TRADE UPDATE

Food & Agriculture
May 7, 2024

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

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HIGHLIGHTS

  • Global Competitiveness: On April 30, the U.S. International Trade Commission (ITC) held a hearing called “Rice: Global Competitiveness and Impacts on Trade and the U.S. Industry,” which was requested earlier this year by Ways and Means Committee Chairman Jason Smith (R-MO).
  • Supply Chains: USTR held public hearings last week on its ongoing supply chain resilience efforts. Representatives from the International Dairy Foods Association (IDFA), National Milk Producers Federation (NMPF), and U.S. Dairy Export Council (USDEC) participated.
  • Trade Remedies: The U.S. International Trade Commission (ITC) published a preliminary determination of countervailing duties (CVDs) on phosphate fertilizer from Morocco and Russia. Preliminary CVDs for the Russian company Joint Stock Company Apatit were calculated as 18.83% (currently set at 28.5%) and from Morocco’s Office Chérifien des Phosphates (OPC) calculated as 14.21% (currently set at 2.12%).
  • US-Ecuador: On April 29, the United States and Ecuador convened the fifth meeting of the Trade and Investment Council (TIC) in Washington, D.C. The TIC included a technical dialogue on agriculture, among other topics.
  • US-Turkey: On April 30, representatives from the United States and Turkey discussed bilateral issues, including agriculture, during the U.S-Turkey Trade and Investment Framework Agreement (TIFA) meeting in Ankara.
  • US-Singapore: On April 30, U.S. Trade Representative Katherine Tai and Singapore Minister of Trade and Industry Gan Kim Yong jointly chaired the U.S.-Singapore Free Trade Agreement (FTA) Joint Committee meeting.
  • OECD: From May 2-3, the 2024 Organization for Economic Co-operation and Development (OECD) Ministerial Council Meeting was held in Paris, France. Notably for food and agriculture stakeholders, the 2024 Ministerial Council Statement included a statement condemning Russia’s aggression against Ukraine, noting the diminished global food security; a commitment to reinforcing rural development and food security while strengthening national carbon sinks; and a commitment to maintaining and strengthening the World Trade Organization (WTO).
  • Trade: On May 2, the U.S. Bureau of Economic Analysis (BEA) released a report highlighting the U.S. trade deficit for March, indicating a $0.1 billion decrease compared to February.

“From the field to the factory, from the classroom to the boardroom, women are fundamental to the future of agriculture. As leaders, it is our responsibility to make sure the next generation of women farmers have equal access to economic, educational and leadership opportunities, and that we dismantle the unique barriers they face so they can continue to take on the challenges of meeting the world’s growing food, fuel and fiber needs.”

—USDA Deputy Secretary Torres Small statement in support of the United Nations General Assembly declaration of 2026 as the International Year of the Woman Farmer

Global Competitiveness

US Rice

  • On April 30, the U.S. International Trade Commission (ITC) held a hearing called “Rice: Global Competitiveness and Impacts on Trade and the U.S. Industry.”
  • During his testimony, USA Rice Federation President and CEO Peter Bachman outlined changes in the current market since 2015 based on a 2015 study, including price and export competitiveness from South America, continued non-tariff barriers from the EU, and increased competitiveness of Asian rice because of market access through the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).
  • Bachman also emphasized USA Rice Federation’s largest concern — India’s use of market price support, and its spillover effects on the global rice prices.
  • A representative from the Government of Pakistan, without mentioning India specifically, stated, “The role of the government and our trade policies towards the rice sector merit attention. Governed primarily by the private sector, the rice industry in Pakistan thrives in a vibrant and competitive marketplace, driven by market forces rather than government intervention. This noninterventionist stance develops a market-driven sector, encouraging growth and innovation free from governmental interference.”
  • On Feb. 5, 2024, Ways and Means Committee Chairman Jason Smith (R-MO) requested the USITC investigation on the global competitiveness of the U.S. rice industry. This study was also conducted in 2015.
  • The request, according to Section 332 of the Tariff Act of 1930, aims to inform policymakers about ensuring fair competition for U.S. rice producers.

Supply Chains

USTR Public Hearing on Supply Chain Resilience

  • USTR held public hearings May 2-3 in Washington, seeking input on promoting supply chain resilience through trade and investment initiatives. 
  • According to the Public Hearing Panel Schedule, the hearing featured representatives from the U.S. food and agriculture industry — Becky Rasdall represented the International Dairy Foods Association (IDFA) and Tony Rice represented the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC).
  • Many other food and agriculture companies and organizations provided written comments in response to USTR’s request for input, which were due on April 22.
  • U.S. Trade Representative Ambassador Katherine Tai previously mentioned President Joe Biden’s focus on supply chain disruptions during the pandemic and USTR’s commitment to innovative trade strategies prioritizing resilience alongside efficiency. 

