MEXICO, June 21, 2004 -- *CONGRESSMEN CRITICIZE USABIAGA FOR SUGGESTING THAT FARMERS STOP PRODUCING CORN *FARMERS: USABIAGA SHOULD REVIEW HIS RECORDS TO SEE IF HE IS MEXICAN *LOW BEEF PRICES BENEFIT MEXICAN CONSUMERS *TRADE CONFLICT WITH THE UNITED STATES DUE TO MEAT PRODUCTS *THE FUTURE OF MANY MEXICAN FIRMS IS IN EXPORTS *SUPREME COURT VERDICT IN FAVOR OF MEXICAN TRUCKERS *MEXICAN TRUCKER SUES THE UNITED STATES *BEER IS LEADING ALCOHOLIC DRINK IN MEXICO *HEB SUPERMARKETS POSE STIFF COMPETITION FOR WAL*MART IN NORTHERN MEXICO *TOURISM SURGE IN MEXICO

VIETNAM, June 21, 2004 -- Export rice prices were stable and mostly unchanged from end of the previous week in response to weak market demand.

THAILAND, June 21, 2004 -- Export prices changed insignificantly, except prices for fragrant rice which continued to decline. However, parboiled rice exports are considerably active.

JAPAN, June 21, 2004 -- This report contains country information on the maximum residue limits of pesticides in crops and foods as of June 2004.

ITALY, June 21, 2004 -- Italian tomato production is expected to reach a record high in 2004/05. Favorable climatic conditions and low stock are boosting plantings. Production for processing is expected up by 10% from 2003/04 at 5.8 million tons. EU Common Agricultural Policy remains a key driver of the industry and is creating some concern about its future perspectives.

ZIMBABWE, June 21, 2004 -- Zimbabwean oilseed production seems to have survived the land reform process. The 'new farmers' are set to expand production with cotton leading the way. Total oilseed production is set to increase to 339,000 tons this year after 316,000 tons were produced in 2002. With the predominance of cottonseed in the mix, a surplus of cottonseed meal is looming while plant oils will still be short.

CHILE, June 21, 2004 -- Chile's tomato paste industry reduced exports in the last quarter of CY2003 in an effort to take advantage of an expected export price increase as a result of a significant fall in tomato production in Italy.

MEXICO, June 21, 2004 -- On May 25, 2004, Mexico published its final Resolution on the appeal for reinstatement of compensatory duties on imports of live hogs for slaughter originating from the United States. The decision upholds the decision taken on May 23, 2003 to eliminate the $0.351 dollars per kilogram compensatory duty, maintaining the tariff on imports of live hogs for slaughter at zero.

MEXICO, June 21, 2004 -- After ruling against a previous dumping investigation requested by the Mexican Council of Swine Breeders (CMP) on a range of pork products (see MX4077), the Mexican government has officially announced initiation of a subsequent investigation on dumping charges filed against importers and exporters of U.S. pork legs.

KOREA, REPUBLIC OF, June 21, 2004 -- The total value of coffee imports in 2003 was $93 million, a twenty percent increase over the previous year. The United States has a sizeable market share of roasted coffee bean imports and a growing share of instant coffee imports.

JAPAN, June 21, 2004 -- The 2003/04 season's U.S. grapefruits sold in record numbers, with imports up 18 percent in the first half of the season. The nation's stock levels in the final stage of the season have Japanese citrus traders concerned, however. High quality U.S. oranges also sold well this season, with imports up 12.3 percent in the first half of the season. While consumption was stable, imports of U.S. lemons declined 6.6 percent in the first half of the season, with competition from Chile and South Africa increasingly supplying Japan's summer citrus market.

KOREA, REPUBLIC OF, June 21, 2004 -- MY 2004/05 Jeju citrus production is projected to exceed 700,000 Metric Tons (MT), a 15-percent increase from the previous crop. Jeju is working to reduce the amount of fruit released into the fresh citrus market to 430,000 MT. On April 27, 2004, Korea placed a temporary suspension on orange imports from the California counties of Tulare and Fresno, due to purported detections of Septoria citri. USDA is working with Korean officials to resume orange exports from those two major orange producing counties.

VIETNAM, June 21, 2004 -- This report is an introductory guide for U.S. exporters of high-value consumer-oriented foods and beverages wishing to enter the Vietnamese market. The ever-changing Vietnamese import regulations and restrictions are described, as are the best export prospects.

