TRADE UPDATE

Food & Agriculture
Oct. 8, 2024

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

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HIGHLIGHTS

  • European Union: The European Commission, in response to calls by global partners, proposed additional preparation time for concerned parties to implement its controversial deforestation law. If approved, the EU law will take effect at the end of 2025 for large companies and mid-2026 for small companies.
  • Mexico: Following her Oct. 1 inauguration, Mexican President Claudia Sheinbaum outlined 100 commitments for the next six years, including one guaranteeing self-sufficiency of GMO-free white corn for human consumption.
  • Biden-Harris Administration: USDA and USTR reported securing more than $26.7 billion in agricultural market access globally.
  • US–Kenya: Agriculture was discussed during the latest negotiating round of the U.S.- Kenya Strategic Trade and Investment Partnership (STIP), held from Sept. 16–30 in Washington D.C.
  • World Trade Organization: Deputy Director-General Angela Ellard discussed WTO negotiation priorities, the important role of the WTO committees, and focus areas for reform during a Washington International Trade Association (WITA) event.
  • Longshoremen Strike: The International Longshoremen’s Association and U.S. Maritime Alliance jointly announced a tentative agreement on wages that ended an East and Gulf Coast port strike after three days.
  • US-UK: USDA approved beet imports from the UK.

“Food sovereignty will continue to be the guiding axis of our policy for the countryside. We will guarantee self-sufficiency of white corn, free of GMOs, for human consumption. We will secure the supply of corn for human consumption. The goal, additionally, is to win a true agreement between producers of corn and tortillas, we want to arrive at a fair price of tortillas in our country.”

———Mexican President Claudia Sheinbaum during her Oct. 1 inauguration ceremony

European Union

Enforcement of Deforestation Regulation Delayed

  • The European Commission, in response to calls by global partners, proposed additional preparation time for concerned parties to implement a law that would ban products that degrade forests.
  • If approved by the European Parliament and the Council, the new EU law will apply on Dec. 30, 2025, for large companies and June 30, 2026, for small companies.
  • The European Commission announced the decision alongside additional guidance documents and a stronger international cooperation framework to support global stakeholders for the implementation of the regulations.
    • Key areas of the guidance documents covered include details of the functionalities of the information system updates on penalties, updates on penalties, and clarifications on critical definitions.
  • The Commission is publishing principles of its benchmarking exercise which classifies countries based on their risk level.

Mexico

Sheinbaum Inaugurated

From Claudia Sheinbaum on X
  • Mexican President Claudia Sheinbaum officially began her term on Oct. 1 and included pledges on the country’s corn policy as part of her inauguration speech.
  • Sheinbaum outlined 100 commitments for the next six years, including one related to genetically modified corn.  The 62nd priority states:
    • “Food sovereignty will continue to be the guiding axis of our policy for the countryside. We will guarantee self-sufficiency of white corn, free of GMOs, for human consumption. We will secure the supply of corn for human consumption. The goal, additionally, is to win a true agreement between producers of corn and tortillas, we want to arrive at a fair price of tortillas in our country.”
  • U.S. President Joe Biden spoke with Sheinbaum in an Oct. 4 phone call. According to a White House readout of the call, the “two leaders reaffirmed the deep ties between the United States and Mexico and emphasized their commitment to continuing the strong and collaborative partnership.”
  • On her social media, Sheinbaum said the call “discussed bilateral cooperation in economic, cultural and commercial matters. I appreciate (Biden’s) congratulations on taking office as the first female President of Mexico.”

Biden-Harris Administration

Administration Reports Over $26.7b in Market Access Wins

  • The Office of the United States Trade Representative (USTR) and the United States Department of Agriculture (USDA) announced that the Biden-Harris Administration has secured over $26.7 billion in agricultural market access globally.
  • The wins for U.S. agricultural producers included:
    • Lower tariffs in India for 10 agricultural commodities.
    • Market access in Mexico for fresh potatoes beyond a 26km zone along the U.S.-Mexico border.
    • Allowance for the United States to compete for up to 100 percent of Japan’s on-road ethanol market.
    • A revised beef safeguard mechanism under the U.S.–Japan trade agreement.
  • U.S. food and agriculture groups have pressed the administration to pursue “trade policies to bolster our global competitive standing around the world.”

US–Kenya

US–Kenya Strategic Trade and Investment Partnership (STIP)

  • The United States and Kenya held a round of negotiations under the US–Kenya STIP from Sept. 16–30 in Washington D.C.
  • Among other issues, the countries discussed administrative matters, agriculture, customs, trade facilitation, enforcement environment, regulatory practices, inclusivity, and workers’ rights.
  • In recent years, U.S. exports of agricultural and related products have ranged from about $30-70 million annually, largely depending on exports of vegetable oils (excluding soy) and wheat. 
  • Meanwhile, annual U.S. imports of agricultural and related products from Kenya range from $127-192 million, over half of which is coffee.

World Trade Organization

Ellard Spotlights WTO Role During Washington Visit

  • WTO Deputy Director-General Angela Ellard outlined the Organization’s current negotiation priority — implementation of the Agreement on Fisheries Subsidies — during a Washington International Trade Association event.
  • Ellard emphasized the role of WTO committees in monitoring the implementation of WTO agreements, with specific emphasis on the Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) committees. Ellard mentioned the ePing Platform, which provides easy access to notifications and concerns raised in the SPS and TBT committees.
  • While discussing WTO reform, Ellard highlighted three focus areas: reforming substantive rules through negotiations, improving the deliberative function related to how business is conducted within bodies, and enhancing the Secretariat’s support for WTO members.

Transportation

Dockworkers Reach Tentative Agreement

  • The International Longshoremen’s Association and U.S. Maritime Alliance announced a tentative agreement on wages that ended last week’s port labor strike after three days.
  • The Master Contract is now extended until January 15, 2025, and the two parties will continue to negotiate outstanding issues like the use of automation.
  • President Biden applauded the agreement, stating that it “represents critical progress towards a strong contract,” arguing that the dockworkers acted “patriotically to reopen our ports” amidst the recovery efforts after Hurricane Helene.

US – UK

US Opens Market to UK Beets

  • USDA’s Animal and Plant Health Inspection Service (APHIS) recently determined introducing U.K. beets into the U.S. market will not bring a significant risk of plant pests or noxious weeds.
  • Imports of U.K. beets were authorized beginning Sept. 27, 2024.
  • The imports are not expected to have a significant effect on U.S. beet producers.