TRADE UPDATE

Food & Agriculture
March 5, 2024

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

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HIGHLIGHTS

“The United States is similarly disappointed that Members were not able to reach consensus at MC13 on agriculture, including with respect to export restrictions of food destined for least-developed country Members (LDCs). This commitment would have been a valuable deliverable for food-insecure LDCs. Nonetheless, the United States will continue to engage with other Members to achieve meaningful outcomes on these important issues.”

—USTR Ambassador Katherine Tai

WORLD TRADE ORGANIZATION

THIRTEENTH MINISTERIAL CONFERENCE (MC13)

  • On Mar. 2, MC13 concluded with no agreements on agriculture or fisheries subsidies.
  • On the lack of agricultural agreement, the WTO stated, “despite the intense negotiations during MC13, members were not able to find convergence. Divergences remain on public stockholding (PSH) for food security purposes and in respect of timelines, expected outcomes and the scope of the flexibility to be provided to food imports by the most vulnerable countries from export restrictions.”
  • During a debrief on MC13 hosted by Washington International Trade Association, Deputy Director General of the WTO Angela Ellard shared that agriculture negotiators were engaged in text-based negotiations, which she framed as a positive development.
  • In a statement from USTR Ambassador Katherine Tai on agriculture, she states, “The United States is similarly disappointed that Members were not able to reach consensus at MC13 on agriculture, including with respect to export restrictions of food destined for least-developed country Members (LDCs). This commitment would have been a valuable deliverable for food-insecure LDCs. Nonetheless, the United States will continue to engage with other Members to achieve meaningful outcomes on these important issues.”    
  • In a press release at the conclusion of the event, the WTO highlights adoption of:
    • A Ministerial Declaration setting out a “forward-looking, reform agenda;”
    • A Ministerial Decision to have a fully and well-functioning dispute settlement system by 2024;
    • A Ministerial Decision to improve use of the special and differential treatment provisions for developing and least developed countries, through improved application of the Sanitary and Phytosanitary Measures and the Agreement on Technical Barriers to Trade;
    • A Ministerial Decision to review the E-commerce Work Programme, including an agreement to maintain the current practice of not imposing customs duties on electronic transmission until the 14th Ministerial Conference;
    • A Ministerial Decision to extend the moratorium on non-violation and situation complaints, regarding the Agreement of Trade-related Aspects of Intellectual Property Rights (TRIPS) until MC14; and
    • Three environmental initiatives presented by certain Members on: plastic pollution, paths to concrete outcomes by MC14, and fossil fuel subsidies.
  • Ministers formally approved the WTO Memberships of Comoros and Timor-Leste.
WTO Director-General Okonjo-Iweala and MC Chair H.E. Dr Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade

Export Competitiveness

RICE

U.S.-Paraguay

OFFICIAL CONGRESSIONAL REVIEW ACT ON BEEF IMPORTS FROM PARAGUAY

  • Senators Jon Tester (D-Montana) and Mike Rounds (R-South Dakota) filed a Congressional Review Act (CRA) resolution, overturning the Biden’s administration decision in lifting the ban on beef imports from Paraguay.
  • The senators have expressed their concerns surrounding Paraguay’s history of foot and mouth disease outbreaks and its ability to meet U.S. standards for animal health. There are potential risks associated with importing beef from a country with a history of unresolved animal health issues.
  • A final rule issued by the Animal and Plant Health Inspection Service (APHIS) issued on Nov. 9, 2023, indicates USDA’s approval on beef imports from Paraguay under certain conditions. Conditions include inspections before and after the animal’s death.
  • The resolution has support from the National Cattlemen’s Beef Association (NCBA), United States Cattlemen’s Association (USCA), R-CALF USA, Livestock Marketing Association, National Farmers Union, Montana Farmers Union, Montana Stockgrowers Association, and the Montana Farm Bureau Federation.
  • According to the Senators, the bipartisan resolution aims to protect American ranchers and consumers.
  • Senators Tester and Rounds have asked the USDA to review and collect data on Paraguay before resuming beef imports.
  • Kent Bacus, Executive Director of Government Affairs for the National Cattlemen’s Beef Association (NCBA) stated: “USDA’s decision to allow Paraguayan beef imports into the U.S. creates an unnecessary risk to the health and safety of the U.S. cattle herd. U.S. cattle producers are held to the highest food safety and animal health standards in the world and any trade partner must be able to demonstrate they can meet those same standards.”

U.S.-Mexico

U.S. SUGAR EXPORTS

  • On Feb. 29, USDA Economic Research Service (ERS) published a graph and explanation of U.S. sugar exports to Mexico based on the Sugar and Sweeteners Outlook: February 2024. 
  • The graph emphasizes that that U.S. sugar exports to Mexico are returning to levels seen during 2008 – 2013.
  • The report projects that in FY2024, the United States will export 160,000 short tons, raw value (STRV), of which 88 percent will go to Mexico.
  • The report notes that production in Mexico has fallen to a 15-year low, and attributes the low to drought and reduced fertilizer use.

MEXICO HORTICULTURAL EXPORTS

  • In Aug. 2023, Economic Research Service published a report: “How Mexico’s Horticultural Export Sector Responded to the Food Safety Modernization Act” (FSMA). 
  • The ERS report concluded that FSMA, which aims to enhance food safety measures and ensure imported food meets U.S. standards, “does not appear to have had a major negative effect on Mexico’s horticultural export sector.”
  • The study documents how the Mexican horticultural export sector responded to FSMA by adjusting operations to meet new food safety requirements, including updating equipment, investing in infrastructure, and enhancing testing programs.
  • The report states: “The activities of Mexican growers in food safety—before and after FSMA—appear to be one of several factors explaining the tremendous growth in Mexican horticultural exports to the United States seen so far during the 21st century.”

TRADE REMEDIES

PEA PROTEIN FROM CHINA

  • On Feb. 29, U.S. International Trade Commission (ITC) announced the scheduling for the final phase of the anti-dumping (AD) and countervailing duties (CVD) investigation for pea protein from China.
  • The ITC will determine whether an industry in the United Staes was injured or threatened with material injury because of the imports of certain pea proteins from China.
  • The investigation was requested on Jul. 12, 2023 by PURIS Proteins in Minneapolis, MN.
  • Written submissions for interested parties are due June 18, 2024, and a hearing is scheduled for June 25, 2024. 
  • The determination date is set for Aug. 12, 2024.
  • The ITA preliminary CVDs ranged from 15.09-342.53% and ADs were 122.19%.

PASTA FROM ITALY AND TURKEY

  • On Mar. 1, the of Department of Commerce, International Trade Administration (ITA) and U.S. International Trade Commission (ITC) announced the initiation of a five-year (sunset review) on anti-dumping (AD) and countervailing duties (CVDs) for pasta from Italy and Turkey.
  • AD CVDs were first ordered in 1996, making this the fifth five-year review.