News

U.S., Japan to Begin Trade Negotiations

On Wednesday, September 26 U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe issued a joint statement announcing that the United States and Japan will enter into trade negotiations for a United States-Japan Trade Agreement. The agreement will encompass goods as well as services, and both countries are also willing to discuss other trade and investment issues.

In the statement, the United States and Japan emphasized that this agreement will respect the positions of both governments on sensitive trade topics, including automobiles and agriculture.

Read the full statement here.

U.S., Korea Sign Revised Trade Agreement

On Monday, September 24 U.S. President Donald Trump and South Korean President Moon Jae- issued a joint statement regarding the conclusion of the negotiations to revise KORUS, the Korea-United States free trade agreement.

The updated KORUS agreement includes several small changes that could result in improved Korean market access for U.S. automakers, an extension of U.S. tariffs on Korean pickup trucks until 2041, and Korean steelmakers being subject to a quota of about 2.68 million tons of steel exports that will be exempt from the new tariffs. This is 70 percent of the annual average Korean steel exports to the United States between 2015-2017.

U.S. Imposes $200 Billion in Tariffs on China; China Retaliates

On Monday, September 24 the Trump Administration began implementing tariffs on a list of products announced on September 17. This latest set of tariffs are set at 10 percent on $200 billion worth of imports from China. These tariffs come on top of the $50 billion worth of tariffs already imposed earlier this year, meaning nearly half of all Chinese imports into the United States will soon face levies. The tariffs will remain at 10 percent until the end of the year, and if China does not make adequate concessions, these new tariffs will then increase to 25 percent on January 1, 2019.

The United States Trade Representative (USTR) published a list of the wide range of products that will be affected.

In response, the Chinese government announced retaliatory tariffs of 5 to 10 percent on $60 billion of imports from the United States. Items effected range from meat to wheat to aircraft and took effect on September 24.

U.S. Food & Agriculture Dialogue for Trade

On Thursday, September 20 Gary Martin chaired a meeting of the U.S. Food and Agriculture Dialogue for Trade at the American Farm Bureau Federation. Dialogue guests Roger Wentzel, Deputy Assistant U.S. Trade Representative for Agricultural Affairs and Jeffrey Jones, Senior Policy Advisor at the USDA’s Foreign Agricultural Service (FAS) provided off the record comments on the status of trade agreement talks with various nations, particularly potential free trade agreements with the European Union, the United Kingdom, and the Philippines.). Following a robust session with the guests,  Asia-Pacific and North American Market Working Group chairs provided updates and plans for Dialogue meetings on October 18 and November 20 were preliminarily set.  

NAEGA Contracts Committee

The NAEGA Contracts Committee met on Thursday, September 20. Committee members discussed the status of the new NAEGA 2 contract’s adoption, was provided an update on Subcommittee action regarding differing interpretations of Addendum 1, Clause 6b, and also informed the Committee of an upcoming training on the rules of arbitration conducted by the American Arbitration Association, designed with NAEGA Special Grain Arbitrators in mind.

NGFA-NAEGA Joint Statement on U.S. Trade following Senate Agriculture Committee Hearing

On September 19, NAEGA and NGFA submitted a joint statement to the U.S. Senate Agriculture Committee as a follow up to the Committee’s September 13 hearing concerning perspectives on U.S. agricultural trade. The statement provided information on the performance of U.S. trade with respect to the grain, feed, grain and oilseed processing, and export sectors. The statement goes into detail about agricultural trade with current trade agreement partners, the European Union, Japan, and China, and warns of the harm that lost market share can inflict on U.S. exporters.

Read the full statement here.

USDA Releases Methodology Behind Trade Mitigation Programs

On September 13, the United States Department of Agriculture (USDA) released the methodology used in calculating trade damage estimates for its Market Facilitation Program (MFP) and Food Purchase and Distribution Program (FPDP). USDA developed an estimate of gross trade damages for commodities with assessed retaliatory tariffs by Canada, China, the European Union, Mexico, and Turkey to set commodity payment rates and purchase levels in the trade mitigation package announced by USDA earlier this month.

In the report, the USDA’s Chief Economist Robert Johansson explained that the gross trade damage only reflects direct export losses due to the retaliatory tariff imposed on the U.S. commodity. Indirect or secondary effects from the tariff, such as cross-commodity effects, are not reflected in the gross trade damage estimate.

Find the full text of the Trade Methodology Report here.

U.S. FDA Announces new Export Certification Program

On August 31, the U.S. Food and Drug Administration (FDA) announced its new export certification program for certain FDA-regulated products such as grains, processed foods, food additives, color additives, food contact substances, and infant formula. The FDA may charge up to $175 for each certification.

The FDA anticipates that this new export certification will facilitate trade by assisting U.S. food exporters in fulfilling importing country requirements for FDA certification of FDA-regulated food products. Exporters should note that the FDA’s export certification program for foods is intended to be complementary to export certification for foods currently issued by other U.S. government agencies. As the FDA launches this new export certification program for foods, the arrangements currently in place for certain food commodities with other U.S. government agencies will remain the same.

The FDA will begin issuing and collecting fees for the new export certifications on October 1, 2018. For more information, see the Federal Register notice.

Trump Imposes $200 Billion in Tariffs on China; China Retaliates

On Monday, September 17 President Trump announced the imposition of 10 percent tariffs on $200 billion worth of imports from China. These tariffs come on top of the $50 billion worth already imposed earlier this year, meaning nearly half of all Chinese imports into the United States will soon face levies. The tariffs will go into effect on September 24 and will remain at 10 percent until the end of the year. If China does not make adequate concessions, the new tariffs will then increase to 25 percent on January 1, 2019.

The United States Trade Representative (USTR) published a list of the wide range of products that will be affected.

Later on September 17, China retaliated with tariffs of 5 to 10 percent on $60 billion of imports from the United States. China’s retaliatory tariffs, on items ranging from meat to wheat to aircraft, are also set to take effect on September 24.

Licensing of U.S. Agricultural Shipments to Cuba

The U.S. Commerce Department’s Bureau of Industry and Security (BIS) is requesting public comments on the effectiveness of its licensing procedures for exports of agricultural commodities to Cuba. BIS will include a description of these comments in the biennial report it is required to submit to Congress under the Trade Sanctions Reform and Export Enhancement Act of 2000.

In particular, BIS is seeking comments on the following areas:

  1. The number and types of licenses applied for and approved.
  2. The average amount of time from the date of filing an application until the date of its approval.
  3. The extent to which the licensing procedures were effectively implemented.

For more information, see the Federal Register notice. Comments are due by October 17, 2018.