Trump’s USTR Pick Pledges to Open New Markets for U.S. Ag, Biofuels

Jamieson Greer, President Trump’s pick to lead the Office of the U.S. Trade Representative, pledged to secure new markets for U.S. ag – singling out countries like India and Turkey for their high tariff barriers – and he promised to quickly review China’s shortcomings under the phase one deal. 

In a memorandum outlining his vision for U.S. trade policy, the President directed the Office of the USTR to review whether China had lived up to its trade commitments under the phase one deal, which included purchase commitments for U.S. agriculture products worth around $30 billion above 2017 import levels.

Greer said he would oversee that study and “very quickly” bring China into compliance.

“It is of critical importance that China wants to trade with the United States,” Greer said, “but that relationship should be predicated on fair market access for our exporters.”

The USTR nominee argued that the administration and Congress need to reevaluate what the U.S.-China trade relationship looks like moving forward.

Greer also told the Senate Finance Committee at his confirmation hearing that he would also seek to lower tariff barriers in the biofuels sector.

“Agriculture is something that is near and dear to my heart. I was raised in northern California, that’s rice country and almond country,” Greer told the committee. “American agricultural producers are the most competitive in the world, and they need to have markets commensurate with that competitiveness.”

Greer, a trade lawyer and Air Force veteran, lamented that while the U.S. has lowered its tariffs in recent decades while partners have kept duties on U.S. agriculture exports high, naming Turkey and India as two countries with sky-high duties. “They need to open to the United States,” Greer said.

Greer served as chief of staff to USTR Robert Lighthizer during Trump’s first term. In that role he worked on the U.S.-Mexico-Canada Agreement, which updated the earlier North American Free Trade Agreement to reduce trade barriers between the three North American nations.

In a second term, Greer suggested the administration would pursue a bilateral, or sectoral-based, approach to opening new markets.

“We need to have a pragmatic trade policy where we’re looking – sometimes sector-by-sector, sometimes economy-wide, often on a bilateral basis – how can we have very competitive terms of trade between us and the Western world,” Greer said. 

But Greer stressed that he wanted to be “careful” with which countries the U.S. should pursue free trade deals.

“I don’t want to be in the position of going to a country that has a $50 billion trade surplus already,” he said. But he added that a sectoral deal with “like-minded countries who are aligned with us on security, rule of law” might make sense.

Iowa Republican Senator Chuck Grassley stressed to Greer that he would like to see the U.S. look for opportunities to deepen trade with smaller countries that are often overlooked in international trade but hold untapped promise.

“If we can be thoughtful in going to other countries where we see real concrete areas of advancement, we should pursue that,” Greer said, adding that he wanted to explore where the U.S. can get the most “bang for our buck.”

In addition to targeting specific markets, Greer also said that he would prioritize lowering trade barriers in certain industries, including biofuels. Multiple senators pointed out that while Brazilian ethanol enjoys duty-free access to the U.S. market, U.S. producers face an 18% tariff when exporting into the Brazilian market.

“I have a lot of things at the top of my list, but this is one,” Greer said. “The U.S., he added, will need to use leverage wherever it can to compel Brazil to lower the tariff. You could certainly go to somebody like the Brazilians and say, ‘you need to fix this,’ but it has to be followed up with, ‘or else.’”

His comments on opening overseas markets for U.S. agriculture were well received from senators from both parties. 

Senator Maria Cantwell, D-Washington, told Greer that she hadn’t agreed with his predecessor’s trade approach. Cantwell argued that the Biden administration did not spend sufficient time trying to open foreign agriculture markets for U.S. producers.

EDITOR’S TAKE:

It appears that Mr. Greer has the experience, focus and support of President Trump to be a success as the new USTR. As Senator Cantwell pointed out during the hearing, the previous administration “did not spend sufficient time trying to open foreign agriculture markets for U.S. producers.” Mr. Greer indicated a clear desire to pursue new markets and make trade more fair and open. This should be welcome news for U.S. farmers/ranchers. As we have pointed out many times previously, exports are essential to market our crops and livestock and contribute to their overall financial well-being. And, after all, the success of those farmers/ranchers ultimately help create your success. Be sure to maintain your presence and keep your inventory updated on AgTruckTrader.com®.