The importance of international trade to agriculture cannot be overstated. The Ag Exports Count coalition notes that U.S. ag exports alone generate $340 billion for the U.S. economy and support 1.1. million U.S. jobs.
Keeping U.S. farm products flowing abroad and related jobs rooted here at home means working hard to strike deals that open new markets. It also means holding trading partners accountable and enforcing trade laws when our competitors try to skirt the rules or cheat the system – something that is becoming more commonplace.
As the chairman of the House Agriculture Committee, Rep. K. Michael Conaway (R-TX), stated in 2016 during a series of hearings held to highlight the rise of foreign subsidization:
“While we were busy writing the 2014 farm bill, which achieved significant reforms and savings, our biggest foreign competitors were increasing to new heights their already high subsidies, tariffs, and other trade barriers. This harms our farmers and ranchers, it harms our economy, and it costs America jobs. That’s why the U.S. government must hold our trading partners accountable when they violate their trade commitments. We cannot allow foreign government subsidies, tariffs, and other barriers to free trade to continue at the expense of America’s farmers and ranchers.”
This position was reinforced by House Agriculture Committee Ranking Member Collin Peterson (D-MN), who said:
“America’s farmers are ready and able to compete in a global marketplace but can’t do so without a level playing field. The United States has a responsibility to hold other countries accountable when they fail to honor their WTO commitments, resulting in lost opportunities for American farmers.”
And that’s exactly what the United States did last year when the Obama administration filed a case with the World Trade Organization (WTO) against China for manipulating markets and subsidizing beyond agreed-to levels – actions that harmed U.S. rice, wheat, and corn producers.
Of course, China isn’t alone, and this is not an issue isolated to the previous administration. The Trump administration is currently sending a strong signal to Mexico for breaking U.S. trade laws and dumping subsidized sugar on the U.S. market to injure American producers.
Source: www.farmpolicyfacts.org