Korea extends tariff exemption for imported fruits

The Korean government has taken steps to mitigate the impact of rising fresh fruit prices by extending tax exemptions for imported fruits like bananas, pineapples, mangoes, grapefruit, and avocados until June 30, with no volume limits, following an initial tariff-free period. This move aims to counteract the high cost of domestic produce due to poor weather, with an expected increase in imports of certain fruits. However, the effectiveness of these measures is uncertain, with an oversupply of pineapples, stable banana and mango markets, and potential volume limitations for grapefruit due to early season challenges in South Africa. The quick exhaustion of a reduced tariff quota for US oranges and unchanged avocado imports from Peru due to existing agreements highlight the complex dynamics at play. Importers are wary of quality variability and the economic situation, suggesting that while the tax exemption may boost activity, the overall market response will depend on balancing volume, quality, and economic conditions.