Tariffs and Trade Barriers on Ag Products Still a Mixed Bag

Work continues to reduce or eliminate trade barriers on U.S. ag products. Ag Secretary Tom Vilsack says the European Union has allowed the U.S. more time to satisfy health certificates for livestock. “We were deeply concerned that might impact and affect about a billion and a half dollars of the livestock sales in the EU and we continue to work with them to make sure the health certificate is doable and practical.”

Vilsack says there’s good news with Vietnam. “A number of tariffs have been reduced – a number of SPS barriers on our products have been reduced.”

But Kansas Senator Jerry Moran says tariffs on phosphates from Morocco are having consequences for producers. “Those tariffs are in place and this administration seems to be intending to extend them and we’re seeing significant increases in the cost of fertilizer. And, when farmers talk to me they want to make sure I haven’t forgotten about input costs,” Moran says.

Vilsack and Moran made their comments at the recent Ag Outlook Forum in Kansas City. 

EDITOR’S TAKE:

Once trade tariffs and barriers are in place, it immediately distorts trading patterns and blocks efforts to attain “fair trade”. They seem to be more difficult to remove than to put in place. It appears there is progress to remove them on some fronts, but other products remain locked into cost-escalating tariffs. These trade distortions not only increase the cost of imported goods, but block opportunities for increasing income when exporting our commodities to others. Your CAD team applauds any efforts to reduce such trade barriers wherever possible. Putting more money in a farmer’s pocket is good for future truck sales.