U.S. fertilizer companies are "materially injured" by imports of subsidized phosphate fertilizer from Russia and Morocco, said the U.S. International Trade Commission on Thursday, so it approved, on a 4-1 vote, the imposition of countervailing duties on the imports.
U.S. farm exports are forecast by the USDA to hit a record $157 billion this year, aided by a weaker dollar against many foreign currencies. Agricultural lender CoBank says the impact will be somewhat uneven, with meat and dairy products benefiting the most.
The world's most populous country is already its largest meat-importing nation and "looks like it's poised to play a major role in meat markets in the future," said USDA senior economist Fred Gale on Thursday. China's imports of beef, pork, and poultry are projected by the USDA to grow 29 percent in the coming decade.
The Biden administration's plan to enlist American agriculture in mitigating climate change through cover crops and carbon trading could pay dividends in another field entirely — negotiations for freer agriculture trade, said an American Enterprise Institute paper on Tuesday. The United States would be in a stronger bargaining position if it shifted some of its farm subsidies into .s.o-called green box programs that are deemed not to distort international trade, said the paper written by three farm policy experts.
Private exporters reported the largest sale of U.S.-grown corn to Chinese buyers in nearly six months, with 1.36 million tonnes for delivery this marketing year, said the USDA on Tuesday. It was only the fifth time since 1994 that corn sales to China exceeded 1 million tonnes in a single day.
The farm economy, battered since 2018 by a trade war and a pandemic, is rallying, though it is too early to declare a return to prosperity, said the president of the largest U.S. farm organization on Thursday, reserving judgment on whether more stopgap federal aid will be needed.
The Uruguay Round of trade negotiations, concluded in 1994, created tariff-rate quotas for agriculture with the expectation that they would be a stepping stone to freer trade. Instead, most of those TRQs are still in place and new WTO members have added 43 more, says a report by three USDA researchers.
The ethanol industry, which says it has lost $3.8 billion in sales since March, is looking to the Biden administration for relief at the same time that farm groups want the new president to resolve the trade war with China. But a Purdue University professor said it was unlikely Biden would immediately undertake broad-scale trade reform, pointing out that "he has other priorities that take precedence."
The Trump administration said it was challenging Canadian quotas on dairy imports as unfair to U.S. milk producers. The challenge, announced on Wednesday, was the first under the United States-Mexico-Canada free trade agreement.
World leaders must remain vigilant to keep food trade flowing during the pandemic and to continue using trade as a lever to improve farm income and productivity, said the head of the UN Food and Agriculture Organization on Sunday. Speaking during the Group of 20 summit held online, director general Qu Dongyu said, "It is essential for the G20 to keep working on preventing this health crisis from becoming a global food crisis."