EU-25, June 21, 2004 -- On June 10, 2004 the OECD published Analysis of the 2003 CAP Reform. The report quantifies possible price, production, and trade effects of the Common Agricultural Policy (CAP) reform for the EU-15. Based on their analysis, the authors conclude that the CAP reform will decrease Price Support as well as trade and market distortions. According to the report, the expected impacts of the reform include a shift from crop to pasture land, significant extensification, and an initial decrease in producer prices for cereal followed by a recovery for wheat and an increase for coarse grains. The report also predicts a decrease in beef inventory. Dairy markets will experience minimal impact from the 2003 CAP reform because Agenda 2000 has already introduced many policy changes, such as intervention price cuts. Also, there will be small increases in world crop prices, except for rice.

DENMARK, June 21, 2004 -- This report outlines the requirements for food and agricultural imports into Denmark. The report is meant to assist U.S. exporters with labeling, lists of permitted ingredients, packaging rules and import documentation requirements. It also provides contact information for Danish government and inspection services which oversee and control the importing process. Major revisions to previous reports include reference to EU regulations and the EU labeling and traceability requirements effective April 18, 2004, (See Section VII).

MEXICO, June 21, 2004 -- Mexican asparagus production for MY 2004 is forecast at 65,000 MT, a slight decrease from last year, due to adverse weather conditions. Exports are forecast at 50,000 MT, of which approximately 45,000 MT will be shipped to the United States. The U.S. and Japan will continue to be the main export markets for Mexican green asparagus.

ROMANIA, June 21, 2004 -- Favorable weather conditions have contributed to a positive outlook on MY 2004/2005 crop harvests for Romanian wheat - 6.1 MMT, barley - 1.25 MT (both winter barley and two-raw barley), and corn - 9.3 MMT. Unlike the previous year, when Romania imported about 1.9 MMT of wheat and significant amounts of barley and corn, production is expected to meet domestic demands and traders are planning to export some grains this year. As winter crop development was very timely aided by substantial rainfalls in May and June in most growing regions, FAS Bucharest revises up its May estimated average yields as follows: 3.4 MT/HA (from 2.8 MT/HA) for wheat; 3.5 MT/HA for winter barley (from 3.1 MT/HA); 3.1 MT/HA (from 2.9 MT/HA) for corn.

ROMANIA, June 21, 2004 -- The most sensitive chapter in Romania's negotiations with the European Union, Chapter 7 - Agriculture, has been provisionally closed on June 4 in Brussels. (The outcome will be officially presented at the June 17-18 EU Summit). The EU position, as described in the documents of the Romania-EU Accession Conference, can be generally assessed as a success for the GOR, since good results were obtained in five strategic areas: rural development, grain and feed crops, cattle breeding, wine and wine industry, and food processing (especially sugar and dairy production). Romania also received long transitional periods in the sanitary-veterinary and phyto-sanitary sectors until the full adoption of the acquis, while also obtaining recognition and protection for several geographic and origin brands. These favorable terms are not as much the result of the talks held by the GOR negotiators with the European Council, as they can be attributed to the fact that Romania benefited from the principle that it was to be applied a treatment consistent with measures provided for the ten new Member States.

JAPAN, June 21, 2004 -- From America's largest overseas food and agricultural export market as translated from Japan's mass media and food industry news. This issue includes: A possible sign of saturation in the Japanese convenience store sector; The Aeon Group plans to open 20 new large-scale shopping centers over the next three years; Tesco, of the U.K. expands its store network in Japan to more than 100 outlets via another acquisition; Sales among the four major beef gyudon chains decline in March; Japan's functional food category is estimated to have reached 5.7 billion yen in 2003 and; The Nikkei Marketing Journal's consumer survey shows that food safety continues to be a major concern for Japanese consumers.

NEW ZEALAND, June 21, 2004 -- Residues in food products imported into New Zealand need to be lower than either Codex Maximum Residue Limits (MRLs), New Zealand's domestic MRL standard, or New Zealand's default standard. Although New Zealand has a well-developed policy regarding MRLs for domestically produced food products, MRL policies related to imported food products are currently in the early stages of a review process by the government of New Zealand to provide additional clarity.

CHINA, PEOPLES REPUBLIC OF, June 21, 2004 -- China's estimated 2003 seafood production should reach an astonishing 47 MMT with nearly 60 percent of production from aquaculture. Seafood processors demand for both direct and bonded aquatic product imports continues rising and nearly reached $1.9 billion in 2003 while exports surpassed $5 billion.