TRADE UPDATE

Food & Agriculture
April 29, 2025

By Kristy Goodfellow, Vice President of Trade and Industry Affairs, Sophia Vaccaro, CRA Trade Intern, and Charlotte McCourt, CRA Communications Intern

HIGHLIGHTS

• Tariffs and Bilateral Negotiations: The Trump Administration has reported on numerous bilateral meetings, negotiations, and agreements intended to address the U.S. reciprocal tariffs.
  • U.S. Trade Representative Jamieson Greer met with Korea’s Minister of Trade. The leaders instructed their technical teams to engage this week.
  • Similar instructions also emerged from a virtual meeting Greer conducted with Vietnam’s Minister of Industry and Trade, with technical engagement called for in the “coming days.”
  • Negotiations for a bilateral trade agreement with India continue to progress, with the Terms of Reference being finalized by Vice President Vance and Indian Prime Minister Narendra Modi.
• US-Mexico: Agriculture Secretary Brooke Rollins sent a letter to Mexico asking for action related to the New World Screwworm, threatening to restrict U.S. imports of certain animals from Mexico if the issues are not resolved by April 30.
• US-China: The Washington International Trade Association held a webinar discussing the possibility of a Phase Two deal between the United States and China, highlighting the increase in tensions and distrust, but remaining optimistic.
• International Organizations: Tariffs were reported to be the primary topic for discussion during the International Monetary Fund and the World Bank Group annual spring meetings in Washington, D.C., and were featured prominently in the April 2025 World Economic Outlook.

“The bottom line with China is this — they need us more than we need them. They need our money. They need our markets. They need our consumers and all of the above.”

—Agriculture Secretary Brooke Rollins in an April 27 interview with CNN

Tariffs and Bilateral Negotiations

TARIFFS

• The Administration has reported on numerous bilateral meetings, negotiations, and agreements intended to address the U.S. reciprocal tariffs.
• Negotiations with China do not seem to be underway, although there has been mixed messaging from the Trump Administration.

KOREA

• U.S. Trade Representative Jamieson Greer met April 24 with Korean Minister of Trade, Industry and Energy Ahn Dukgeun. After the meeting, Greer noted the two leaders had “instructed their teams to engage in technical discussions next week,”  according to an April 25 USTR press release.

VIETNAM

• On April 23, Greer had a virtual meeting with the Vietnamese Minister of Industry and Trade (MOIT) Nguyen Hong Dien to discuss the U.S.-Vietnam bilateral trade relationship.
• Greer discussed the next steps between USTR and MOIT, and both sides agreed on the importance of making swift progress towards reciprocal and balanced trade between the two countries.
• USTR and MOIT instructed their teams to engage in technical discussions in the coming days to discuss efforts to expand market access and address unfair trade practices.

INDIA

• Greer welcomed comments from Vice President J.D. Vance and Indian Prime Minister Narendra Modi reaffirming the importance of the India-U.S. COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) initiative.
• Greer also highlighted the progress in the negotiations for a Bilateral Trade Agreement (BTA) launched by President Donald Trump and Modi in Washington on Feb. 13, saying that the “ongoing talks will help achieve balance and reciprocity by opening new markets for American goods.”
• The Terms of Reference for the multi-sector bilateral trade agreement were finalized on April 22, and goals for the United States include increasing market access, reducing tariff and non-tariff barriers, and negotiating a robust set of additional commitments to ensure long-term benefits.

US-Mexico

SCREWWORM

• Agriculture Secretary Brooke Rollins sent a letter to the Mexican Secretary of Agriculture, Julio Berdegué, regarding the New World Screwworm fly, a parasitic fly that feeds off warm-blooded animals.
• The letter accuses Mexico of restricting the operations of aircraft that release disease suppressants.
• Additionally, the letter accuses Mexico of adding substantial import duties on critical aviation parts, dispersal equipment, and sterile fly shipments.   
• Rollins requests in the letter government coordination, import clearances, duty waivers, and a high-level point of contact.
• Rollins threatened to restrict Mexico’s live animal imports if the issue is not resolved by April 30.

US-China

WITA EVENT ON US-CHINA RELATIONS

• The Washington International Trade Association, in partnership with the Asia Society Policy Institute, held a webinar on April 22 focused on the possibility of “Phase Two” trade engagement with China.
• The discussion focused on the possibility of a “Phase Two” deal between the United States and China, and the conversation was shaped by leaders with expertise in trade policy and U.S.-China relations.
• Speakers noted that in recent years, the two countries have taken a much more confrontational approach toward each other, garnering a higher level of distrust between the countries. This increases the difficulty of getting a negotiation done.
• Panelists were somewhat optimistic about potential negotiations between the two countries, but they highlighted that China would need to address the fentanyl issue.

International Organizations

IMF AND WBG 2025 SPRING MEETINGS AND WORLD ECONOMIC OUTLOOK

• The International Monetary Fund (IMF) and the World Bank Group (WBG) held their annual spring meetings from April 21-26 in Washington, D.C. The meetings are a unique forum for discussion on economic policymaking.
• The meetings bring together central bankers, ministers of finance and development, private sector executives, civil society representatives, and academics to discuss the state of the global economy and issues of international concern, such as the growth outlook, financial stability, and poverty reduction.
• Tariffs were reported to be the primary topic for discussion during the meetings and were featured prominently in the April 2025 World Economic Outlook.
• The report emphasizes the negative effect of policy uncertainty on global economic growth and calls on countries to “work constructively to promote a stable and predictable trade environment, facilitate debt restructuring, and address shared challenges.”