Duty-free US prunes raise competitive pressure on France’s Agen industry

Tariff removal changes the competitive balance

US prunes have been able to enter the European Union without customs duties since July 1, after a trade agreement between the United States and Europe removed the previous 9.6% tariff. France’s National Interprofessional Prune Bureau, or BIP, says the measure exposes domestic growers and processors to stronger competition from the world’s second-largest producer.

According to La Dépêche, an annual average of 7,675 tonnes of US prunes entered the European Union and the United Kingdom between 2020 and 2025. The French industry fears that shipments could rise substantially now that the tariff barrier has disappeared. The source provides no forecast for the additional volume, but even a limited increase could affect contracts and prices in a mature market.

The BIP also objects to the way the decision was made. It says the French prune industry was neither informed nor consulted by French or European authorities before the tariff was removed. The organization argues that the consequences will be felt across orchards, processing companies and farms in southwestern France.

Agen’s quality protection does not prevent price pressure

The protected geographical indication for Pruneaux d’Agen safeguards the product’s name and emphasizes origin, traceability and quality. It does not, however, prevent imported prunes from competing in other retail and industrial segments. French suppliers therefore expect greater pressure on selling prices, including in their domestic market.

The American industry is not the only duty-free competitor. Chile, described by La Dépêche as the world’s largest prune producer and exporter, has enjoyed duty-free access to the European market since 2003. A trade agreement with Mercosur is also expected to provide wider access for products from Argentina.

For French operators, the combination of US, Chilean and prospective Argentine competition matters across the supply chain. Growers face the risk of losing market share, processors may gain more sourcing options, and traders and retailers could use additional imported supply in price negotiations. The effect will depend on shipment growth, product positioning and buyers’ willingness to pay for the Agen designation.

Industry challenges differences in production rules

The BIP says competitors operate under agricultural rules that differ substantially from those applied in France. According to the organization, 52 insecticide molecules and 35 fungicide molecules authorized in Chile are prohibited in France. In Argentina, it says 48 insecticide substances and 37 fungicide substances may be used despite not being approved in France.

These figures do not establish the residue profile of individual imported products, but they underpin the French industry’s argument that producers are competing under unequal cost and regulatory conditions. French orchards must comply with increasingly demanding environmental and sanitary requirements while contending with fruit that the BIP says can be produced more cheaply under different standards.

Sector seeks government action

The French prune industry supports nearly 10,000 direct and indirect jobs, according to La Dépêche. Its concerns therefore extend beyond farmgate prices to employment in processing, logistics and related services in the southwest, particularly around Lot-et-Garonne.

The BIP has contacted France’s agriculture minister and is seeking a policy response. Its immediate challenge is to defend the competitiveness of French production after the tariff removal while preserving the value of the Agen origin. For buyers and traders, the new regime expands potential supply; for French producers, it removes a 9.6% layer of protection at a time when competition from other origins is already established.