In an arcane piece of trade regulation the new administration of President Trump has put a hold on regulations allowing the import of lemons from Argentina, Bloomberg reports. While carried out by the USDA, this is likely part of the broader review of the Generalized System of Preferences. This is one of the more complex early areas of trade policy the administration faces, as discussed in Panjiva research of December 30, but not one that has been widely discussed so far.

Decisions made regarding the GSP may provide the Trump administration with leverage in other negotiations such as that of NAFTA. For example, Mexico is the largest supplier of lemons to the U.S., Panjiva data shows, with $398 million of the fruit shipped, and likely increased by over 4.0% in 2016 vs. 2015. Allowing Argentine imports would damage Mexican interests.

Calculations based on U.S. volume data through November 30, with December based on U.S. seaborne and Mexican truck export data Source: Panjiva