TRADE UPDATE

Food & Agriculture
June 25, 2024

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

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HIGHLIGHTS

  • Mexico: On June 20, President-elect Claudia Sheinbaum announced agronomist Julio Berdegué will serve as her Secretary of Agriculture and Rural Development. In an interview following the announcement, Berdegué noted his intent to maintain the cultivation ban on genetically modified (GM) crops and stated he does not agree with the import of GM corn for human consumption.
  • Americas: USTR seeks input on the Americas Partnership for Economic Prosperity (APEP) trade track by July 22.
  • Beef: Sen. Mike Rounds (R-SD) is advocating for the inclusion of a mandatory country of origin label (MCOOL) for beef in the farm bill. In 2015, Congress repealed MCOOL for beef and beef products after Canada and Mexico successfully challenged a similar MCOOL policy at the World Trade Organization (WTO).
  • Trade Promotion: On June 17, U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor traveled to Vancouver, Canada, to launch USDA’s first trade mission dedicated to developing export markets for Tribal and Native Hawaiian businesses and products.
  • Food and Agriculture Organization of the United Nations (FAO): From June 17-21, the Global Bioenergy Partnership (GBEP) held its 11th Bioenergy Week in Italy. During the event, the FAO launched a new FAOSTAT domain to track the production and final consumption of bioenergy by type of biofuel.

“U.S. farmers and ranchers work hard to provide the safest and best tasting beef in the world. Producers of foreign beef should not receive an unfair advantage when engaging in our domestic markets, especially as our competitors do not always meet American animal health and consumer safety standards.”

—–Sen. Mike Rounds (R-SD) advocating for the inclusion of MCOOL in the farm bill

Mexico

Julio Berdegué Announced as Mexico’s Next Secretary of Agriculture

  • On June 20, President-elect Claudia Sheinbaum announced agronomist Julio Berdegué will serve as her Secretary of Agriculture and Rural Development.
  • In an interview following the announcement, Berdegué noted his intent to maintain the cultivation ban on genetically modified (GM) crops and stated he does not agree with the import of GM corn for human consumption. 
  • Berdegué also said he agrees with the decision to delay the presidential decree banning glyphosate until there is a “real alternative.”
  • Berdegué has served as the FAO Director-General and Regional Representative for Latin America and the Caribbean since 2017. Before his time at FAO, Berdegué held positions in several national and regional governments throughout Latin America.
  • Among other appointments, Sheinbaum announced Marcelo Ebrand, former Foreign Affairs Secretary and recent opponent for their party’s presidential nomination, as her Economy Secretary and Juan Ramón de la Fuente, Mexico’s former ambassador to the United Nations, as Secretary of Foreign Affairs.
Mexican President-elect Claudia Sheinbaum (center, waving) with her recently announced selections for cabinet positions, including Agriculture and Rural Development pick Julio Berdegué (right). – From @Claudiashein on Twitter/X 

Americas

Americas Partnership for Economic Prosperity

  • On June 20, the Office of the U.S. Trade Representative released a request for public comments on the trade track of the Americas Partnership for Economic Prosperity (APEP).
  • Interested parties are invited to submit comments on trade and investment matters related to customs and trade facilitation; value and supply chain resilience; sustainability, environment, climate, and conservation; and transparency and good regulatory practices, among others.
  • Comments are to be submitted for consideration no later than July 22, 2024.
  • APEP includes Mexico, Ecuador, Panama, Peru, Canada, Barbados, Chile, Colombia, Cost Rica, Dominican Republic, Uruguay, and the United States.
  • APEP partnership was created to “deepen economic collaboration and integration in the Western Hemisphere.”
  • APEP originated at the 2022 Summit of the Americas. Since then, the participating governments have agreed to prioritize sustainable infrastructure, regional competitiveness, environmental protection, community health, and cooperative governance.

Beef

Mandatory Country of Origin Labeling in Farm Bill

  • Sen. Mike Rounds (R-SD) is advocating for the inclusion of a mandatory country of origin label (MCOOL) for beef in the farm bill, claiming that current weaknesses in USDA regulations allow foreign meat products to have “Product of USA” labels.
  • Rounds is hoping to collect signatures in support of a letter he will send to the Senate Agriculture Committee leaders.
  • In his statement to the Senate Committee on Agriculture, Nutrition, and Forestry Chairwoman Debbie Stabenow (D-MI) and Ranking Member John Boozman (R-AR), Rounds argued, “U.S. farmers and ranchers work hard to provide the safest and best tasting beef in the world. Producers of foreign beef should not receive an unfair advantage when engaging in our domestic markets, especially as our competitors do not always meet American animal health and consumer safety standards.”
  • In 2015, Congress repealed MCOOL for beef and beef products after Canada and Mexico successfully challenged a similar MCOOL policy at the World Trade Organization (WTO). WTO arbiters authorized more than $1B in retaliation by Canada and Mexico.
  • Many agribusinesses and farm groups, including CRA, formed the COOL Reform Coalition to support COOL repeal in 2015. The coalition endorsed legislation authored by former House Agriculture Committee Chairman Mike Conaway (R-TX) and Rep. Jim Costa (D-CA), saying the bill – which was ultimately signed into law – would “effectively respond” to the WTO ruling.
  • In March, USDA formalized a voluntary labeling rule that limits the use of “Product of USA” labels for meat, poultry, and egg products that are “born, raised, slaughtered, and packaged in the United States.”

Trade Promotion

USDA Trade Mission Dedicated to Indigenous Products

  • On June 17, U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor traveled to Vancouver, Canada, to launch USDA’s first trade mission dedicated to developing export markets for Tribal and Native Hawaiian businesses and products.
  • In USDA’s news release, Taylor stated, “This historic trade mission showcasing products from Tribal and Native Hawaiian producers is long overdue, and Canada couldn’t be a better host country.”
  • Both the United States and Canada’s Indigenous communities share not only a profound historical connection, but similar agriculture and trade practices as well, making this a logical partnership.
  • During her visit, Taylor noted she was “proud to represent USDA at this turning point. We have a unique opportunity to be the change we want to see in our industry, and build on the incredible legacy of stewardship, innovation and productivity.”
  • Taylor is “leading a delegation comprised of officials from 14 Tribal agribusinesses, agricultural leaders from 13 Native Nations, Minnesota Lieutenant Governor Peggy Flanagan, Intertribal Agriculture Council Board President Harlan Beaulieu and officials from the Maine, North Carolina and Oregon Departments of Agriculture.”
-From @USDAForeignAg on Twitter/X

Food and Agriculture Organization of the United Nations

Bioenergy Week

  • From June 17-21, the Global Bioenergy Partnership (GBEP) held its 11th Bioenergy Week in Italy, with discussion on initiatives to advance sustainable bioenergy as a solution to achieving the UN Sustainable Development Goals and implementing the Paris Climate Agreement.   
  • During the event, the FAO launched a new FAOSTAT domain to track the production and final consumption of bioenergy by type of biofuel.
  • FAO organized the event in the context of the GBEP Programme of Work, in collaboration with the Italian Ministry of Environment and Energy Security and U.S. Grains Council (USGC).
  • “The GBEP Bioenergy Week brings together a large network of bioenergy stakeholders, including international experts, decision makers and private sector representatives to discuss current trends, future opportunities and challenges in bioenergy,” FAO said.
  • Each day of the conference focused on a unique theme, with the overall objective of “advancing climate goals, food security, better land use, and sustainable energy for all.”