TRADE UPDATE

Food & Agriculture
Sept. 24, 2024

By Kristy Goodfellow, Vice President of Trade and Industry Affairs and Ameya Khanapurkar, Trade Intern

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HIGHLIGHTS

  • G20 Agricultural Ministerial Meeting: USDA Deputy Secretary Xochitl Torres Small represented USDA at the G20 Agricultural Ministerial Meeting. A Ministers Declaration was approved which acknowledges the benefits of international trade on food security and nutrition.
  • US – Nepal: Parties discussed agriculture during the seventh U.S.-Nepal Trade and Investment Framework Agreement (TIFA) meeting. Nepal gave the United States assurance on continued market access for U.S. pork and poultry.
  • US – Paraguay: Sustainable agriculture was discussed during the third meeting of the U.S.-Paraguay Trade and Investment Council under the TIFA.
  • US – Ecuador: On Sept. 19, the United States and Ecuador conducted the inaugural meeting of the Trade and Environment Committee of the Trade and Investment Council.
  • Trade Remedies:
    • U.S. Department of Commerce announced a preliminary affirmative determination of the countervailing duty investigation on the common herbicide 2-4, D from China and India. Preliminary duties range (depending on company) from 3-27%.
    • The Mosaic Company is withdrawing its request for a third administrative review of the countervailing duty order on imports of phosphate fertilizers to the United States from Morocco.
  • WTO: Member countries completed the sixth review of SPS Agreement, and Brazil submitted a paper on sustainable agriculture in the multilateral trading system, focused on minimizing trade restrictions, distortions, or discrimination..
  • Trade Promotion: USDA Under Secretary Alexis Taylor completed a trade mission to Vietnam emphasizing opportunities for U.S. fruit producers, genetics, and feed producers.

“We underscore the G20’s commitment to food security and nutrition. . . We highlight the role of local, regional and international trade in facilitating food distribution and supporting sustainable economic development, especially for resource-limited and import-dependent countries.”

———G20 Agriculture Ministers Declaration

G20

Agriculture Ministerial Meeting

  • USDA Deputy Secretary Xochitl Torres Small represented the United States at the G20 Agricultural Ministerial meeting in Brazil on September 17.
  • In Torres Small’s update, she highlighted work on agricultural productivity and innovation, agricultural trade, and fostering local and regional resilient food production. On this trip, she also advocated for better biofuel market access in Brazil.
  • The G20 representatives agreed on an Agriculture Ministers Declaration, which is available for download here. The report includes four priorities:
    1. Sustainability of Agriculture and Food Systems in Their Multiple Paths
    2. Enhancing International Trade’s Contribution to Food Security and Nutrition
    3. Elevating the Essential Role of Family Farmers, Smallholders, Indigenous Peoples and Local Communities in Sustainable, Resilient and Inclusive Agriculture and Food Systems
    4. Promote the Integration of Sustainable Fisheries and Aquaculture into Local and Global Value Chains
  • Priority 2 stresses the “crucial role” trade plays in “alleviating food insecurity and malnutrition, and building sustainable and resilient food systems, including by facilitating the movement of food from surplus to deficit regions.” 
  • Priority 2 also notes the need for progress on WTO reform at the WTO 14th Ministerial Conference, the importance of the Agriculture Market Information System (AMIS), the importance of reducing food waste, and the need for coordination with international financial institutions.

US – Nepal

Trade and Investment Framework Agreement (TIFA)

  • The United States and Nepal held the seventh TIFA Council meeting in Kathmandu, Nepal on Sept. 16.
  • The joint statement notes discussions focused on agriculture, labor rights, digital economy, trade in services, technical barriers to trade, intellectual property protection and enforcement, and information sharing.
  • During the meeting, Nepal confirmed it has no restriction on imports of U.S. pork and poultry and will accept Food Safety and Inspection Service (FSIS) certificate for U.S. pork and poultry in the coming months.
  • The United States exported $20.7 million in agricultural and related products to Nepal in 2023, a sharp decline from $77.2 million in 2022.

US – Paraguay

Trade and Investment Framework Agreement (TIFA)

  • The United States and Paraguay held the third meeting of the Trade and Investment Council under the TIFA on Sept. 10-11.
  • In USTR’s press release, it notes the countries reaffirmed the importance of the bilateral relationship while stressing the need to continue work in diversifying trade, economic growth, and improve market opportunities.
  • Other topics discussed include trade facilitation under the WTO Trade Facilitation Agreement, collaboration on regulatory practices, government procurement and anti-corruption, intellectual property, sustainable agriculture, and inclusivity of benefits.
  • In 2023, the United States exported $38.7 million Agricultural & Related Products to Paraguay.

US – Ecuador

Trade and Environment

  • On Sept. 19, the United States and Ecuador conducted the inaugural meeting of the Trade and Environment Committee of the Trade and Investment Council.
  • The two countries discussed the Work Plan on Trade and Environment and reviewed priorities for the incoming year: sustainable fisheries, circular economy, and sustainable critical mineral supply chains.
  • The committee members exchanged information on sustainable forest management and trade and affirmed their interest in collaborating to combat illegal logging.

Trade Remedies

Countervailing Duty Investigation of Common Herbicide

  • On Sept. 10, U.S Department of Commerce (Commerce) announced its preliminary affirmative determination in the countervailing duty (CVD) investigation on imports of 2, 4-Dichlorophenoxyacetic Acid (2, 4-D) from China and India. 
  • Preliminary subsidy rates for imports from China ranged from 3-27.68% and imports from India ranged from 3.28-5.29%.
  • The investigation was first requested by Corteva Agriscience on March 14. In its petition, Corteva asserted that it is the only domestic producer of 2,4-D.
  • The anti-dumping investigation continues concurrently and a final determination on CVDs is expected Jan. 21, 2025.

Fertilizer Imports from Morocco

  • The Mosaic Company withdrew its request for a third administrative review of the CVD order on imports of phosphate fertilizers to the United States from Morocco.
  • The CEO of OCP North America, a fertilizer company headquartered in Morocco, stated his opposition to CVDs on fertilizer imports to the United States, arguing domestic production “is far from sufficient to meet demand.”

WTO

Sanitary and Phytosanitary (SPS) Agreement Sixth Review and Agriculture Negotiations

  • WTO members continued with the sixth review of the WTO Sanitary and Phytosanitary Agreement – a process which happens every four years and is expected to conclude in March 2025.
  • The process requires members to review the operations and implementation of the SPS Agreement and has generated proposals for future discussion on regionalization, technology, transparency, among others.
  • Also, WTO members met to discuss a process forward on agriculture negotiations. Notably, Brazil submitted a paper on sustainable agriculture in the multilateral trading system, focused on minimizing trade restrictions, distortions, or discrimination.

Trade Promotion

USDA Leads Trade Mission to Vietnam

  • USDA Under Secretary Taylor and 40 agriculture businesses, trade groups, and state agriculture commissioners have completed a trade mission to Vietnam which started on Sept. 9. 
  • U.S. top exports to Vietnam include cotton, soybeans, tree nuts, distillers grains, and soybean meal. 
  • Many participants in the mission explored emerging market opportunities for products like fresh fruit (keeping in mind the culture emphasizes gifting fruit), wine (keeping in mind younger customers are developing a taste for U.S. wine), and U.S. genetics and feed (recognizing Vietnam’s expanding livestock sector).
  • USDA concurrently launched a two-week promotion of U.S. products based on their safety, quality, value, and sustainability.
Source: USDA Foreign Agriculture Service (x.com)