TRADE UPDATE

Food & Agriculture
March 19, 2024

By Kristy Goodfellow, Vice President of Trade and Industry Affairs, and Natalie Diez, Trade and Economic Policy Intern

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HIGHLIGHTS

  • Congressional Letters: On Mar. 13, twenty-two Republican Senators signed a letter to Ambassador Tai and Secretary Vilsack expressing concern “with the continued erosion of critical market access for U.S. agricultural exports.” Two similar letters were sent in recent weeks by Members of the House of Representatives.
  • Indo-Pacific Economic Framework (IPEF): On Mar. 15, USTR and U.S. Department of Commerce released to the public the IPEF Fair Economy Agreement (Pillar IV), which according to the USTR press release, “includes appropriate protections to migrant workers, and (sic) takes appropriate measures to prohibit employer interference with the exercise of freedom of association and collective bargaining rights.”
  • Food Aid/Development Assistance: On Mar. 11, USDA announced the 2024 Food for Progress (FFP) priority countries: Benin, Cambodia, Madagascar, Rwanda, Sri Lanka, Tanzania, and Tunisia. On Feb. 6, USDA announced its priority countries for new McGovern-Dole International Food for Education and Child Nutrition Program cooperative agreements: Angola, Bangladesh, El Salvador, Ethiopia, Guatemala, Guinea-Bissau, Laos, Malawi, and Rwanda.
  • WTO Goods Barometer: On Mar. 8, the WTO released its newest figures for the “Goods Trade Barometer,” showing a continued weak upward momentum in trade.

“We further ask the Biden administration to take steps to analyze and consider the relationship between U.S. competitiveness and market share in foreign agricultural markets with negotiated tariffs, tariff rate quotas, and other market access provisions. A continued decline in U.S. agricultural exports is avoidable and unacceptable.”

—From a Mar. 13 letter sent to USTR Katherine Tai and USDA Secretary Vilsack from twenty-two Republican Senators

Congress

Senate Agriculture Trade Letter

  • On Mar. 13, twenty-two Republican Senators signed a letter to Ambassador Tai and Secretary Vilsack expressing concern “with the continued erosion of critical market access for U.S. agricultural exports.”
  • The letter states that the “current sharp decline in U.S. agricultural exports is directly attributable to and exacerbated by an unambitious U.S. trade strategy…”
  • The letter requests that within 14 days, USDA respond to the following questions:
    • What specific action does the Biden administration plan to take to increase U.S. agricultural exports in 2024?
    • Does the Biden administration intend to pursue new or improved free trade agreement with any countries to obtain new market access for agricultural products in 2024?
  • In recent weeks, two letters were sent by House of Representative Members, also requesting new agriculture market access. 
    • A Feb. 23 bipartisan letter from the Agriculture Trade Caucus leaders and 24 Members urged the Administration to “proactively engage and secure enforceable, high-standard agreements”. 
    • And on Feb. 26, a bipartisan letter from 22 members “reinforces the need to establish a robust trade agenda.”
  • Twenty food and agriculture trade associations signed a letter on Feb. 15, drawing Congress’s attention to the agriculture trade deficit and pushing for new market access opportunities.

Indo-Pacific Economic Framework (IPEF)

Fair Economy Agreement

  • On Mar. 15, USTR and U.S. Department of Commerce released to the public the IPEF Fair Economy Agreement (Pillar IV). 
  • The agreement was “substantially concluded” on Nov. 16, 2023.
  • IPEF partners which have agreed to this Pillar include Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam.
  • In the USTR press release, USTR highlight that the agreement “includes appropriate protections to migrant workers, and to take appropriate measures to prohibit employer interference with the exercise of freedom of association and collective bargaining rights.”
  • The first IPEF Ministerial meeting of the year on IPEF Pillars (II-IV— excluding Pillar I) was held on Mar. 14. According to a Department of Commerce press release, U.S. Secretary of Commerce Gina Raimondo welcomed the substantial conclusion to negotiations that were announced in November 2023 and welcomed the Feb. 24, 2024, entry into force of the IPEF Supply Chain Agreement.
  • USTR has not reported on progress related to the trade pillar (Pillar I) since an announcement on Nov. 16, 2023, that the pillar would not conclude by the anticipated deadline, and that the United States was “taking stock”of the progress made in the Trade Pillar.   
  • During a meeting on Mar. 15, Korea’s Trade Minister, Cheong Inkyo, and USTR Katherine Tai “exchanged views” on the ongoing work under the Trade Pillar.

Food Aid/Development Assistance

USDA Announces 2024 Food for Progress and McGovern-Dole Priority Countries

  • On Mar. 11, USDA announced the 2024 Food for Progress (FFP) priority countries: Benin, Cambodia, Madagascar, Rwanda, Sri Lanka, Tanzania, and Tunisia.
  • According to USDA, FFP “helps developing countries and emerging democracies modernize and strengthen their agricultural sectors.”
  • Through FFP, U.S. agricultural commodities donated to recipient countries are sold on the local market and the proceeds are used to support agricultural, economic, or infrastructure development programs.”
  • On Feb. 6, USDA announced its priority countries for new McGovern-Dole International Food for Education and Child Nutrition Program cooperative agreements: Angola, Bangladesh, El Salvador, Ethiopia, Guatemala, Guinea-Bissau, Laos, Malawi, and Rwanda.
  • Through the program, USDA provides U.S. agricultural commodities, funding, and technical assistance to reduce hunger, support nutrition, and improve literacy and primary education, especially for girls, around the world.
  • President Biden’s 2025 federal budget request includes for USDA a $2 billion (7.4 percent) increase from 2023 levels in discretionary budget authority for programs such as the $243 million for the McGovern-Dole International Food for Education and Child Nutrition Program.
*Food for Progress image taken from: https://fas.usda.gov/newsroom/honduran-ag-leader-touts-benefits-food-progress-partnership

WTO

WTO Goods Barometer

  • On Mar. 8, the WTO released its newest figures for the “Goods Trade Barometer,” showing a continued weak upward momentum in trade.
  • The WTO Goods Trade Barometer signals changes in world trade growth two to three months ahead of merchandise trade volume statistics.
  • According to the WTO press release, this month’s report “suggests that merchandise trade should start to show some modest gains the first part of 2024.”
  • The report was careful to note that heightened regional conflicts and geopolitical tensions could derail gains.