Ag Exports, Russia Poultry Agreement, FTAs Discussed at Senate Hearing
On August 4, 2010 the Senate Committee on Agriculture, Nutrition & Forestry held a hearing entitled “Promoting Agricultural Exports: Reviewing U.S. Agricultural Trade Policy and the Farm Bill’s Trade Title.”
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Among others, Committee Chairman Lincoln (D), Ranking Member Chambliss (R), and U.S. Trade Representative Kirk testified at the hearing. The following are highlights of their testimony:
Sanitary, Phytosanitary, and Other Trade Technical Barriers Growing
Senator Chambliss noted that while gaining access to new markets is essential, maintaining current market access is also important. The growing prevalence of sanitary, phytosanitary, and other technical barriers to trade threaten to erode key export markets.
USTR Kirk noted that among the U.S.’ most pressing concerns on agricultural non-tariff measures are Chinese and Indian certification requirements for U.S. dairy exports, and trade barriers on beef, pork, and poultry products in China, Japan, Taiwan, and elsewhere. The U.S. is also moving forward with a WTO case against Europe’s ban on U.S. poultry.
USTR Says Problems Have Arisen in U.S.-Russia Poultry Agreement
Kirk stated that new problems have arisen with the June agreement that was to lift the ban on U.S. poultry imports into Russia because Russia has made new inspection demands. Russia is now requiring that Russian inspectors be on the ground at U.S. plants for poultry exports to take place.
Kirk stated that the USTR Chief Agricultural Negotiator and the Agriculture Secretary are working with Russia to get it to adhere to the agreement as signed.
(See ITT’s Online Archives or 06/25/10 news, 10062536, for BP summary announcing the agreement.)
Pursuing More FTAs Will Also Help Boost U.S. Agricultural Exports
Senator Lincoln stated that the U.S. can boost agricultural exports by pursuing more free trade agreements. The first step in this road would be the U.S. expeditiously considering and passing the current three pending FTAs (with South Korea, Panama, and Colombia).
Senator Chambliss stated that the President should submit all three pending FTAs to Congress and press for their immediate approval. He noted that other agricultural exporters have been aggressively negotiating FTAs.
USTR Kirk noted that the Administration is working to resolve issues in the pending FTAs and wants to submit them to Congress for approval as soon as possible. He added that the Administration has not started discussions on any new bilateral trade agreements, but is a member of the Trans-Pacific Partnership (TPP) Agreement that is being negotiated.
Senator Says It Would be Hard to Hold Hearing on U.S.-Korea FTA without Beef Resolution
Senate Finance Committee Chairman Baucus asked USTR Kirk to commit that any U.S.-Korea FTA brought before Congress would include a promise by Korea that it will accept all beef, all ages and all cuts. Baucus added that he does not know why he should hold a hearing on the U.S.-Korea FTA if it does not include all ages and all cuts of beef.
USTR Expects to Ask Congress for Trade Promotion Authority in “Near Future”
USTR Kirk added that the Administration plans to go to Congress in the “near future” and initiate discussions for getting trade promotion authority (TPA). The focus thus far has been on trade enforcement and the balance of trade, but the Administration believes that TPA will be necessary for getting the TPP passed, etc.
Recommendation to Relax Trade Restrictions with Cuba
Senator Lincoln stated that she believes that U.S. agriculture can lead the way for the country to attain President Obama’s goal of doubling exports in the next five years. She noted that one way for the U.S. to grow its agricultural exports is to relax the trade restrictions on Cuba. Even with the current restrictions in place, U.S. agricultural exports to Cuba have averaged about $470 million over the last five years. A recent study found that relaxing trade and travel restrictions on Cuba could lead to the doubling of that amount annually.
(On June 30, 2010, the House Agriculture Committee approved legislation to expand U.S. agriculture trade and increase jobs, approving legislation (H.R. 4645) to expand the export of U.S. agriculture products to Cuba. See ITT’s Online Archives or 07/01/10 news, 10070111, for BP summary.
On March 15, 2010, S. 3112 was introduced, which would remove obstacles to legal sales of U.S. agricultural commodities to Cuba and to end certain travel restrictions to Cuba. See ITT’s Online Archives or 03/16/10 news, 10031670, for BP summary.)