.S. kiwi production data for 2012 are the most recently reported.

2 U.S. consumption calculated as production plus imports minus exports.

Although kiwi production in the United States is expanding, it remains a relatively

small agricultural industry, with fewer than 300 growers who se farm s average about 13

acres. 3 Nevertheless, it is a vibrant industry with an expanding export market. This fact,

together with the counter

- seasonality of kiwi imports from Chile, suggests that the

economic impact of the proposed rule for U.S. small entities would be minor. If

promulgated, the proposed rule will not have a significant economic impact on a substantial

number of small entities.3