TRADE UPDATE

Food & Agriculture
Oct. 22, 2024

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

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HIGHLIGHTS

  • World Food Forum: The Food and Agriculture Organization of the United Nations hosted the 2024 World Food Forum and focused on youth engagement, investment, innovation, indigenous peoples’ food systems, global family farming, the Rome water dialogue, and cultural exhibitions.
  • Tariffs: A World Agricultural Economic and Environmental Services study commissioned by the American Soybean Association and the National Corn Growers Association shows a new trade war with China would result in a sudden and steep decrease in U.S. corn and soy exports.
  • Trade Promotion: USDA is accepting applications for its first-ever trade mission to Bangkok, Thailand, which will take place on Feb. 3-6, 2025. USDA also intends to lead missions to Côte d’Ivoire, the Dominican Republic, Guatemala, Hong Kong, Mexico, and Peru in 2025.

“The WTO provides a negotiating forum where members could lower trade barriers and reduce trade-distorting support, helping agricultural markets function better and freeing up billions of dollars worth of resources that could be put to better use. But the fact is that at a time when a comprehensive update to the global agricultural trade rulebook is long overdue, we have not been so successful in moving forward agricultural trade negotiations at the WTO. But we will never give up trying. Agriculture and a well-functioning agricultural trading system is too important to the world.”

———World Trade Organization Director-General Ngozi Okonjo-Iweala addressing the World Food Forum

FOOD AND AGRICULTURE ORGANIZATION (FAO)

WORLD FOOD FORUM

  • The Food and Agriculture Organization of the United Nations (FAO) hosted the World Food Forum from Oct. 14-18 in Rome.
  • FAO highlighted three special sessions as part of the event:
  • FAO highlighted other key events emphasizing youth engagement, investment, water scarcity, indigenous food systems, and family farming.
  • WTO Director-General (DG) Ngozi Okonjo-Iweala addressed the event on Oct. 14. In her remarks, she underscored the crucial role of trade and the WTO in addressing farming and food challenges.
    • Okonjo-Iweala emphasized the role of climate change in exacerbating food security challenges, especially on water and land management issues.
    • She also highlighted an incoming report from the Global Commission on the economics of water that emphasized the role trade can play in mitigating water-related pressures by allowing countries with hydrological resources to specialize in producing water-intensive goods.
*Source: UN FAO

World Agricultural Economic and Environmental Services

COST OF TRADE WAR TO AGRICULTURAL EXPORTS

  • A World Agricultural Economic and Environmental Services study commissioned by the American Soybean Association and the National Corn Growers Association shows a new trade war with China would result in a sudden and steep decrease in U.S. corn and soy exports.
  • The study concludes Chinese retaliatory tariffs on U.S. corn and soybeans would forfeit American market share to Brazil and Argentina, which would be challenging to reclaim.
  • The report suggests repeated tariff utilization in trade policy ultimately accelerates the conversion of cropland in South America to corn and soybean plots, which has negative long-term consequences for U.S. soybean and corn growers.
  • According to figures in the report, another potential U.S.-China trade war – during which China would respond to U.S. tariffs with retaliatory tariffs – could lead U.S. soybean farmers to lose between $3.6-5.9 billion in annual production value; American corn farmers could lose an average of $0.9-1.4 billion in annual production value.
  • The report estimates that total economic output could be expected to drop between $4.9-7.9 billion due to an expanded trade war with China.
*Source: National Corn Growers Association

Trade Promotion

USDA TRADE MISSION TO THAILAND

  • USDA will host its first-ever trade mission to Bangkok, Thailand on Feb. 3-6, 2025.
  • During the trade mission, U.S. agribusiness representatives will meet with potential importers from Thailand and Burma, learn about local and regional market conditions, and attend site visits and in-depth market briefings by USDA’s Foreign Agricultural Service staff and other regional trade experts.
  • USDA also intends to lead missions to Côte d’Ivoire, the Dominican Republic, Guatemala, Hong Kong, Mexico, and Peru in 2025.
  • In 2023, the United States exported $1.3 billion in agricultural and related products to Thailand, including $236 million of U.S. wheat and $154 million of soybeans.
  • Export opportunities in Thailand highlighted by USDA include dairy products, food preparations, seafood, tree nuts, fresh fruits, chocolate and cocoa, beef, wine, spirits, hops, beer, and food ingredients.
  • USDA is giving interested parties, including current and potential exporters, interested in attending the mission until Oct. 29 to apply.