China: PRC Releases Draft MRL Standards for Public Comments 

On June 16, 2022, the People's Republic of China (PRC), Ministry of Agriculture and Rural Affairs (MARA) released two draft National Food Safety Standards for maximum residue limits covering a total of 98 pesticides in foods for public comment. The deadline for submitting comments is July 15, 2022. This report provides an unofficial translation of the MARA Letter soliciting public comments, the two draft MRL standards, and the form for comment submission.

Costa Rica: Retail Foods

The Costa Rican retail sector is growing despite lingering effects of the COVID-19 pandemic, global supply chain disruptions, and rising prices. An increasing number of modern supermarkets stock an expanding range of imported products that reflect global and local retail trends, including clean labels, responsible packaging, and organic products. U.S. exports of high-value, consumer-oriented products to Costa Rica - largely sold through retail channels - were nearly $400 million in 2021.

India: India's FSSAI Expands its List of Rectifiable Labeling Deficiencies for Imported Food Products

On June 17, 2022, the Ministry of Health and Family Welfare/Food Safety and Standards Authority of India (FSSAI) issued Notification F. No. 1828/Misc. Matters/FSSAI/Imports-2021 notifying the expanded list of rectifiable labeling deficiencies for imported food products. Regulation 6, clause 4 of the Food Safety and Standards (Import) Regulations (2017), provides special dispensation for rectification within custom bound warehouses. Imported food products evidencing labeling deficiencies can be rectified by affixing a single non-detachable sticker or by any other detachable method next to the principal display panel. FSSAI Notification F. No. 1828 notifies two changes to the rectifiable list: (i) Per serving percentage contributions to the recommended dietary allowance and (ii) Date of expiry along with best before date.

India: More Vegan than a Vegan - India's FSSAI Issues Regulation Requiring Vegan Certification for Food Product Imports Labeled as Vegan

On June 10, 2022, the Ministry of Health and Family Welfare/Food Safety and Standards Authority of India (FSSAI) issued Notification F. No. Std/TF-Vegan Foods/Notif/FSSAI. The notification was published in the Gazette of India - Extraordinary (official gazette) on June 14, 2022. The FSSAI notification (effective June 10, 2022) requires that food product imports labeled as vegan comply with the regulation's clause 5(3). This is a new compliance clause that specifies that "no vegan food products shall be imported except with a certificate issued by the recognized authorities of the exporting countries in the format as specified by the Authority is accepted." Interestingly, there was no mention of a vegan certificate requirement in the earlier notified draft version of regulation F. No. Std/TF-Vegan Foods/Notif. /FSSAI (September 6, 2021). Said notification of the draft regulation made no reference to vegan food product imports into India.

Indonesia: Overview of Indonesia Free Trade Agreements

Indonesia, the largest economy in Southeast Asia, was the 11th largest market for U.S. agricultural exports in 2021 valued at $24.5 billion. Indonesia is party to 14 Free Trade Agreements (FTA), creating tough competition for U.S. agricultural exports. Indonesia's major FTA partners (i.e., Australia, New Zealand, China, etc.) also benefit from proximity. However, five U.S. agricultural products that are affected by these FTAs remain competitive despite higher tariffs and declining tariff rate quotas. Tree nuts, processed vegetables, corn, beef, and dairy exports from the U.S. totaled more than $516 million in 2021.

Morocco: Citrus Semi-annual

Post production estimates for tangerines/mandarins, oranges, lemons, and orange juice remain unchanged from the December 9, 2021 Annual Citrus Report. MY 2021/22 export figures are revised based on trade data.

Morocco: Grain and Feed Update

Morocco is facing low wheat production in marketing year 2022/23 due to drought. The Ministry of Agriculture forecasts total wheat and barley production at 3.2 million metric tons, about 62 percent down from the previous year's crop (10.2 million metric tons). In response to low production and rising wheat prices globally, the Moroccan government continues to support wheat imports based on a fixed flat-rate premium through December 31, 2022.

Morocco: WTO Notification on Plant and Plant Products 

Morocco notified G/SPS/N/MAR/85 on June 10, 2022. An unofficial translation is included in this report. Comments are due no later than August 9, 2022. The notification concerns plants, plant products and other objects.

Netherlands: Concept of a Meat Tax Under Discussion in the Netherlands

In an evaluation of Dutch food policy published on March 29, 2022, Minister of Agriculture, Nature and Food Quality, Henk Staghouwer, proposed to explore the possibilities of introducing a meat tax in the Netherlands. However, in subsequent discussions, Minister Staghouwer left the impression that a meat tax was not certain. On May 10, 2022, a motion of 12 political parties (including two government coalition parties) was put forward, petitioning to refrain from implementing a Dutch meat tax. With this motion proving influential in the second chamber of Dutch parliament (but not legally binding), the future of a Dutch meat tax remains unclear at this time.

Turkey: Food Inflation in Turkey Marches Higher

Food inflation in Turkey is the highest it has been in decades. Average food prices in May were up 92 percent from a year ago. One of the leading reasons behind higher food prices is the rising cost of on-farm inputs, such as fuel, fertilizer, and feed. Other contributing factors include a weakening currency, supply chain challenges, and economic uncertainties. The combined effect of all of this has caused producer prices to shoot up 155 percent in May compared to the same time last year. Farmers are reportedly struggling to turn a profit since costs are rising faster than their ability to raise farmgate prices. Although the government has intervened to counter inflationary pressures, Turkey's food prices are expected to climb higher for the foreseeable future.

United Arab Emirates: Grain and Feed Annual

UAE's overall economic recovery will boost consumption and imports of grain and feed in MY 2022/23. The Ukraine conflict and other factors contributing to high commodity prices and food security may put downward pressure on UAE consumption in MY 2021/22. This will mainly include all wheat-based commodities and animal products due to price increases in corn and fertilizers. The Ukraine conflict should provide opportunities for U.S. wheat and corn exports to the UAE. Post forecasts UAE all wheat imports in MY 2022/23 to increase by 6 percent or 100,000 MT to reach 1.8 MMT. Rice Imports are forecast to increase by 11 percent or 100,000 MT to reach 1.0 MMT. Corn imports are forecast to increase by roughly 17 percent or 100,000 MT to reach 700,000 MT. UAE barley imports in MY 2022/23 are forecast to increase by 4 percent or 20,000 MT to reach 520,000 MT.

Venezuela: A Changing Retail Environment - How Venezuela's Supermarkets are Adapting to Economic and Social Changes

On May 4 and 5, 2022, Venezuela's National Supermarkets Association held an event entitled "Radiography of the Retail Sector in Venezuela 2022." The goal of this event was to evaluate the Venezuelan retail sector situation including changes in retail and consumer trends, emerging threats, and new opportunities for growth. Despite economic challenges in Venezuela, the outlook for retail growth is strong. Household spending between February and March 2022 grew by 29 percent, with food purchases being a major driver of increases in spending. The growth of modern retailers is putting pressure on traditional retailers to compete in Venezuela. The modern channel grew 5 percent in spending above the traditional channel between February and March 2022. Service quality is emerging as a major differentiator for retail businesses, with consumers increasingly valuing delivery services, the ability to use different payment methods, and the integration of digital services.