TRADE UPDATE

Food & Agriculture
July 16, 2024

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

HIGHLIGHTS

• GOP Platform 2024: The Republican National Committee released its draft platform, outlining the party’s social, economic, political, and trade-related goals. The platform supports “rebalancing trade” through baseline tariffs and revoking China’s WTO Most Favored Nation status.
• China: House Select Committee on the Chinese Communist Party Chairman John Moolenaar (R-MI) and five others on the panel sent a letter to USDA questioning the regulatory review process of genetically engineered soybean from Chinese biotech company Qi Biodesign.
• US Trade Policy: On July 11, more than 40 industry groups wrote a letter urging the Biden Administration to strengthen trade relations with U.S. partners and allies and to avoid delaying negotiations.
• Environment: Policymakers and thought leaders gathered to talk about the intersection of climate and trade during a July 10 summit hosted by the Bipartisan Policy Center.

“The era of climate-agnostic trade policies is over … To date, our trade policies have largely ignored climate change. This climate loophole in our trade policies has incentivized a shift in energy intensive manufacturing to countries with weaker standards, lower wages, and higher pollution. This global race to the bottom has undercut our workers, our industrial communities, and our climate goals alike.”

—–Special Assistant to the President for Climate Policy, Industrial Sector, & Community Investment Ben Beachy at Climate & Trade Summit hosted by the Bipartisan Policy Center

GOP Platform 2024

Republican Party Details Trade Positions

• On July 8, the Republican National Committee released its platform, outlining the party’s social, economic, political, and trade-related goals. The platform is scheduled for formal adoption during the Republican National Convention The platform, a brief 16 pages, is much shorter than the party’s 2016 platform, which spanned 67 pages.
• The fifth chapter — “Protect American Workers and Farmers from Unfair Trade” —notes the intent to secure strategic independence from China, promising “Republicans will revoke China’s Most Favored Nation status, phase out imports of essential goods, and stop China from buying American Real Estate and Industries.”
• Without “Most Favored Nations” status, the United States would no longer give China the same market access treatment, including reduced tariffs, that it is obligated to give all 164 members of the World Trade Organization.   
• Chapter Five also notes the intent to rebalance trade by implementing baseline tariffs, passing the Trump Reciprocal Trade Act, and responding to unfair trade practices.
• Other positions noted in Chapter Five include saving the American auto industry, “bringing home” critical supply chains, buying and hiring American, and becoming a manufacturing superpower.
• Embedded in Chapter Three — “Build the Greatest Economy in History”— the platform notes “securing Fair Trade Deals” as one of five pillars of the GOP America First Economic Agenda. The four other economic priorities listed are cutting taxes, removing regulations, lowering energy costs, and bolstering innovation in emerging industries.

China

Members of Congress Question USDA Approval of Chinese GE Soybean

• On July 10, House Select Committee on the Chinese Communist Party Chairman John Moolenaar (R-MI) sent a letter to USDA questioning the regulatory review process related to the recent approval of a genetically engineered soybean from Chinese biotech company Qi Biodesign. The letter emphasizes the close connection this company has with Chinese government and several state-operated funds. 
• In addition to Moolenar, the letter was also also signed by Select Committee members Neal Dunn (R-FL), Dusty Johnson (R-SD), Ashley Hinson (R-IA), Carlos Gimenez (R-FL), and Ben Cline (R-VA).
• The representatives argued, “it appears the USDA is approving [the People’s Republic of China] agriculture biotechnology without concern for U.S. supply chains or trade negotiations. USDA’s clearance of Qi Biodesign’s products undermines years of hard-nosed U.S. trade demands and could make U.S. farmers complicit in the PRC’s desire to replace them.”
• The representatives emphasized China’s history of stealing U.S. intellectual property and called for USDA to “revisit the regulatory status review of Qi Biodesign” and respond by August 1 to six specific questions in the letter related to the review process.

US Trade Policy

Cross-Sector Letter on Future U.S. Trade Policy

• On July 11, more than 40 industry groups wrote a letter to National Security Adviser Jake Sullivan and National Economic Council Director Lael Brainard, urging the Biden Administration to strengthen trade relations with the United States’ partners and allies, and to avoid delaying negotiations.
• The letter asserts while the United States has stalled trade negotiations, China has increased its negotiation efforts, putting the U.S. at a disadvantage.
• The letter makes six recommendations:
  1. Recognize the benefits of trade agreements with allies;
  2. Ensure trade policies incentivize U.S. operations and workforce;
  3. Recognize the dependency on access to information and inputs abroad;
  4. Work across the government to strengthen U.S. workforce competitiveness;
  5. Ensure trade policy supports broader U.S. economic policies, including biotechnology manufacturing and sustainable agriculture;
  6. Promoting information exchange and data flow with U.S. allies.
• Food and agriculture industry signatories included the American Seed Trade Association, American Soybean Association, Distilled Spirits Council of the United States, Farmers for Free Trade, International Dairy Foods Association, Meat Institute, North American Association of Food Equipment Manufactures, National Pork Producers Council, USA Rice Federation, and U.S. Wheat Associates.

Environment

Climate and Trade Summit

• Policymakers and thought leaders gathered to talk about the intersection of climate and trade during a July 10 summit hosted by the Bipartisan Policy Center.
• Individual remarks and panels discussed energy policies, carbon tariffs, the “PROVE IT” Act and other data issues, as well as the U.S. industry’s global positioning in the context of carbon emissions.
• Ben Beachy, Special Assistant to the President for Climate Policy, Industrial Sector, & Community Investment spoke at the event. “The era of climate-agnostic trade policies is over,” he said.   Beachy also referenced and talked about the work of the newly created White House Climate and Trade Task Force.
• While much of the discussion focused on non-agriculture manufacturing and trade, such as steel and aluminum, there were aspects of the discussion with broader implications.