ALGERIA, December 19, 2002 -- Due to high prices of vegetable oil on the world market, imports of sunflower oil and soybean oil decreased tremendously in MY 2001. Following the tariff reforms on 2001, duties on crude oils and on meal were lowered further.

THAILAND, December 20, 2002 -- The purpose of this report is to update the readers in the current hypermarket situation in Thailand.

EUROPEAN UNION, December 19, 2002 -- Due to reduced catch limits and the depletion of certain fish stocks, total EU fish catches in 2000 decreased by 4% compared to 1999. This development will continue in the coming years as the European Commission proposed drastic cuts in 2003 allowed fish catches. This report provides statistical data on EU fish catches, aquaculture, the EU fishing fleet and imports and exports. Changes in the EU's fisheries policy will be reported in a second seafood report.

EUROPEAN UNION, December 19, 2002 -- Export refunds for tomatoes, oranges, lemons and apples were set for the period January-March 2003. Refunds for nuts were set for the period January-June 2003.

EGYPT, December 19, 2002 -- General Authority for Supply Commodities purchased 180,000 MT of U S wheat and 120,000 MT of French wheat in November 2002. The Food Industries Holding Company clinched an agreement to import 100,000 MT of Syrian durum wheat in exchange for unspecified amounts of Egyptian rice and potatoes.

CHILE, December 19, 2002 -- Chile's tomato paste production is expected to rebound following a stronger demand in its export markets. Although exports of fresh tomato are expected to fall, production is forecasted to stay at similar level then last years.

PHILIPPINES, December 20, 2002 -- President Gloria Macapagal Arroyo has ordered the Department of Agriculture-Bureau of Plant Industry (BPI) to temporarily stop issuing import permits for vegetable products after receiving complaints that the domestic vegetable industry was being hit by a surge of low-priced vegetable imports, effective immediately. The DA has likewise said that it would push for an increase in vegetable tariffs from the current applied rate of 7% to the maximum bound rate of 40%.

PHILIPPINES, December 20, 2002 -- Exports of coconut oil and copra meal in August 2002 declined by 56 and 37 percent, respectively, compared to their levels the previous year. Prices of coconut products were generally higher during the period as global supplies of copra remained tight.

EUROPEAN UNION, December 20, 2002 -- This weekly report contains data on rice prices in the U.S., Thailand and the EU. It also lists current import duties and export subsidies in the EU. All information will be published as such in the weekly USDA publication "Rice Market News".

THAILAND, December 20, 2002 -- Export prices for most grades firmed from the previous week's level due mainly to stronger Thai currency against the U.S. dollar.

SPAIN, December 20, 2002 -- Over 26 percent of total food products in Spain are consumed through the HRI sector. This percentage increases every year. The Spanish HRI sector is very complex. Spain is also one of the leading tourist destinations in the world.

SOUTH AFRICA, REPUBLIC OF, December 20, 2002 -- South Africa's CY2002 citrus production is estimated to have increased by about 8%from a year earlier. However, average fruit size will be smaller than last year because of unfavorable weather during the fruit development stages in some growing areas. More fruit is therefore expected to be sent for processing and to the domestic market, with a decrease of 8% in exports compared to CY2001. Grapefruit area and output continue to stagnate based on weak international demand. Citrus output in CY2003 is expected to decrease by 5 percent.

EGYPT, December 20, 2002 -- Egyptian rice exports are expected to decline by about 48 percent in CY 2002 due to high prices relative to other suppliers.

LITHUANIA, December 20, 2002 -- According to sources, Lithuania will import 100,000 metric tons (MT) of duty free grain during the balance of MY'02 (July/June) from Russia, Ukraine and/or Kazakhstan.

ROMANIA, December 23, 2002 -- A recent regulation on mechanically deboned meat (MDM) may substantially affect U.S. exports. The test for Salmonella will be stricter and will be required on the export health certificate. The law limits MDM use as an ingredient to heat treated meat products and requires meat products containing MDM to be labeled as such. The new regulation will be effective January 7, 2003. The Agricultural Affairs Office is expecting that exporters will be granted a 90 day extension until April, in order to comply with the rule.

