The Impact of Trade
on Agriculture
and
The Impact of Agriculture
on Trade
U.S. T R A D E R E P R E S E N T A T I V E
E X E C U T I V E O F F I C E O F T H E P R E S I D E N T
1
Sharon Bomer Lauritsen
Assistant U.S. Trade Representative, Agricultural Affairs
October 26, 2015
U.S. Animal Health Association
OUTLINE
Changes to international trade of agriculture products
U.S. Government Trade Policy for Agriculture
Resolving barriers to exports of U.S. agricultural products
Implications of Trade Agreements for Agriculture
Tariffs
Sanitary and Phytosanitary Measures
Trans-Pacific Partnership: New Approach to SPS Issues
Importance of the science behind SPS measures
2
Source: USDA/FAS/GATS PSD database. Crop year data.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
U.S. Ag Exports as a Share of Production
Exports are a critical source of income for a
wide range of ag products
3
Billion $
Source: USDA/FAS/GATS. CY data.
0 5 10 15 20 25 30
Philippines
Indonesia
Taiwan
Hong Kong
South Korea
EU
Japan
Mexico
Canada
China
FTA Countries
FTAs under
Negotiation
China/HK/Taiwan
4
U.S. Ag Exports Top Markets
Source: IDB Integration and Trade Sector based on INTrade.
5
RTA
Expansion
1975
Source: IDB Integration and Trade Sector based on INTrade.
6
RTA
Expansion
1995
Source: IDB Integration and Trade Sector based on INTrade.
7
RTA
Expansion
2014
Trade Agreements: US Ag Exports US Ag Imports US Trade Surplus
(5)
15
35
55
75
95
115
135
19
47
19
51
19
55
19
59
19
63
19
67
19
71
19
75
19
79
19
83
19
87
19
91
19
95
19
99
20
03
20
07
20
11
GATT Established Kennedy Round Tokyo Round Uruguay Round
Trade Act of 1974 Trade Act of 1988 Trade Promotion Authority
Fast Track Denied
China in WTO
Doha launched
CAFTA-DR NAFTA Japan: Beef
and Citrus
Korea, Colombia,
Panama FTAs
Trade Agreements and Exports
8
U.S. Government Agencies and
Trade Policy for U.S. Agriculture
Office of the U.S. Trade Representative
(Executive Office of the President)
U.S. Government Trade Policy Development
Negotiate Trade Agreements
Monitor and Enforce Trade Agreements
Ensure U.S. Consistent with Trade Obligations
Interagency Process (USDA, FDA, EPA, State)
9
TPP
TTIP
Doha
After Doha
Trade Facilitation
Farm Bill Domestic Support
Disputes
SPS China
GI
Labeling
COOL
biotech
TPA
Currency
Cotton
ROO
India AI
China Poultry
10
World Trade Organization Elimination of tariffs – expand market access
Ag Subsidies constraints
Rules for Sanitary and Phytosanitary Measures
Rules for Technical Barriers to Trade
Dispute Settlement
Free Trade Agreements
Tariffs
Ag Subsidies, etc.
11
Appropriate Level of Protection Not more trade restrictive than
necessary Science Based Use of International Standards Risk Assessment Timely Transparency Regionalization Equivalency
12
An estimated 4.1 million jobs are supported by current
U.S. Exports of Goods and Services to TPP Countries
United States
Economy
13
42%
$63 billion U.S. agriculture exports
to TPP countries in
2014: 42% of all U.S.
agricultural exports
Agriculture
$898 billion U.S. goods and services
exports to TPP
countries
40% of all U.S. exports
40%
Trans-Pacific Partnership Agreement
Eliminate or reduce existing tariff and non-tariff obstacles.
Largest gains expected to occur in the high value categories.
Boost exports to key U.S. export markets like Japan and
Canada.
Better position U.S. farmers, ranchers, and food processors in
rapidly expanding consumer markets in Vietnam and Malaysia.
Provide improved transparency and science-based regulations.
14
TPP: Unprecedented market access for U.S. agriculture
Builds on WTO Agreement (“WTO Plus”)
Risk Analysis
Equivalency
Regionalization
Certification
Emergency Measures
Audits
Import Checks
Resolution to Unwarranted Barriers
15
How Do Trade Agreements Resolve
Unwarranted SPS Barriers?
16
SPS Barriers: Traditional Approaches to
Resolution
Bilateral Technical Engagement
Bilateral Political Level Engagement
World Trade Organization SPS
Committee
WTO Dispute Settlement
17
Bilateral Technical Engagement
Led by Regulatory Agencies
APHIS
FSIS
FDA
EPA
FAS Overseas Posts
Examples
NAPPO work on Mexico Potato Issue
BSE
HPAI 18
Bilateral Political Level Engagement
USTR Involvement
Engage political and economic ministries
Free Trade Agreements
Trade and Investment Framework Agreement
Country Coalitions
Examples
South Africa: Poultry, Pork, Beef
China and Korea – beef
Taiwan – beef and pork (beta-agonists)
EU: Animal cloning
19
Leverage with FTA Negotiations
Australia - pork
Mexico – beef and potatoes
EU – Lactic Acid
Japan, Singapore – beef
Malaysia – pork
Chile/Peru – live cattle
20
World Trade Organization SPS Committee
Bilateral Meetings
Formal Meetings: Floor interventions
Role of International Organizations
(OIE, IPPC, Codex)
Examples
Ag Biotech
EU Endocrine Disruptors
21
WTO Dispute Settlement
WTO SPS Agreement
Appropriate Level of Protection
Not more trade restrictive than
necessary
Science Based
Timely
Risk Assessment
WTO Member comment period
22
WTO Dispute Settlement
US Offensive Cases
India: Avian Influenza
EU: Hormones
EU: Ag Biotech
Japan: Fireblight/Pesticide MRLs
US Defensive Cases
Argentina: FMD and Lemons
China: Poultry
23
Central Issue to any SPS Issue
SCIENCE!!!
24
Challenges Remain
Linkage of issues by countries
Congressional laws
Resources and prioritization
Dispute Settlement not always
effective
25
Solutions?
Capacity building for developing countries
Development and use of international standards
Coordination and Cooperation of Academic, State and Private Sector Experts with Government
Industry:
Develop support in country
Get approvals in key export markets of new technologies
26
