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100% duty on Italian mineral water on hold in US

Legislation which would place a 100% tariff on Italian mineral water imported into the United States has been put on hold by the new Obama administration.

Italian mineral water was added to a revised list of European Union food and beverage products on which the US had imposed additional import duties by the ex-president George W Bush in retaliation for an EU ban on American beef raised using hormones, which is outlawed in Europe.

Last week, European Affairs Minister Andrea Ronchi said he was hopeful that that the US will revoke the measure before 23 March, the day when the new tariffs are now set to go into effect.

Besides Italian mineral water, hiked import duties have been applied to hams, sausages, truffles, chocolate and pears made in 25 EU counties. The only country not penalised by the higher duties is the UK, which permits US beef imports. The hardest-hit product was French Roquefort cheese, which will see its duties tripled to 300%.

According to Ronchi, the US tariffs represent a new protectionism that the Italian government needs to combat. "We cannot allow these measures to have repercussions on employment," he said.

The US absorbs 40% of Italian mineral water exports and the sector employs more than 50,000 people in Italy. Ronchi addressed the tariff issue during talks with Czech officials. The Czech Republic holds the EU rotating presidency for the first half of the year.

A Nestlé Waters spokesperson has reportedly called the issue "a terrible time to spark a trade battle and an even worse time economically, to put jobs in danger and add more challenges. If enacted, the tariff would cost companies like our jobs.”

Nestlé Waters imports a number of water brands into the US from Italy, including S.Pellegrino and Acqua Panna. Other Italian water brand owners that focus on the US for major volume sales have contacted Water Innovation magazine recently to express their concerns over the increased duties. However, they are also cautiously optimistic that the decision will be reversed soon.

Related links:

• Roquefort hit by US tariffs