TRADE UPDATE

Food & Agriculture
June 11, 2024

By Kristy Goodfellow, Vice President of Trade and Industry Affairs, Isabella Montero, Communications Intern, Molly Shields, Government Relations Intern

HIGHLIGHTS

• US-Mexico: Claudia Sheinbaum, a climate scientist by trade and a former mayor of Mexico City, has been elected president of Mexico, making her the first woman chosen to lead the country.
• Congress: On June 5, the Senate Finance Committee held a hearing regarding trade preference programs, including the Generalized System of Preferences (GSP), which expired in 2020. 
• US-Argentina: The United States and Argentina met for the fourth meeting of the bilateral Trade and Investment Council on June 5. The joint statement specifically notes additional engagement relating to Argentina’s market access request for sweet citrus and the U.S. request related to Geographical Indications.
• US-Singapore: On June 5, U.S. Chief Agricultural Negotiator Doug McKalip met with Singapore Ministry of Trade and Industry Permanent Secretary Gabriel Lim to discuss ways to strengthen the U.S.-Singapore trade relationship.
• Indo-Pacific Economic Framework (IPEF): During a June 6 IPEF Ministerial, representatives discussed the three pillars that have been finalized — the Supply Chain, Clean Economy, and Fair Economy — and kicked off the inaugural Clean Economy Investor Forum.
• Trade Advisory Committees: On June 4, USTR and USDA convened meetings of their Agricultural Policy Advisory Committee (APAC) and Agricultural Technical Advisory Committees (ATACs).

“I hope I have a reputation of being a free trader. I think, as time goes on, I’m a minority in the Congress on that point and maybe in a minority among the country as a whole … I think we’ve learned since the Second World War, free trade has lifted millions of people out of poverty. I think I’ve read where free trade and capitalism together has probably reduced, in the last 60 years, the world poverty rate … from 50% down to about 10%.”

—Sen. Chuck Grassley (R-IA) during Senate Finance Committee hearing. Full hearing: Revitalizing and Renewing GSP, AGOA and Other Trade Preference Programs

US-Mexico

Sheinbaum Wins Mexico’s Presidential Election

• On June 2, Claudia Sheinbaum, a climate scientist by trade and a former mayor of Mexico City, was elected president of Mexico, making her the first woman chosen to lead the country.
• On June 3, Consejo Nacional Agropecuario (CNA), which represents 1.8 million agriculture producers and represents and promotes agri-food activity in Mexico, voiced its support for Sheinbaum. In a statement commenting on the broader election results, CNA stated its “willingness to collaborate with all the political forces represented in Congress, seeking to build consensus and promote initiatives that benefit the agricultural sector and society as a whole.” 
• On June 4, President Joe Biden spoke with the current president of Mexico, Andrés Manuel López Obrador, to congratulate him on Sheinbaum’s historic win, as well as the success of a fair electoral process. In the call, Biden announced the approval of three new Presidential permits for international bridge projects in Texas, which would expand trade relations between the U.S. and Mexico.
• Mexico’s market is critical to the U.S. agriculture industry. USDA data highlighted the economic value of agricultural exports to Mexico in 2023 at $29 billion.

Congress

Senate Hearing on Trade Preference Programs

• On June 5, the Senate Finance Committee held a hearing regarding trade preference programs, including the Generalized System of Preferences (GSP), which expired in 2020.
• Representatives from the Corporate Council of Africa, San Mar Corporation, CATO Institute, and Global Labor Justice testified. The witnesses all advocated for the government’s reauthorization of the GSP program.
• Chairman Ron Wyden (D-OR) argued in favor of the renewal of GSP, stating, “Since GSP lapsed, companies are either paying more in tariffs and investing less into their own businesses, or they’re making the tough choice to shift supply chains back into China. If the United States is serious about moving away from Chinese manufactured goods and creating good-paying red, white, and blue jobs, renewing GSP is a good place to start.”
• Ranking Member Mike Crapo (R-ID) argued for the importance of comprehensive trade agreements and economic power, in the face of China’s increasing global trade status. “The more than three-year GSP lapse is painfully instructive and calls out for immediate renewal. Because of this lapse, Americans paid an extra $3 billion in tariffs and companies are moving production from developing countries to China,” Crapo said at the hearing. 
• During the hearing, Sen. Elizabeth Warren (D-MA) called for lawmakers to renew Trade Adjustment Assistance (TAA) legislation as part of GSP reauthorization. Warren cautioned the absence of TAA legislation in GSP would offer “tariff concessions to other countries” while costing over 100,000 American workers their jobs.

US-Argentina

Trade and Investment Council (TIC)

• The United States and Argentina met for the fourth meeting of the bilateral TIC on June 5.
• The U.S. delegation was led by Daniel Watson, Assistant USTR for the Western Hemisphere, and included representation from several U.S. government agencies, including USDA.
• The representatives discussed diversifying regional supply chains for long-term, sustainable growth, transparency, good governance, high labor standards, and environmental sustainability, as well as Argentina’s request to join the Americas Partnership for Economic Prosperity (APEC).
• On agriculture, a USTR press release notes that technical meetings will take place to “review the status of pending issues and continue regular engagement to resolve concerns.”
• Argentina’s market access request for sweet citrus was noted specifically in the joint statement, along with the U.S. request to ensure “that the grant of Geographical Indication protection does not deprive interested parties of the ability to use common names.”

US-Singapore

Bilateral Cooperation

• On June 5, U.S. Chief Agricultural Negotiator Doug McKalip met with Singapore Ministry of Trade and Industry Permanent Secretary Gabriel Lim to discuss ways to strengthen the U.S.-Singapore trade relationship.
• During the official meeting, representatives “affirmed the robust partnership between the U.S. and Singapore since the implementation of the U.S.-Singapore Free Trade Agreement (FTA) 20 years ago in 2004.”
• The conversation highlighted the importance of Singapore’s strong partnership in the Indo-Pacific Economic Framework for Prosperity (IPEF).
• No food or agricultural trade barriers in Singapore are highlighted in the 2024 National Trade Estimate.
• According to USDA Global Trade Atlas, the United States exported almost $1 billion in agricultural and related products to Singapore in 2023, including $147.5 million worth of vegetable oils (excluding soybean) and $86.0 million in dairy products.
• The Global Trade Atlas also calculates that the United States imported $3.2 billion in agricultural and related products from Singapore in 2023, including $3.04 billion in sugars, sweeteners, and beverage bases.

Indo-Pacific Economic Framework (IPEF)

Ministerial Meeting and Clean Economy Investor Forum

• On June 6, IPEF Ministerial representatives discussed the three pillars that have been finalized — the Supply Chain, Clean Economy, and Fair Economy — and kicked off the inaugural Clean Economy Investor Forum.
• The joint press statement highlights work and successes within each pillar.
• U.S. Secretary of Commerce, Gina Raimondo, traveled to Singapore for the Ministerial.
• The unfinished trade pillar is not noted in the U.S. press release or the joint statement.

Agricultural Trade Advisory Committees

Agricultural Policy Advisory Committee (APAC) and Agricultural Technical Advisory Committees (ATAC) Convened

• On June 4, USTR and USDA convened meetings of their APAC and ATACs.
• CRA President and CEO John Bode was elected to chair APAC.
• U.S. Grains Council President and CEO Ryan LeGrand was elected vice chair.