Agriculture Groups Want More Trade Deals

A new report summarizing town halls convened by Farmers for Free Trade says the elimination of the steel and aluminum tariffs on Canada and Mexico “went a long way toward stabilizing these export markets,” and that grain prices have recovered, but that more free trade deals are critical to support farmers and rural economies. The report, released Dec. 15, was highlighted in a webinar.

The report said that while China is behind on its commitment to buy $36.6 billion in U.S. food and agricultural commodities, there has been “encouraging activity” with poultry and noteworthy purchases of soybeans and corn, though no movement on dairy. The report said exports to China fell 63% during the trade war.

“U.S. food and agriculture highly recommends concluding a Phase Two agreement with China and re-engaging in trade negotiations with Southeast Asian nations,” the report said. Southeast Asia, the Middle East and North Africa will be important markets for dairy exporters, the report said.

“A majority of the food and agricultural sectors participating in [the town halls] agree that Asian engagement should be focused on large consuming nations such as the Philippines, Bangladesh, Indonesia and Vietnam with a particular emphasis on those nations already in or currently negotiating with competitors from the Oceania region and the European Union.”

The agricultural interests are particularly concerned that the EU not export its non-tariff barriers, such as regarding antibiotic use, genetically modified organisms (GMOs), pesticide residues and farm to fork rules on antimicrobial applications, pesticides and fertilizers. They are concerned that Europe could convince trading partners to follow these standards as part of free trade agreements.

But, they note, the U.S. has not been blameless on nontariff barriers and technical barriers to trade. “Observers note that a recent willingness of the U.S. to employ such measures in the fresh fruit and vegetable sector may further embolden other nations to adopt” such restrictions.

Jaime Castaneda, senior vice president of international trade for the National Milk Producers Federation, said during the webinar that a trade deal with the United Kingdom would be significant for agriculture, but noted that the shape of the Brexit could influence how much flexibility the U.K. has to accept U.S. agricultural products.

The groups want a trade deal with Kenya completed and a strategy to rejoin the Trans-Pacific Partnership.

Castaneda said Katherine Tai, the proposed U.S. trade representative for the Joe Biden administration, is very intelligent, dedicated and open to stakeholders, and that his group has talked with her often about both TPP and the Transatlantic Trade and Investment Partnership. “I think there will be opportunities for U.S. agriculture” market access during the next administration, he said. “We have not negotiated and passed an agreement for so long, and we are way behind all our competitors.”