TRADE UPDATE

Food & Agriculture
Feb. 14, 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

  • Tariffs:
    • On Feb. 13, President Donald Trump announced the “Fair and Reciprocal Plan,” which aims to reduce the trade deficit and address other unfair and unbalanced aspects of trade with foreign trading partners.
    • The move followed an announcement that came two days earlier, when Trump announced 25% tariffs on imported steel and aluminum, so far without exemptions.
  • Trump Administration: Brooke Rollins was sworn in as the 33rd U.S. Secretary of Agriculture and Jamieson Greer’s USTR nomination was advanced by the Senate Finance Committee.
  • China:
    • A Congressional Research Service report revisits the U.S.-China Phase One trade deal, highlighting where China fell short of its purchase commitments and discussing broader policy implications.
    • The European Commission announced final anti-dumping duties ranging from 10%-35.6% on Chinese biodiesel imports.
  • WTO:
    • Many high-level WTO representatives emphasized the need for agricultural reform and progress on agriculture negotiations, including Paraguayan President Santiago Peña Palacios, the WTO Director General, and the outgoing chair responsible for agriculture negotiations.
    • Despite rising signs of protectionism, a new WTO working paper shows agricultural trade has remained remarkably resilient, though the sector is more reliant on preferential trade agreements than other goods.
  • EU-Mexico: On Jan. 17, negotiations concluded on a modernized EU-Mexico “Global Agreement,” which further reduces market access barriers. The EU was able to secure lower tariffs for many agricultural products, protect 568 EU Geographical Indications from copyright infringement, and reaffirm the “precautionary principle.”

“I think when the history books are written on this, the WTO will come to be seen as a utopian project in much the way as the League of Nations was — as a step too far, a tread on national sovereignty. Something at the end of the day wasn’t politically sustainable.”

—Council on Foreign Relations Senior Fellow Edward Alden during the 2025 Washington International Trade Conference

Trump Tariffs

  • On Feb. 13, President Donald Trump announced the “Fair and Reciprocal Plan,” which aims to reduce the trade deficit and address other unfair and unbalanced aspects of trade with foreign trading partners.
    • The memorandum states the administration will work “to counter non-reciprocal trading arrangements with trading partners by determining the equivalent of a reciprocal tariff with respect to each foreign trading partner.”
    • After the submission of specified agency reports under the America First Trade Policy memorandum, the Secretary of Commerce, U.S. Trade Representative, and other relevant officials will investigate harm from non-reciprocal trade agreements and report proposed remedies for reciprocal trade relations.
  • Trump also recently announced 25% tariffs on imported steel and aluminum, so far without exemptions.
  • There have not been any significant public developments on the 25% tariffs on Canada and Mexico, which were delayed until March 4. While Mexican and Canadian duties were delayed, 10% tariffs on China and China’s retaliatory tariffs are in place. China is challenging the U.S. tariffs at the WTO, requesting WTO consultations on Feb. 5.

Trump Administration

NOMINATIONS

  • Brooke Rollins was sworn in on Feb. 13 as the 33rd U.S. Secretary of Agriculture following a bipartisan 72-28 Senate confirmation vote earlier that day.
  • The Senate Finance Committee advanced the nomination of Jamieson Greer to be United States Trade Representative by a vote of 15-12.
    • Sen. Sheldon Whitehouse (D-RI) was the only Democrat on the committee who voted in favor of Greer.
Corn Refiners Association President and CEO John Bode greets new Agriculture Secretary Brooke Rollins on Friday, Feb. 14 at the Department of Agriculture’s Washington headquarters.
Corn Refiners Association President and CEO John Bode greets new Agriculture Secretary Brooke Rollins on Friday, Feb. 14 at the Department of Agriculture’s Washington headquarters.

China

CRS REPORT REVIEWS US-CHINA PHASE-ONE DEAL

  • A Congressional Research Service report revisits the 2020 U.S.-China Phase One Deal, examining broader policy implications as well as potential congressional actions.
  • According to the report, China fell short of its Phase One purchase commitment target of U.S. goods by 40%.
    • The two-year cumulative target of Phase One commitments was $352.6 billion, but U.S. exports to China in 2020 and 2021 were $209.9 billion.
  • For agriculture, the two-year cumulative target was $73.9 billion, and U.S. exports to China totaled $61.0 billion, falling short by 17%.
  • An assessment of China’s compliance with the Phase One Trade Deal is expected in April under the America First Trade Policy memo Trump signed on the day of his inauguration.

EU ANNOUNCES ANTIDUMPING DUTIES ON BIODIESEL FROM CHINA

  • The European Commission announced final anti-dumping duties on Chinese biodiesel imports, with duties ranging from 10%-35.6%.
  • Provisional duties have been in place since Aug. 2024.

WTO Activities

  • At a WTO Presidential Lecture, Paraguayan President Santiago Peña Palacios of Paraguay emphasized the “pressing” need for agricultural reform and identified it as an important unresolved issue.
    • At an informal ministerial gathering on Jan. 24, trade ministers stressed the need to initiate “substantive” negotiations on agriculture.
  • At an informal WTO Committee on Agriculture Special Session on Feb. 6, the Director-General told participants that agriculture should be the “center of attention” at the 14th Ministerial Conference (MC14), urging members to achieve a breakthrough in the negotiations.
    • MC14 is scheduled for March 2026 in Cameroon. Ministerial conferences are normally held every two years and are the WTO’s highest decision-making body.
  • Despite rising signs of protectionism, a new WTO working paper shows agricultural trade has remained remarkably resilient, though the sector is more reliant on preferential trade agreements than other industries.
    • Only 48% of fruit and vegetables are traded under WTO terms. The share rises to 68% for cereals and food preparations, to 76% for oilseeds, fats, and oils, and to 95% for cotton, silk, and wool.
    • All told, 80% of merchandise trade takes place on a most favored nation basis.
https://www.wto.org/english/blogs_e/data_blog_e/blog_dta_21jan25_e.htm

EU-Mexico

  • On Jan. 17, negotiations concluded on a modernized EU-Mexico “Global Agreement,” which further reduces market access barriers.
  • The deal aims to boost economic productivity and strengthen ties between both parties through reduced trade barriers as well as the strengthened access and processing of raw materials.
  • Among other food and agriculture concessions, the EU was able to secure lower tariffs for many agricultural products, protect 568 EU Geographical Indications from copyright infringement, and reaffirm the hazard-based “precautionary principle.”
  • The EU highlights from the agreement are Mexico’s removal of high tariffs on EU agri-food exports, streamlined processes for EU companies bidding on government contracts in Mexico, strengthened climate and labor protections, and a secured supply of materials necessary for eco-friendly and digital transitions.