Biden Administration Offers Ag Trade Strategy

Moving forward, the Biden administration continues to look to uphold current trade agreements, rather than make bold steps outward on advancing ag market access. Both Secretary of Agriculture Tom Vilsack and U.S. Trade Representative Ambassador Katherine Tai spoke during the annual meeting of the National Association of State Departments of Agriculture (NASDA).

As exports to China continue to look promising of at least getting close to the ambitious goals set out by the Trump Administration Phase 1 trade deal, farmers may not be out of the water yet on trade frictions with our number one ag export destination.

Vilsack says this administration continues to put pressure on China to live up to its requirements and promises it made in Phase 1. “We’re going to continue to press them to meet their obligations and responsibilities as we continue that relationship, which is obviously important to American agriculture,” Vilsack adds.

Tai also says she understands the importance and interest of the American farm sector to maintain market access to China. She assured NASDA members that her staff continues to work with China, including those related to ag market access and purchases. “I want to ensure everyone how serious we take this relationship. We know it is one of the most consequential relationships of our time. It’s worth taking the time to get it right,” she says.

USMCA also on radar

Vilsack and Tai both say they’ve raised issues with their Mexican counterparts on their biotech acceptance actions under the U.S.-Mexico-Canada Agreement (USMCA). “We will continue to press Mexico for compliance with the terms and conditions of the USMCA whether its Genetically Engineered corn or other issues that separate us,” Vilsack says.

A recent ruling on the Mexican potato market is also still high on the watch list, according to Vilsack, which has been dealt with over multiple administrations over the course of the last 15 years. He expects potato trade to resume in the next month.

Tai shared that their office requested and established a dispute settlement panel on Canada’s dairy tariff rate quotas. As the first enforcement action taken under the new USMCA, Tai says it is important to hold trading partners accountable.

Vilsack says that now that the Canadian elections are over, he’s hoping to find ways in which to break down barriers that exist.

Expanding trade elsewhere

Although Tai says this administration looks to focus on enforcing existing agreements, there are also additional ways to expand existing trade frameworks, advocate for reforms at the World Trade Organization and integrate farmers’ action on climate change into the opportunity to open up new market opportunities.  

Tai says she remains in close touch with her counterparts in the United Kingdom and Kenya, which both began trade expansion discussions during the Trump administration. The meetings reinforced a commitment to working on continuing and deepening the shared trade economies.

Many countries also have Trade & Investment Framework Agreements – or TIFAS – which include Indonesia, Taiwan and a similar type framework with India. Tai says these allow for addressing trade barriers, while not needing Congressional approval. She did not say she would be seeking Trade Promotion Authority which offers Congress an up or down vote on any negotiated deal the executive branch makes, but did promise ongoing coordination and consultation on trade matters with Congress.  

Vilsack says the U.S. recently had success in Vietnam in loosening its requirements on trade with U.S. ag products, most notably reducing import tariffs on U.S. pork products, corn and wheat. Vietnam is the seventh-largest market for U.S. agriculture.  

“This is an important country for us and important relationship for us to continue to evolve and develop now,” Vilsack says of Vietnam. We're going to continue to look for ways in which we can reduce the barriers and the friction that may exist between our country and other countries.”

EDITOR’S TAKE:

This appears to be good news for American agriculture. Building on the solid foundation built by the Trump Administration seems appropriate given all the other tensions that exist in geopolitical circles today. Making certain that the agreements negotiated in good faith are executed properly will certainly aid farm trade opportunities for our farmers/ranchers. In addition, ensuring that barriers continue to be eliminated or reduced is also a very positive step. Then to continue discussions that create bi-lateral trade agreements will be like the cherry on top of the ice-cream sundae. Trade is so vital to the success of U.S. agriculture and will only help boost future income and purchasing power for our farmers/ranchers.