TRADE UPDATE

Food & Agriculture
Jan. 28, 2025

By Kristy Goodfellow, Vice President of Trade and Industry Affairs, Sophia Vaccaro, CRA Trade Intern, and Charlotte McCourt, CRA Communications Intern

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HIGHLIGHTS

  • Trump Administration:
    • President Donald Trump sent an “America First Trade Policy” memorandum to federal agencies kicking off reviews of many U.S. trade policies and their effects on U.S. workers.
    • Agriculture Secretary nominee Brooke Rollins was asked about several agricultural trade and labor issues during her confirmation hearing with the Senate Agriculture Committee on Jan. 24.
  • Mexico: Mexico’s Agriculture Secretary proposed two constitutional amendments that would declare corn as an element of the country’s national identity and prevent the cultivation of genetically engineered corn in Mexico.
  • US-China: Select Committee on the Chinese Communist Party Chairman John Moolenaar (R-MI) and Rep. Tom Suozzi (D-NY) introduced the bipartisan Restoring Trade Fairness Act, which would end China’s Permanent Normal Trade Relations status in the United States.
  • International Organizations: OECD released a working paper that includes a systematic literature review and policy recommendations on how agricultural production systems can respond to the adverse effects of climate change.

“I am called to take agriculture, to preserve our rural communities, and take our products to the world and work around the clock to ensure that that sort of trade deficit begins to peel back—and hopefully, by the end of our time here in the next four years, is completely gone. And in fact, we are back in the positive and I believe we can do that.”

—–Brooke Rollins, responding to questions from Sen. Deb Fischer (R-NE) regarding the trade deficit during her Senate Agriculture Committee nomination hearing.

Trump Administration

TRUMP RELEASES “AMERICA FIRST TRADE POLICY” MEMO

  • President Donald Trump sent a memorandum directing federal agencies to implement his “America First” trade policies.
  • The memo calls for an investigation of the causes and implications of the persistent U.S. annual goods trade deficits, as well as a review of any unfair foreign trade practices. On Jan. 24, USTR followed through and announced the reviews.
  • Policies and regulations regarding the application of antidumping and countervailing duty (AD/CVD) laws shall be reviewed as well.
  • The America First Trade Policy memo notes USTR shall commence a public consultation process in preparation for the upcoming USMCA six-year review and to assess and make recommendations on the impact of USMCA on American workers, farmers, ranchers, service providers, and other businesses.
  • USTR is also directed to assess China’s compliance with the Phase I agreement and other actions by the country that may be unreasonable or discriminatory toward the U.S.
    • The agency shall make appropriate recommendations that could include the imposition of tariffs or other measures as needed. 
    • USTR announced the review on Jan. 24.
  • The memo also calls on USTR to review Section 301 Intellectual Property tariffs toward China and consider potential additional tariff modifications as needed, particularly concerning industrial supply chains and circumvention through third countries.
  • The Secretary of Commerce, in consultation with other relevant agency heads, shall conduct a full economic and security review of the United States’ industrial and manufacturing base. The review will assess whether it is necessary to initiate investigations to adjust imports that threaten U.S. national security.
  • The memo calls for most of the reviews and investigations to be completed by April 1, 2025.

NOMINATIONS AND HEARINGS

  • Agriculture Secretary nominee Brooke Rollins was asked about several agricultural trade and labor issues during her Jan. 24 confirmation hearing before the Senate Agriculture Committee.
    • Rollins acknowledged tariffs will be “a very important tool” to restoring the U.S. economy.
    • Rollins indicated the Trump Administration is prepared to financially compensate farmers for losses in a potential trade war.
    • Several senators questioned Rollins on the Administration’s plan for undocumented immigrant labor on farms. Rollins expressed support for Trump’s plan for mass deportation but also indicated she would work on reform of the H-2A Farm Labor Program.
  • Commerce Secretary nominee Howard Lutnick is scheduled to have a hearing on Jan. 29 before the Senate Commerce, Science and Transportation Committee.
  • A hearing for U.S. Trade Representative Jaimison Greer has not yet been scheduled.
Ag Secretary Nominee Brooke Rollins at her Jan. 24 Senate Agriculture Committee Confirmation Hearing (Photo: X/Twitter)

Mexico

NEW INITIATIVE FROM MEXICO DECLARES CORN AS NATIONAL IDENTITY

  • On Jan. 21, the Mexico’s Agriculture Secretary proposed to amend two provisions of their constitution.
  • The amendments would declare corn as an element of their national identity and prohibit the cultivation of GMO corn in Mexico.
  • The proposal states Mexico has a “strong regulatory framework” that demonstrates the country’s commitment to the conservation and sustainable use of biodiversity, in particular to the protection of native corn.
  • The proposal refers to corn as a “fundamental crop” in Mexico as it is “the staple food and the fundamental ingredient of Mexican cuisine.” The initiative cites how traditional Mexican cuisine was inscribed on the list of the intangible cultural heritage of humanity.
  • The constitutional amendments will now be considered by Mexico’s Chamber of Deputies.
  • The United States and Mexico are currently in a 45-day period during which they “shall endeavor to agree on a resolution” to the USMCA dispute in which the United States successfully challenged certain aspects of Mexico’s 2023 “Corn Decree.”

US-China

PROPOSED BILL WOULD INCREASE CHINESE TARIFFS

  • The Select Committee on the Chinese Communist Party Chairman Moolenaar (R-MI) and Rep. Tom Suozzi (D-NY) introduced the bipartisan Restoring Trade Fairness Act, which would end China’s Permanent Normal Trade Relations (PNTR) status in the United States.
  • The Resorting Trade Fairness Act was first introduced in Nov. 2024 without a Democratic co-sponsor.
  • The new tariff column for China would create a minimum 35% tariff for all non-strategic goods and a minimum 100% value-based tariff for all strategic goods.
  • According to a release from the bill sponsors, the revenue from increased tariffs would be spent on U.S. farmers and manufacturers impacted by potential Chinese retaliation and purchasing munitions to combat China in the South China Sea.
  • In a statement, Moolenaar said the bill “is a critical step toward ending the unfair economic practices of the Chinese Communist Party that have hurt American workers and weakened our national security.”

International Organizations

OECD REPORT ON AGRICULTURE AND CLIMATE CHANGE

  • The Organization for Economic Cooperation and Development (OECD) released a working paper that includes a systematic literature review and policy recommendations on how agricultural production systems can respond to the adverse effects of climate change.
  • The paper explores examples of agricultural transformation in response to climate change, emphasizing the need for adaptations that are high in breadth, depth, and speed.
  • The findings highlight lessons from past efforts, identify barriers to transformative adaptation, examine how public policy can effectively address these changes, and offer valuable insights into improving the climate-resiliency of agricultural systems.