TRADE UPDATE

Food & Agriculture
August 27, 2024

By Kristy Goodfellow, Vice President of Trade and Industry Affairs

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HIGHLIGHTS

  • Democratic Party Platform: The 2024 Democratic Party Platform approved last week summarizes a desired approach to trade as “promoting growth, resilient supply chains and clean energy adoption, while empowering American workers and workers everywhere.”
  • Canada: Challenges with rail service in Canada came to a head last week as Teamster members and the Canadian National (CN) Railway and the Canadian Pacific Kansas City (CPKC) failed to finalize a labor agreement. After government intervention, railway operations restarted with CP on Friday and with CPKC on Monday.
  • Trade Remedies: On Aug. 20, the Department of Commerce (DOC) announced its final affirmative determination in the countervailing duty (CVD) investigations of certain glass wine bottles from China. DOC is also conducting antidumping duty (AD) investigations into certain wine glass bottle makers in Chile, China, and Mexico.
  • Trade Missions: Interested exporters and agribusiness officials have until Wednesday to express their interest in joining an upcoming USDA trade mission to Casablanca, Morocco.

“For too long, America’s trade policies and approach to the global economy let middle-class jobs move offshore, hollowed out our supply chains, rewarded corporate CEOs instead of valuing workers, and failed to generate inclusive economic growth. In response to the previous status quo, President Biden is committed to building a fairer, more durable global economic order, for the benefit of the American people and for people everywhere.”

——– Excerpt from the 2024 Democratic Party Platform

Democratic Party Platform

Constitutional Reform

  • The Democratic Party approved its 2024 Platform during the group’s convention in Chicago last week.
  • In a section on international trade — Strengthening the U.S. and Global Economy — the party summarizes its approach to trade as “promoting growth, resilient supply chains and clean energy adoption, while empowering American workers and workers everywhere.”
  • The platform highlights certain ongoing initiatives, including the Indo-Pacific Economic Framework (IPEF), the Americas Partnership for Economic Prosperity (APEP), and the U.S.-Kenya Strategic Trade and Investment Partnership (STIP).
  • Regarding China, the platform states, “We will make no apology in pushing back on unfair trade practices that harm American workers … we seek to ‘de-risk’ and diversify the economic relationship between our countries, not decouple.”

Canada

Rail Service Disruptions Over Labor Negotiations

  • Challenges with rail service in Canada came to a head last week as Teamster members and two major railways – Canadian National (CN) and Canadian Pacific Kansas City (CPKC) – failed to finalize a labor agreement.
  • On Thursday, Canadian rail workers with Teamsters membership were initially locked out after groups failed to finalize contract negotiations.
  • After railcar traffic stopped on Thursday, Canada’s Labor Minister requested intervention by the Canada Industrial Relations Board to require arbitration and continuation of existing contracts, which the Board did on Saturday.
  • Railway operations restarted with CP on Friday and with CPKC on Monday.
  • On Aug. 19, many U.S. food and agriculture organizations signed a letter to Canadian Prime Minister Justin Trudeau requesting he “take action to ensure railroad operations continue before a lockout or strike occurs to prevent serious damage to the Canadian and U.S. economies.”

Trade Remedies

Glass Wine Bottles from China, Chile, and Mexico

  •  The Department of Commerce (DOC) has announced its final affirmative determination in the countervailing duty (CVD) investigations of certain glass wine bottles from China.
  • DOC is also conducting antidumping duty (AD) investigations into certain wine glass bottle makers in Chile, China, and Mexico.
  • Preliminary subsidy rates ranged from 21.31-212.58%.
  • Final determination by the U.S. International Trade Commission is due on Oct. 3.
  • The United States imported more than $82 million in glass wine bottles in 2022.
  • In 2022, the United States imported $7.9 billion in wine and related products and exported $1.5 billion.

Trade Missions

USDA Finalizing Morocco Mission

  • Interested exporters and agribusiness officials have until Wednesday to express their interest in joining an upcoming USDA trade mission to Casablanca, Morocco.
  • USDA Trade and Foreign Agricultural Affairs Under Secretary Alexis Taylor will lead the mission, which is scheduled for Dec. 2-5. The mission, she says in a statement “presents a pivotal opportunity for U.S. agribusinesses to tap into Morocco’s dynamic market and leverage its strategic position for wider African access.”
  • According to USDA’s Foreign Agricultural Service, Morocco is the second-largest market for American ag exports in Africa, topping $619 million last year. U.S. ag exports there have doubled since the two countries entered into the U.S.-Morocco Free Trade Agreement in 2006.
  • FAS specifically calls out several commodities with opportunities in Morocco, including beef and beef products, dairy products, feed grains, live animals and genetics, rice, seafood, seed potatoes, soybeans, and tree nuts.
  • The trip will include possible business meetings with representatives from Morocco, Senegal, Côte d’Ivoire and other West African nations.
  • Applications to participate in the mission are due Aug. 28.