Chilean table grape industry condemns the suspension of the Systems Approach: “It’s the most unfair thing there is”

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Within the framework of the Fruittrade 2025 conference, key stakeholders in the Chilean table grape industry came together to assess the sector’s future challenges vis-à-vis the country’s primary commercial partner, the United States.

The conversation took place on the first day of the event, organized by Chile’s Federation of Fruit Producers (Fedefruta) in Santiago.

In the panel, experts broke down the impact of the 10 percent tariff imposed by the White House on the country, as well as the repercussions of the suspension of the Systems Approach on Chilean table grape exports to the United States.

The cards in Chile’s favor

Unanimously, the executives condemned the decision of the Federal District Court of Columbia against the United States Department of Agriculture (USDA), which effectively suspended producers’ exemption from fumigating Chilean table grapes with methyl bromide.

Cristián Allende, former president of the National Society of Agriculture of Chile, emphasized that the interests behind the suit are unclear, as plaintiffs (various associations of California table grape producers) do not directly compete with Chilean table grapes.

Instead, the executive explained, Latin American fruit enters the US market during the North American winter, when California grapes are already on their way out.

Despite the complications generated by this ruling, Víctor Catán, president of Fedefruta and a member of the expert panel at Fruittrade, indicated that there are elements that favor the Chilean table grape fight for the reestablishment of the Systems Approach.

For starters, the union representative emphasized that the Chilean regions of Atacama and Coquimbo, both large producers of table grapes, do not present Lobesia botrana, also known as the European grapevine moth. This, Catán explained, should exempt Chilean table grapes from these regions from bromide fumigation, with or without the enactment of the Systems Approach.

“But since the United States sees the country as one and does not divide it into regions, we have that problem,” he indicated.

Catán also explained that the US government shutdown, which began in September and has the federal apparatus operating only at an essential level, is an advantage for Chileans. On the one hand, the shutdown extends the response period to appeal the decision of the Federal District Court of Columbia, and on the other, the lack of activities has prevented the signing that ratifies the ruling.

“Today we are in this process that is at a standstill,” added Rodrigo Susaeta, president of Copiapó Valley Association of Agricultural Producers and Exporters. “Because, in theory, today producers could export Chilean table grapes with the Systems Approach, since the decree has not yet been signed; that is the truth.”

The industry representatives concluded this part of the conversation by urging the government to take action to reestablish the protocol.

“We have to fight hard,” said Vicente Valdivieso, advisor to Uvanova. “A fumigated Chile is useless; it doesn't work. We have to get involved with the State, join forces with the industry, and fight to find an alternative.”

“Hopefully, all governmental and political agencies can demonstrate that, in reality, there is no technical reason not to let the Systems Approach work,” added Susaeta.

Tariffs, a big rock in Chile’s shoe

The conversation also touched on the commercial scenario affecting all countries doing business with the United States. Chile has been affected by a 10 percent tariff on its exports, which has impacted the country's fruit industry.

Here, the Fruittrade expert panel also appealed to the government, criticizing it for its absence and lack of effort to alleviate pressure on local growers and distributors.

“Chile is suffering a degree of complacency because the 10 percent tariff was not applied to copper,” said Martín Silva, advisor to Uvanova. “If a tariff had been applied to copper, I assure you that all authorities would be in Washington doing everything that needs to be done to make it right,” he stressed.

Víctor Catán also referred to the issue and expressed hope for the legal actions questioning the tariffs imposed by the Trump Administration. For the president of Fedefruta, these litigations could lead to a reassessment of the tariff on Chilean products, based on the Free Trade Agreement signed between the two countries in 2003.

For his part, Cristián Allende emphasized that, in his opinion, the tariff will not be passed on to consumers.

“Producers pay it. Nobody else pays it,” he said. “There is not even the possibility that the consumer pays it, because if they raise the price by 10 percent, inflation goes up first.”

Allende explained that the tariff must be deducted from the FOB cost, not from the sale, which, in his case, is equivalent to US$2 per box. On the other hand, he pointed out that in the citrus category, this calculation is reduced to an impact of 15 to 17 cents per kilo.

“That’s a lot,” said the executive. “We will have to think quickly about the changes, because we have varieties that just don't give us enough. And of those that do, if everyone puts them out there, the market may become depressed.”

At the close of the panel, Catán urged the industry once again to prioritize quality over quantity, arguing that this is how Chilean fruit can gain a foothold in the international market.

*All images are referential

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