Reworked NAFTA Agriculture Provisions Could Resemble TPP, USDA Chief Says

Following the administration's formal notification to Congress on May 18 (see 1705180043), the Office of the U.S. Trade Representative will post a Federal Register notice requesting public input on the “direction, focus, and content” of the planned NAFTA renegotiation, USTR said in a press release (here). “USTR will now continue consultations with Congress and American stakeholders to create an agreement that advances the interests of America’s workers, farmers, ranchers, and businesses,” U.S. Trade Representative Robert Lighthizer said in a statement.

Rep. Jim Costa, D-Calif., signaled concern on retaliation threats and offered to work with Perdue on steering clear of increasing those through the renegotiation. Costa referenced Mexican tariff increases on 89 U.S.-origin products in 2009, after Mexico claimed the U.S. abrogated NAFTA obligations by canceling a cross-border trucking pilot (see 09031905), as well as the World Trade Organization’s 2015 authorization for Canada and Mexico to increase tariffs on U.S. exports in retaliation for U.S. country-of-origin labeling requirements on muscle cuts of meat (see 1512070017). “They’ve got some pretty good negotiators on the other side[s] as well,” Perdue said. “So I don’t think you have to be too concerned about us taking advantage of anyone.” Perdue also added that the U.S. could likely improve its market position in terms of fruit and vegetable trade with Mexico through NAFTA renegotiation.

Rep. Doug LaMalfa, R-Calif., expressed disappointment over TPP language that would have required Japan to allow 50,000 more tons of rice exports per year, “which mean[s] about seven other growers could grow it themselves, so that didn’t mean a whole lot,” he said. He asked Perdue to work toward greater market access in any future agricultural negotiations with Japan.

Rep. Don Bacon, R-Neb., said many in his state’s agriculture community are concerned about some of the Trump administration’s tough statements on NAFTA, TPP and other trade issues, and Perdue responded with a commitment to work to expand U.S. exports. He added that while the administration is “excited about the potential” of exporting U.S. beef to China, after Treasury announced that China plans to allow U.S. beef imports as soon as possible (see 1705120003), “we don’t want to ... exult, in that we’ve got some work to do from a protocol perspective,” Perdue said. “But I believe that we and they are very serious about this, and we’ll do the victory dance, hopefully, pretty soon.”

Perdue said working to liberalize China’s biotechnology approval regime is “right up there with beef” in terms of trade talks with China. China has agreed to hold a meeting of its National Biosafety Committee by the end of this month to conduct science-based safety investigations of all eight pending U.S. biotechnology product applications (see story referenced above). Perdue expressed confidence that once the U.S. secures Chinese biotech approvals, the administration can persuade other nations to recognize the safety and efficacy of those Chinese-approved U.S. food products, and admit them into their markets. Rep. Rodney Davis, R-Ill., said he hopes Perdue will work with lawmakers to address beef exports and overseas biotech approvals in the next farm bill, expected in 2018.

Rep. Rick Crawford, R-Ark., highlighted that the White House is reviewing the recently liberalized U.S. trade policy toward Cuba, urging Perdue to be a “vocal advocate” within the administration for championing agricultural trade with the nation. Perdue said that, while administration decisions regarding U.S. crediting policy in Cuba trade transactions is “beyond my pay grade,” on agriculture,“if they grow it, I want to sell it. And they eat in Cuba as well.” Crawford urged Perdue to endorse H.R. 525, the Cuba Agricultural Exports Act (here), which would repeal provisions in the Trade Sanctions Reform and Export Enhancement Act of 2000 that ban U.S. financing of agricultural exports to Cuba. “I think that’s something I would be supportive of,” Perdue said. “If folks around the world need private credit to buy our products, I’m all for that.”

Perdue also touched on the recently announced under secretary for trade and foreign agricultural affairs position to be created within the Agriculture Department. Acknowledging it’s “not an easy thing to do,” he said that the department is working through the technical details of the position’s creation. Perdue is standing up the position, which was authorized in the 2014 Farm Bill, after hearing from Senate, House and other stakeholders who by and large said trade was their No. 1 agricultural concern. “I wanted someone every day that woke up with that on their mind: ‘Where can I go to sell United States agricultural products around the world? Who’s hungry? Who will buy? How can we do the deal?’” Perdue said.

The trade under secretary position will help USDA to join the Commerce Department and the Office of the U.S. Trade Representative in a “triumvirate of sales,” he said. “This guy’s going to be a million-mile flyer around the world to be there in person, because we know that foreign interests love to see you in person. It’s an honor for them for us to come to their doorstep, and call on them.”