TRADE UPDATE

Food & Agriculture
Oct. 11, 2024

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

SUBSCRIBE

HIGHLIGHTS

  • WTO:
    • On Oct. 8, the WTO formally began the process of appointing the next Director General.
    • Sustainable agriculture was discussed during side events of the WTO’s Trade and Environment Week from Oct. 7-11.
    • WTO’s Trade Negotiations Committee (TNC) held a dedicated conversation about agriculture negotiations, during which members responded to proposals for moving forward.
  • USDA: USDA recently announced the first recipients of the Assisting Specialty Crop Exports (ASCE) Initiative, which was launched earlier this year to create more markets for U.S. businesses.
  • International Rice Market: India’s Department of Commerce lifted the ban on exports of non-basmati white rice while maintaining an export price floor of $490/ton.

“Specialty crop exporters face myriad import requirements in every foreign market they enter, yet they often don’t have the economies of scale to develop the required certifications or negotiate favorable terms. ASCE will help smaller exporters by directly addressing barriers and supporting industry’s efforts to obtain needed certifications … We’re excited to bring on new partners who will provide solutions and allow U.S. specialty crop producers to expand international markets for their world-class products.”

———USDA Trade and Foreign Agricultural Affairs Under Secretary Alexis Taylor

WTO

Process Underway to Select Next Director-General

  • On Oct. 8, the World Trade Organization formally began the process of appointing the next Director-General.
  • Member countries will have one month from the start of the appointment process to nominate candidates.
  • The appointment process will be concluded with a General Council Meeting scheduled for April 2025.
  • Current DG Ngozi Okonjo-Iwela has announced she plans to seek a second four-year term in the position.

Trade and Environment Week 2024

Agriculture Negotiations

  • Okonjo-Iweala announced that the Trade Negotiations Committee (TNC) demonstrated a strong commitment to making a breakthrough in farm trade talks.
  • Fifty members voiced their views on the report offered by WTO’s chair of agriculture negotiations outlining two options to advance negotiations:
    • Initiate small group discussions between members, then incorporate outcomes into broader talks at the Committee on Agriculture in a special session
    • The chair appoints a facilitator to guide inclusive discussion on various topics, provide updates, and ensure that inputs shape negotiations
  • No specific decision or outcome was reported; however, Okonjo-Iweala stated, “I sense that there’s a willingness to try to break the gridlock on agriculture and to try to move the process forward.”
WTO | 2024 News items – DG Okonjo-Iweala: We need a process now to advance agriculture negotiations

USDA

Specialty Crop Exports

  • On Oct. 9, USDA announced the first recipients of the Assisting Specialty Crop Exports (ASCE) Initiative, which was launched earlier this year to create more markets for U.S. businesses.
  • Recipients of the $25 million were Clemson University and the Foundation for Fresh Produce; Minor Use Foundation; Centre for Agriculture and Bioscience International (CABI); Inter-American Institute for Cooperation on Agriculture (IICA); Ag Aligned Global, LLC; and Bryant Christie, Inc.
  • USDA Trade and Foreign Agricultural Affairs Under Secretary Alexis Taylor noted that the ASCE will help smaller exporters by “addressing barriers and supporting industry,” adding that “specialty crop exporters face myriad import requirements in every foreign market they enter, yet they often don’t have the economies of scale to develop the required certifications or negotiate favorable terms.”

International Rice Market

Indian Government Lifts Ban on The Export of Rice

  • India’s Department of Commerce lifted the ban on exports of non-basmati white rice while maintaining an export price floor of $490/ton.
  • India’s decision is reportedly a response to Pakistan withdrawing its minimum export price the day before. Pakistani rice producers benefitted from this ban, and now face more competition for their rice exports.
  • The United States and other countries have raised concerns with India’s domestic and trade policies for rice and certain other commodities for many years, questioning consistency with WTO obligations and the impact of the protocols on global markets and food security.