JAPAN, December 23, 2002 -- For the first time in three years, bottled wine imports were up in 2001, rising 6.6 percent in volume and 11.9 percent in value. The U.S. share of the bottled wine import market was 8.9 percent by value and 11.3 percent by volume in 2001, down slightly from 2000. While the weak economic situation continues to depress the overall market for alcoholic beverages in Japan, the wine market has benefitted from a significant reduction in the excess inventory levels built up during the wine boom/slump of the late 1990's. U.S. wine continues to face stiff competition from France and Italy, with both countries gaining share in 2001. Imports of French wine are up again in 2002 to date, with SOPEXA funding for Japan up significantly at $6.7 million. Nevertheless, the long-term outlook is positive for U.S. wine exports, as the overall market recovers and imported wine further erodes the share of traditional spirits. Moreover, in September 2003, regulations governing the sale of alcoholic beverages at retail will expire, increasing significantly the number of retail outlets selling wine.

BOSNIA-HERCEGOVINA, December 23, 2002 -- Total 2002/2003 wheat production will be around 195,000 MT, down 35% compared to last year. Bosnia Herzegovina (BiH) usually imports 50 – 70% of its wheat needs. With the lower forecast crop, wheat import needs could be as much as 100,000MT higher in 2002/2003 or nearly 450,000MT. Winter wheat planted area is down and this, along with changes in government support, should result in an increase in corn and soybean area.

TURKEY, December 23, 2002 -- The Turkish market offers both rewards and challenges to the U.S. exporter. A large and growing population is rapidly changing its consumption patterns while maintaining many traditions as well. While Turkey's economy continues to rebound, problems still exist. Historically, there have been more opportunities for U.S. exports of bulk commodities than for high-value products. Opportunities for exporting high-valued products are limited by restrictive non-tariff barriers, high tariffs, and competition from Turkey's neighbors including the European Union.

EUROPEAN UNION, December 23, 2002 -- On November 18, 2002, the EU and Chile formally signed an Association Agreement. The trade provisions will enter into force once the Chilean Congress has ratified the Agreement, expected early 2003.

SOUTH AFRICA, REPUBLIC OF, December 23, 2002 -- South Africa's CY2002 production is estimated to have increased 33% percent to 110,000 MT from a year earlier because of good weather conditions and an ‘on-year'. Estimates are for 40,000 MT of exports, 40,000 MT domestic consumption, and around 30,000 MT for processing. SAAGA's generic promotional campaign in the UK is resulting in increased demand for South Africa's avocados in that market.

POLAND, December 23, 2002 -- The report includes a FAS/USDA Warsaw translation of the Polish Ministry of Agriculture and Rural Development website regarding the agricultural terms of Polish EU accession. This site also highlights the amount per hectare of direct payments Polish farmers will receive in 2004. As a result of EU agreement to Polish requests, direct payments will be boosted to Polish farmers on a "simplified" per hectare basis while the commercial milk quota concessions are viewed by Polish authorities as an opportunity to expand such production.

PHILIPPINES, December 23, 2002 -- The National Food Authority has issued the rice import guidelines for CY2003. The guidelines give preferential treatment to farmers and farmer organizations and take effect Dec. 31, 2002. Post expects the Philippines to import at least 800,000 MT of rice next year.

NETHERLANDS, December 24, 2002 -- With a population of some 15.9 million, The Netherlands is one of the most densely populated countries in the world, with an average of 971 inhabitants per square mile. The retail sector still dominates the Dutch food industry but foodservice is experiencing a period of continuous growth.

SPAIN, December 20, 2002 -- Spanish avocado production during marketing year 2001 (Jul ‘01-Jun ‘02) increased from previous years. Marketing year 2002 harvest area and production are forecast to increase further to about 8,000 hectares, and 68,000 metric tons. Immigration from South America and Africa is contributing to increased consumpion of avocados in Spain.

CROATIA, December 24, 2002 -- Croatia has a long tradition of wine production and wine is one of the few agricultural products with an exportable surplus. In 2001 Croatia exported almost $8 million of wine, of which $246,000 went to the United States. In the near future Croatia will adopt a new wine law. One effect of the new law is that EU wines will not be subject to costly and time consuming testing procedures . This could give EU suppliers a leg up in the $2.3 million Croatian wine import market.

