TRADE UPDATE

Food & Agriculture
Oct. 1, 2024

By Kristy Goodfellow, Vice President of Trade and Industry Affairs and Ameya Khanapurkar, Trade Intern

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HIGHLIGHTS

  • US Port Strike: U.S. East and Gulf Coast dock workers are set to strike on Tuesday, Oct. 1, if a labor agreement is not finalized.
  • G7: Agriculture Secretary Tom Vilsack represented the United States at the G7 Ministers’ Meeting on Agriculture in Italy focused on the resilience and sustainability of agriculture and food systems.
  • United Nations: The 79th session of the United Nations (UN) General Assembly included discussion and progress on several food and agricultural issues and a political declaration on Antimicrobial Resistance (AMR). Climate Week NYC 2024 took place in conjunction with the UN General Assembly.
  • Tariff Legislation: Rep. Jared Golden (D-ME) introduced the BUILT USA Act, which would levy a 10% tariff on all imports.
  • Trade Preference Programs: The National Corn Growers Association and 25 other food and agricultural groups wrote a letter to the Senate Finance Committee and House Ways & Means Committee encouraging the reauthorization of the Generalized System of Preference (GSP) program, which expired in 2020.
  • WTO: On Sept. 25, the European Union requested a WTO dispute consultation regarding China’s anti-subsidy investigation on certain EU dairy products, which the EU alleges to be retaliatory.

“I’m very encouraged by the consensus and synergies between what the U.S. is doing on a variety of fronts and what the G7 has suggested needs to be done in order to continue to approach the challenge of dealing with global food security, increasing agricultural production, and at the same time, making sure that small- and mid-size farming operations are able to succeed — not just in the United States, but around the world.”

———Agriculture Secretary Tom Vilsack

Transportation

US Port Strike Imminent

  • U.S. East and Gulf Coast dock workers are set to strike on Tuesday, Oct. 1, if a labor agreement is not finalized.
  • Fifty-five agriculture groups on Wednesday urged President Joe Biden to act before a lockout or strike occurs if there is not an agreement between the International Longshoremen’s Association and the United States Maritime Alliance.
  • The letter states that “approximately 40 percent of U.S. containerized agricultural exports move through East and Gulf Coast ports.”

G7

Ministers’ Meeting on Agriculture

  • Agriculture Secretary Tom Vilsack represented the United States at the G7 Ministers’ Meeting on Agriculture in Italy from Sept. 26-28.
  • The discussions focused on the resilience and sustainability of agriculture and food systems.
  • In Vilsack’s remarks from Italy, he said he was “very encouraged by the consensus and synergies between what the U.S. is doing on a variety of fronts and what the G7 has suggested needs to be done in order to continue to approach the challenge of dealing with global food security, increasing agricultural production, and at the same time, making sure that small- and mid-size farming operations are able to succeed — not just in the United States, but around the world.”
From g7.italy.it

United Nations

General Assembly

  • Last week’s 79th session of the United Nations (UN) General Assembly included discussion and progress on several food and agricultural issues.
  • The Sustainable Development Goals (SDGs), including reshaping food systems to alleviate hunger and preserve nature, were discussed during the “SDG Moment.”
  • On Sept. 26, leaders finalized a political declaration during the High-Level Meeting on Antimicrobial Resistance (AMR), notably including targets and proposed action.
  • Additionally, numerous food and agriculture-related side events were held, including a session on advancing climate action through sustainable agriculture and resilient foods and improving food security at the nexus of climate, land degradation, and biodiversity.
  • Climate Week NYC 2024 took place in conjunction with the UN General Assembly. During Climate Week, AIM for Climate, a joint initiative by the United States and the United Arab Emirates, released a new report advocating for greater public and private investment in climate-smart agriculture and food system innovation. The report highlighted investment barriers and successful case studies while offering key recommendations to institutionalize progress within climate policy frameworks.

Tariff Legislation

Rep. Golden Introduces BUILT USA Act

  • Rep. Jared Golden (D-ME) introduced the BUILT USA Act, which would levy a 10% tariff on all imports.
  • Golden highlights that employment in manufacturing in Maine has dropped from 40% of non-farm jobs 70 years ago to 10% today.
  • “America must once again become a nation of producers, not just consumers. Decades of globalization have transformed our country from an industrial superpower to one that relies on other countries for basic goods,” Golden said in a statement.
  • Golden has previously expressed support for raising tariffs. In May, he introduced legislation seeking to raise tariffs on Chinese automobiles and energy components.

Trade Preference Programs

Agriculture Groups Urge Reauthorization of Trade Program

  • The National Corn Growers Association and 25 other food and agricultural groups wrote a letter to the Senate Finance Committee and House Ways & Means Committee encouraging the reauthorization of the Generalized System of Preference (GSP) program, which expired in 2020.
  • GSP allows developing countries to avoid duties on certain products exported to the United States.
  • GSP also provides an opportunity to focus on eliminating trade barriers and adherence to international standards.
  • The letter notes that GSP can “help motivate negotiations,” which ultimately provide U.S. exporters more market access.

WTO

EU Disputes Chinese Anti-Subsidy Investigation

  • On Sept. 25, the European Union requested a WTO dispute consultation regarding China’s subsidy investigation on certain EU dairy products.
  • The EU is concerned the investigation is retaliation for the EU’s findings in a separate battery electric vehicle investigation.
  • The EU argues China did not include sufficient evidence of the existence of a countervailable subsidy, of injury, and of a causal link between subsidized imports and alleged injury.