USDA’s forecast of a looming record farm trade deficit next year raises the specter of an earlier debate and questions over the administration’s policy not to do free trade agreements.
The 42-and-a-half billion-dollar farm trade deficit, if realized, again raises the issue of the administration rejecting market-opening free trade deals.
Earlier this year in front of lawmakers, USTR Katherine Tai said “No, we’re not doing the big, comprehensive agreements that are great for Ag and terrible for our industries. But, we are nevertheless securing wins, including 21 billion dollars over the last three years.”
But, Tai’s argument before Senate Ag lawmakers this year swayed few, including retiring Democratic Ag Chair Debbie Stabenow. She said, “I know there are many agriculture stakeholders that sent you a letter urging you to commit to an aggressive agriculture trade agenda. It’s so important that we have those markets. We need those markets, and we need the trade agreements.”
Top Finance panel Republican Mike Crapo says U.S. producers have already been hurt by the lack of new trade deals. He says, “Australia and New Zealand each negotiated free trade agreements with Thailand. And since then, demand for premium U.S. beef fell by 30 percent because our cattlemen face a 50 percent tariff while those two partners face none.”
USDA Chief Economist Seth Meyer blames the record Ag trade deficit forecast on falling commodity prices, a slower Chinese economy, and the continued strength of the U.S. dollar.
But South Dakota Republican John Thune sees it as even more reason to do trade deals to open new markets. Thune says, “Market access is what our farmers and ranchers are looking for to open up the markets, so they can sell their products, and get the trade deficit back to a trade surplus and get this net farm income back in the positive column.”
Story by Matt Kaye/Berns Bureau; courtesy of NAFB News Service
