Senators push for answers on ‘unambitious’ trade strategy

By TAMMIE SLOUP
FarmWeek

A group of senators lambasted the Biden administration’s “unambitious” trade strategy, calling for answers pertaining to planned actions and intentions to pursue free trade agreements.

The letter was sent March 13 to USDA Secretary Tom Vilsack and U.S. Trade Representative Ambassador Katherine Tai, and led by Minority Whip John Thune, R-South Dakota; Senate Ag ranking member John Boozman, R-Arkansas; and Sen. Mike Crapo, R-Idaho, along with 19 of their colleagues.

Pointing to the projected $30.5 billion agricultural trade deficit in fiscal year 2024, the senators urged the administration to “immediately take action to improve the competitiveness of the U.S.”

“The current sharp decline in U.S. agricultural exports is directly attributable to and exacerbated by an unambitious U.S. trade strategy that is failing to meaningfully expand market access or reduce tariff and non-tariff barriers to trade,” the letter states. “While the Biden administration continually refuses to pursue traditional free trade agreements, China, Canada, the European Union, the United Kingdom, and others continue to ink trade pacts that diminish American export opportunities and global economic influence.”

The senators said diminishing access to foreign agricultural markets for U.S. industries creates significant economic headwinds and jeopardizes the livelihoods of more than 1 million American workers, farmers and ranchers, as well as millions more U.S. jobs throughout the export supply chain.

They called on Vilsack and Tai to answer two questions within 14 days:

• What specific actions does the Biden administration plan to take to increase U.S. agricultural exports in 2024?
• Does the Biden administration intend to pursue new or improved free trade agreements with any countries to obtain new market access for agricultural products in 2024?

“We further ask the Biden administration to take steps to analyze and consider the relationship between U.S. competitiveness and market share in foreign agricultural markets with negotiated tariffs, tariff rate quotas and other market access provisions,” the letter states.

During the most recent quarterly outlook for fiscal year 2024, USDA’s Economic Research Service and Foreign Agricultural Service projected $170.5 billion in agricultural exports and $201 billion in imports. If the forecast holds true, the trade deficit — $30.5 billion — would be the largest ever, and nearly double the current record of $16.7 billion for fiscal year 2023.

The Biden administration has countered that part of the reason for the deficit is the result of a strong U.S. dollar.

“The U.S. dollar is forecast to appreciate into calendar year 2024 at 1.8% globally, which continues to expand U.S. imports while presenting a challenge to U.S. exports,” the quarterly outlook stated.

The senators’ letter follows a letter sent to the same recipients last month and signed by more than 20 U.S. representatives urging “strong support and swift action to bolster U.S. food and agriculture trade opportunities and expand market access for farmers and ranchers in new and key markets.”

The recently launched Bipartisan Congressional Agricultural Trade Caucus also penned a letter last month calling on USDA and USTR to develop a coordinated effort to get countries to reduce tariff and non-tariff barriers for American agricultural exports.

 

This story was distributed through a cooperative project between Illinois Farm Bureau and the Illinois Press Association. For more food and farming news, visit FarmWeekNow.com.