Industry Tells Ways and Means Panel Best Methods To Ensure Open Export Markets
A more open EU agriculture export market, ratification of the Trans-Pacific Partnership, normalizing trade relations with Cuba, and an expedited Chinese approval process for biotechnology products would all help improve U.S. agriculture exports, industry executives told House lawmakers June 14. During a House Ways and Means Trade Subcommittee hearing on expanding U.S. agriculture trade and eliminating barriers to U.S. exports, speakers expressed concern that U.S. companies are losing agricultural market share in certain countries. For example, the U.S. slid from the EU’s No. 1 agricultural exporter to No. 5, Minnesota Farm Bureau Federation President Kevin Paap said during the hearing; and U.S. agricultural market share has dropped from No. 1 to No. 4 in Cuba recently, too, as the U.S. is competing with the EU, Brazil and Argentina in that country, Rep. Charles Boustany, R-La., said.
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Subcommittee Ranking Member Charlie Rangel, D-N.Y., said agriculture export opportunities abound in Cuba, largely because of the nation’s close proximity to the U.S. and the skills of U.S. farmers, and pushed for Congress to soon develop and consider some sort of legislation to further liberalize trade with the country. House GOP lawmakers during a March hearing voiced support for easing trade restrictions with Cuba (see 1603160001). But Rep. Devin Nunes, R-Calif., during the hearing indicated that while the U.S. could benefit from exporting agricultural products to Cuban citizens, the U.S. should carefully consider who leads Havana’s regime. “The Castro regime has the blood of Americans on its hands,” Nunes said.
On the other side of the Atlantic Ocean, non-tariff barriers such as “hazard-based” EU agricultural import policies have caused U.S. tree fruit exports to the region to drop sharply, Foreman Fruit and Land Company Chairman Dale Foreman said during the hearing. Although crop size has grown, U.S. apple exports to the EU have dropped from 1.1 million boxes in 2001 to 151,000 boxes so far in 2016. While testifiers trumpeted how TPP might remove non-tariff barriers such as this, Foreman expressed skepticism that the Transatlantic Trade and Investment Partnership could bring about the “drastic change” to the EU’s “restrictive regulatory framework” needed to create a viable export market framework.
Rangel during the hearing nudged subcommittee colleagues to bring TPP up for a vote soon, despite the fact the agreement currently doesn’t have enough support to pass, he said. There is “no telling” when TPP could come before Congress for a vote, he said. After the hearing, Paap said lawmakers asked more questions than during previous trade hearings he attended, indicating to him the subcommittee is very interested in how to boost U.S. agricultural exports. “I think we had great attendance from the committee members, and great participation,” he said. “Everybody wanted to know something.”