BRAZIL, December 20, 2002 -- This report provides U.S. exporters up-to-date information on the Brazilian market and import procedures. Although, it is responsibility of the Brazilian importers to provide Government of Brazil (GOB) documentation and detailed information on import regulations, gaining knowledge of the process is crucial for U.S. exporters to develop the market and best position U.S. products. In addition, this Exporter Guide also covers food distribution and areas to be developed.

BRAZIL, December 24, 2002 -- Production of solid wood products is expected to increase in 2003 by an average 4 percent. The two major factors contributing for this growth are: higher demand from the construction and furniture industries, and higher exports of solid wood products. More conservation and environmentally focused policies are likely when the new Brazilian government takes office in 2003.

BRAZIL, December 24, 2002 -- The Brazilian Government reduced the Import Tariff for corn, rice, and wheat.

MEXICO, December 24, 2002 -- On December 16, 2002, the Secretariat of Economy published TRQs for feed grains such as wheat (durum) and other types of wheat, as well as for alfalfa, alfalfa meal, and straw and cereals husk. This is a non-NAFTA TRQ, which is available to all countries, has a zero import duty and no assigned volume limit.

INDIA, December 25, 2002 -- *India must go beyond slogans against trade pact ...*, *... Like minded must align at WTO*, *Bt cotton satisfactory: Government*, *Cell likely to monitor imports*, *Interest waived on farm loans*, *Luster-lost wheat prices cut for domestic market*, *Cargill allowed to set up commodity trading arm*, *FDI not permitted in retail trade*, *Chocolate sale outstrip competing products*, *Ruchi to expand Indore refinery:*

EUROPEAN UNION, December 20, 2002 -- The Dec 16-17 Farm Council reached political agreement on the proposal for a regulation on additives for use in animal nutrition which will ban the four remaining antibiotic growth promoters authorized in feed (Flavophospholipol, Monensin sodium, Salinomycin sodium and Avilamycin) as of January 2006.

CHINA, PEOPLES REPUBLIC OF, December 25, 2002 -- China's accession to the WTO has increased the competitiveness and availability of all imported food products. At the same time, increased trade has accelerated the country's transition to urban consumerism. In order to maintain market share and competitiveness in China's expanding, complex markets, American producers need to focus on the new generation of young, cosmopolitan consumers.

FRANCE, December 25, 2002 -- During calendar year 2001, French wine imports from the United States continued to grow, reaching about 73,000 hectoliters. The bulk of this growth can be attributed to the efforts of large U.S. wineries, as well as promotional activities individually carried out by U.S. producers at events such as Vinexpo in Bordeaux, and the AgParis sponsored U.S. wine tasting in Paris. These events contributed to U.S. wine industry efforts to introduce a wide variety of American wines to French customers.

SPAIN, December 25, 2002 -- MY02/30 PS&D data for fresh apples and fresh pears have been updated. There is a 24 percent decrease in apple production from MY01/02 but this current estimate is higher than the initial forecast. There is a 13 percent decrease in pear production in comparison with the previous year's campaign with the current estimate roughly the same as initial forecast.

CANADA, December 25, 2002 -- The CWB's board of directors denounced the United States announcement that it will launch a dispute settlement case with the World Trade Organization (WTO). CWB minister Ralph Goodale said the challenge is part of an "ongoing pattern of trade harassment" against the CWB. The CWB intends to be actively involved in the defence of this case and will provide the Canadian government with all necessary assistance to refute the unfounded U.S. allegations. Goodale predicts Canada will win the WTO case because the CWB has successfully fended off previous challenges.

FINLAND, December 25, 2002 -- The consolidation and restructuring of the Nordic food retail sector offers new interesting opportunities in terms of volumes and diversity of products being demanded. There is a great demand for organic and convenience food and food and beverages which appeal to the health conscious. Additionally, the market is expanding for international and ethnic cuisine, including foods that are uniquely associated with the various regions of America. Major current impediments to U.S. sales include consumer resistance to products which contain genetically modified (GMO) ingredients. The strong dollar, which has also been a major impediment, has weakened considerably in recent months.

RUSSIAN FEDERATION, December 26, 2002 -- Official sources report that 86.5 million metric tons (mmt) of grain were harvested in 2002, slightly more than in 2001. Prices, which had been falling in the summer, have stabilized and in some regions even increased mostly due to strong exports, but also to the influence of governmental grain interventions. Exports of wheat and barley continue strong and Post increases the wheat export forecast to 8 mmt.