Trade Remedies

Phosphate Fertilizer

  • The U.S. International Trade Commission (ITC) published a preliminary determination of countervailing duties (CVDs) on phosphate fertilizer from Morocco and Russia.
  • Preliminary CVDs for the Russian company Joint Stock Company Apatit were calculated as 18.83% (currently set at 28.5%) and from Morocco’s Office Chérifien des Phosphates (OPC) calculated as 14.21% (currently set at 2.12%). 
  • A timeline for case briefs, written comments, and rebuttal briefs is forthcoming, with a final determination expected later this year.
  • The investigation was requested by U.S.-based fertilizer producer, The Mosaic Company, and has been repeatedly condemned by the National Corn Growers Association and the American Soybean Association.

US-Ecuador

Trade and Investment Council

  • On April 29, the United States and Ecuador convened the fifth meeting of the Trade and Investment Council (TIC) in Washington D.C.
  • Delegations led by USTR Senior Advisor Cara Morrow, and Sonsoles García, Ecuador’s Minister of Production, Foreign Trade, Investment and Fisheries, highlighted the importance of bilateral and regional collaboration.
  • Technical dialogues were carried out on agriculture, intellectual property, labor, and the environment. 
  • Both countries reaffirmed their commitment to a resilient trade policy, supporting workers, environmental protection, and equitable growth.
  • According to USDA/GATS, the United States exported $805 million in agriculture and related products to Ecuador in 2023, including $453 million in soybean meal.
  • Additionally, according to USDA/GATS, the United States also imported $3.6 billion in agriculture and related products, including $1.7 billion in seafood, $538 million in nursery products and cut flowers, and $444 million in bananas.

US-Turkey

Trade and Investment Framework Agreement

  • On April 30, the United States and Turkey convened under the U.S-Turkey Trade and Investment Framework Agreement (TIFA) in Ankara.
  • Assistant U.S. Trade Representative for Europe and the Middle East, Bryant Trick, and Director General of International Agreements and EU Affairs, Husnu Dilemre, led the meeting.
  • Both countries expressed satisfaction with the restart of the TIFA Join Council Meeting and emphasized the importance of enhancing the bilateral and economic relationship.
  • Discussions between U.S. and Turkish officials included various bilateral economic matters such as agriculture, custom duties, labor, and investment policies.
  • According to USDA/GATS, the United States exported $1.8 billion in agriculture and related products to Turkey in 2023, including $674 million in cotton and $500 million in tree nuts.
  • Moreover, according to USDA/GATS, the United States imported $1.9 billion in agriculture and related products, including in $308 million in vegetable oils and $302 million in fruits and vegetable juices.

US-Singapore

Free Trade Agreement (FTA) Joint Committee Meeting

  • On April 30, U.S. Trade Representative Katherine Tai and Singapore Minister of Trade and Industry Gan Kim Yong jointly chaired the U.S.-Singapore FTA Joint Committee meeting.
  • There were discussions on ongoing efforts and committed to further collaboration on mutual interests such as environment, labor, and trade facilitation.
  • Both parties stressed the importance of cooperation, enhancing supply chain resilience through partnerships, and harmonizing labor and environmental standards.
  • The meeting commemorated the 20th anniversary of the FTA, highlighting the robust bilateral trade and investment ties between the United States and Singapore.
  • According to USDA/GATS, the United States exported $940.2 million in agriculture and related products to Singapore in 2023, including $147 million in vegetable oils (excluding soybean) and $86 million in dairy products.
  • According to USDA/GATS, the United States imported $3.2 billion in agriculture and related products, including $3 billion in sugars, sweeteners, and beverage bases.

OECD

Ministerial Council Meeting 2024

  • From May 2-3, the 2024 Organization for Economic Co-operation and Development (OECD) Ministerial Council Meeting was held in Paris, France.
  • Notably for food and agriculture stakeholders, the 2024 Ministerial Council Statement included a statement condemning Russia’s aggression against Ukraine, noting the diminished global food security; the commitment to reinforcing rural development and food security while strengthening national carbon sinks; and the commitment to maintaining and strengthening the World Trade Organization (WTO).
  • The ministerial meeting presents an opportunity to engage in substantive discussions on current pressing global issues, particularly in the realm of trade, which plays a pivotal role in strengthening sustainable and inclusive growth.
  • It focuses on three pillars, with one specifically addressing the importance of maintaining a global economic order rooted based on shared values of free and fair trade, as well as economic resilience.
  • The meeting included a Ministerial Dialogue on optimizing global climate action through data, policy advice, and increased international cooperation, as the role of the Inclusive Forum on Carbon Mitigation Approaches (IFCMA) entails.
From @VDombrovskis, from X

Trade

US Trade in Goods and Services

  • On May 2, the U.S. Bureau of Economic Analysis (BEA) released a report highlighting the U.S. trade deficit for March, down $69 million compared to February.
  • March exports totaled $257.6 billion, a decrease of $5.3 billion from February, while imports were $327 billion, down $5.4 billion from February.
  • The goods deficit increased by $829 million to $92.5 billion, while the services surplus increased by $915 million to $23.1 billion in March.
  • The deficit with China and EU increased, while it decreased with Mexico.
Source: U.S.BEA