agricultural trade
Montana Senator helps Chinese win $200-million sweetheart deal for cattle
During President Donald Trump’s recent trip to China, Montana's Republican Senator Steve Daines negotiated a $300 million beef cattle deal between the Montana Stockgrowers Association and the Chinese e-retailer JD.com. The deal calls for the retailer to buy $200 million of cattle between 2018 and 2020, and invest $100 million in a new feedlot and packing plant in Montana. Some ranchers are concerned that this unusual deal will favor certain ranchers over others, and further concentrate power over the American livestock sector in the hands of Chinese companies.
U.S. farm exports are third-highest ever in FY17
Higher commodity prices and increased demand for U.S.-grown goods fueled an 8 percent rise in farm exports to $140.5 billion in fiscal 2017, said Agriculture Secretary Sonny Perdue, two weeks ahead of the USDA's usual year-end report. As forecast in August, farm exports were the third-highest on record and ended a two-year decline.
Canada and Mexico say U.S. asks too much for new NAFTA
With NAFTA negotiations at their midpoint, senior officials from Canada and Mexico accused the United States of seeking unfair trade advantages. U.S. trade representative Robert Lighthizer sternly responded that the United States will no longer tolerate trade deficits.
U.S. asks Canada for more access to dairy, poultry and egg markets in NAFTA talks
Canadian officials say prospects of agreement on a new NAFTA by the end of the year are fading in the face of unacceptable U.S. demands, reports Canadian Press, with some analysts questioning if the true U.S. goal is a breakdown in negotiations. The chief U.S. negotiator told Bloomberg, "We made a request of Canada for improved access for dairy, poultry and eggs" over the weekend, the first time agricultural trade was discussed at the talks.
With NAFTA at crucial point, U.S. farm leaders speak up for trade pacts
U.S. farm leaders turned up the volume in the debate over the new NAFTA, worried that the success story of food and ag exports isn't being heard among the clamor for tougher U.S. trade rules. "We have to be a player in the trade arena so we can move our product out of the country and feed the world," said Zippy Duvall, president of the largest U.S. farm group, during a teleconference on the importance of safeguarding market access in the NAFTA negotiations, now in the fourth of seven scheduled rounds of talks.
With NAFTA talks at crucial point, ag is on the table
The United States will put its agricultural trade proposals on the table with Canada as part of this week's round of negotiations for the new NAFTA, according to Agriculture Secretary Sonny Perdue. It's the fourth of seven scheduled rounds of talks and with limited progress so far, some analysts say the United States is trying to torpedo discussions with unacceptable demands of its North American neighbors.
Negotiators agree on one chapter for new NAFTA, look to quicken pace
At the end of three rounds of negotiations on the new NAFTA, trade ministers from the United States, Canada, and Mexico said they are agreed on a chapter dealing with small and medium-sized enterprises, and that they hope to conclude a chapter on competition before the next round, set for Oct. 11–15 in Washington. A tri-national statement did not mention any discussion of agricultural issues, although “meaningful advancements” were cited in five areas, including the competition chapter.
Brazil beef exports rebound after scandal; U.S. reopening at hand?
The return to fast-paced beef exports indicates that Brazil’s cattle producers and meatpackers may avoid lasting damage from the bribery scandal that rocked the country early this year, said Agrimoney. It cited an estimate by the U.S. agricultural attache in Brasilia that the country would export 1.91 million tonnes of beef in 2018, the fourth year in a row of larger shipments.
In NAFTA talks, U.S. is slow to spell out its proposals
If it's Monday, it must be Canada for trade officials who are in their third round of talks less than six weeks after NAFTA negotiations began on Aug. 16 with hopes of an agreement before the end of the year. The CBC, quoting an unnamed source close to negotiations, says the U.S. team is lagging when it comes to putting its ideas into writing so there can be detailed discussions.
U.S. complaint about Chinese ag tariffs goes to WTO panel
The United States forced the creation of a WTO dispute panel to hear its complaint that China unfairly blocks imports of U.S. corn, wheat and rice, reported Reuters. When it filed the complaint last Dec. 15, the Obama administration said U.S. farmers lost as much as $3.5 billion in sales because China, the largest customer for U.S. ag exports, used so-called tariff-rate quotas (TRQs) to favor domestic producers.
Pork industry sees major Midwest expansion
The U.S. pork industry is spending billions of dollars to build five new plants and expanding another existing plant in the Midwest. But that investment will pale in comparison to the money needed to supply those packing plants with pigs, according to Successful Farming. The five new plants alone will be capable of processing at least 40,000 hogs a day.
American farmers react as trade tensions flare
Once again, farmer groups expressed concern over the heated rhetoric coming out of the White House over trade agreements. The American Soybean Association and U.S. wheat groups were especially critical as a result of indications that the White House would withdraw from the free trade agreement between the United States and South Korea as early as Tuesday.
U.S. ag exports rebound from slump, tie for third-largest ever
U.S. farm exports will total $139.8 billion this fiscal year, the third-highest tally ever and ending a slump in sales that begin in 2014 following the collapse of the commodity boom, estimated the USDA in a quarterly report. In its first forecast for fiscal 2018, the USDA pegged exports at $139 billion.
Canada and Mexico yawn at Trump threat to nix NAFTA
President Trump’s new threat to terminate NAFTA, made during a rally in Phoenix, is a negotiating tactic rather than a serious possibility, said Canadian and Mexican officials. “This was always a card we knew the president would likely play . . . it may have been a bit earlier than expected,” a Canadian official told Reuters.
After starting NAFTA talks, Trump says he may terminate the pact
President Trump told a rally in Phoenix that he may have to kill NAFTA in order to get better trade terms with Canada and Mexico. “Personally, I don’t think we can make a deal,” he said, days after the first round of negotiations for the new NAFTA. “I think we’ll end up probably terminating NAFTA at some point.”
Farm groups to NAFTA negotiators: Do no harm, do no harm, do no harm
“From your perspective, would it have been better if the Trump administration had never raised the issue of renegotiating NAFTA?” The Bloomberg Radio reporter had to ask the question twice before he got an answer, maybe because it conveyed the uncomfortable, but undeniable, sentiment at Wednesday’s joint press conference by the three main farm groups from the United States, Canada, and Mexico.
As talks begin, here’s our recent NAFTA coverage
As talks between Canada, Mexico, and the United States begin on renegotiating NAFTA, here’s an archive of our recent coverage of the trade agreement in Ag Insider. (No paywall)
Mexico, home of avocados, may have to import the fruit
With the price of avocados too high for everyday Mexicans, the country’s officals are considering importing the fruit. Avocados are native to Mexico, which supplies roughly half the world’s demand, but a pound of the fruit now sells for 80 pesos — the same as Mexico’s minimum wage.
Reduced interest overseas in U.S. soybeans
The new soybean marketing year opens on Saturday, and early orders for the U.S. crop are the smallest in years, says a research brief from rural lender CoBank. Global demand is down in the face of the strong dollar, slow economic growth, and uncertainties about U.S. trade policy in an election year.