EUROPEAN UNION, December 26, 2002 -- This weekly report contains data on rice prices in the U.S., Thailand and the EU. It also lists current import duties and export subsidies in the EU. All information will be published as such in the weekly USDA publication "Rice Market News".

NETHERLANDS, December 26, 2002 -- This report is an overview of the Fresh Deciduous Market in the Netherlands

BURMA, December 26, 2002 -- Burma exported 49,477 mt of beans and pulses in November, with most of them going to India. Mung, Black Matpe, and Pigeon Pea comprised almost 90 percent of the total.

THAILAND, December 26, 2002 -- Export prices temporarily increased as the government was building up the stock.

UNITED KINGDOM, December 26, 2002 -- The U.S. remains the leading supplier of temperate hardwoods to the UK, although trading conditions are difficult. Increased competition from European hardwoods and a trend towards low stocking levels/just in time ordering have characterized trade. U.S. softwood lumber use is concentrated in high value niche markets, such as top quality doors, windows and decking. Following a rapid decline in U.S. shipments of plywood to the UK, prospects for 2003 look a little better with firming prices for Brazilian plywood and rising concern for product quality from the UK trade. The upwards trend in imports of value added products has again benefitted the U.S. through 2002.

GERMANY, December 26, 2002 -- U.S. exports of solid wood products to Germany dropped by 20 percent to only U.S.$106 million in Jan-Sep 2002 versus U.S.$135 million in Jan-Sep 2001. The reduction of U.S. sales is closely linked to the slow German economy, the weakness of the German construction and furniture industries, the strength of the U.S. dollar and the increasing competition for Central and Eastern European countries. However, demand for U.S. hardwoods continues to exist. The recent strengthening of the Euro may help U.S. exporters in 2003.

CANADA, December 26, 2002 -- Government Expresses Disappointment Over WTO Dairy Export Ruling * Dairy Commission Increases Prices for Butter and Skim Milk Powder * Dairy Farmers Protest Over Eroding Pillars of Supply Management * Dairy Farmers Disappointed by Pricing Announcement * Dairy Industry Overcharges Buyers by Millions of Dollars a Year

EUROPEAN UNION, December 23, 2002 -- Personal imports of meat and milk products in the EU will have to be accompanied by official veterinary documentation from 1 January 2003 onwards.

NEW ZEALAND, December 27, 2002 -- Severe September/October frosts in the Hawkes Bay region along with a major hail storm in November in the Nelson region will significantly reduce New Zealand's apple production in 2003. Apple exports in the 2002/2003 season are forecast to decline 11 percent to 288,000 tons. Local supplies of processing grade apples will increase markedly and imports of apple juice concentrate will fall sharply to a more normal level.

CANADA, December 27, 2002 -- On December 18, approximately 3,500 angry Canadian dairy farmers converged on federal government department's of International Trade, Customs, Finance, and Agriculture to protest the erosion of two of the three pillars of supply management (price and border controls) regulated by the Canadian government. Dairy producers accuse the Canadian government of allowing dairy imports to circumvent Canadian import controls at the border as well as not setting high enough industrial milk prices for dairy producers. Dairy farmers claim that only 30% of producers are covering their costs of production, despite consecutive years of industrial milk price increases.

MEXICO, December 27, 2002 -- NAFTA TO OPEN FOODGATES, ENGULFING RURAL MEXICO; MEXICAN ECOLOGY INSTITUTE DICOVERS PRESENCE OF GENETICALLY MODIFIED CORN; PRESIDENT REFUSES CALLS TO RENEGOTIATE NAFTA CHANGES; TO RESTRAIN THE AVALANCHE OF AGRICULTURE IMPORTS IS FEASIBLE; REQUEST TO PRESIDENT FOX TO RENEGOTIATE THE NAFTA AGRICULTURAL CHAPTER

INDONESIA, December 27, 2002 -- On December 16, 2002, the Government of Indonesia issued a Presidential Decree that establishes a mechanism for imposing "Safeguard" measures should it be demonstrated that local industries are adversely effected by imports. The decree allows for implementation of higher import duties or non-tariff barriers. A special committee is to be formed to handle implementation of the Safeguard Agreement and for notifying the WTO. U.S. agriculture exports that may potentially be effected by these measures include soybeans.