HS Code:
The category 'Subject to the EU reduced export refund in accordance with the US-EU Pasta Agreement' pertains to specific pasta products under the Harmonized System (HS) Code related to food preparations of cereals, flour, starch, or milk (likely falling under HS Chapter 19, specifically around 1902 for pasta). This category is governed by a bilateral agreement between the United States and the European Union, established to regulate trade imbalances and subsidies on pasta exports. Under this agreement, the EU agrees to reduce export refunds (subsidies) on pasta shipped to the US, ensuring fair competition and addressing historical trade disputes from the 1980s. The agreement aims to stabilize market access and pricing for pasta products while adhering to WTO guidelines on agricultural subsidies.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
World Trade Organization (WTO) and Eurostat data
$800 million USD
66.7% of total trade of total trade
Increasing
$250 million USD
20.8% of total trade of total trade
Stable
$100 million USD
8.3% of total trade of total trade
Increasing
$30 million USD
2.5% of total trade of total trade
Stable
$20 million USD
1.7% of total trade of total trade
Decreasing
Average Rate
6.5% ad valorem
Highest Rate
12% (applied by certain non-EU countries outside the agreement)
Lowest Rate
0% (within US-EU agreement framework for specific quotas)
Growing demand for premium and organic pasta
Increased exports of high-value pasta products from Italy to the US, driving trade volume growth despite reduced subsidies
2021-2022
Shift towards sustainable production
EU producers adopting eco-friendly practices to meet US consumer preferences, influencing cost structures and pricing
2020-2022
Rising competition from non-EU producers
Countries like Turkey and Canada are increasing pasta exports to the US, challenging EU market share under reduced refund conditions
2019-2022
Negotiations in early 2023 focused on revisiting terms of the Pasta Agreement to address modern trade dynamics and inflation impacts on export refunds.
March 2023
Potential adjustments to refund reduction schedules could stabilize pasta prices in the US market.
The EU announced a broader reduction in agricultural export subsidies, aligning with WTO commitments, further impacting pasta export refunds.
December 2022
Reduced competitiveness of EU pasta in price-sensitive markets outside the US, redirecting focus to quality differentiation.
The US conducted a review of pasta import tariffs under Section 301, maintaining current rates but signaling openness to quota expansions.
September 2022
Encourages EU exporters to maintain or increase shipments within agreed limits, fostering trade stability.