U.S. Wheat Associates (USW) is disappointed that Trade Promotion Authority (TPA), which allows the executive branch to negotiate trade agreements subject to an up-or-down vote in Congress, was left to expire early Sunday morning. The organization also expressed appreciation for efforts by the U.S. Trade Representative (USTR) and others within the Administration to ensure the best chance for approval of pending free trade agreements (FTAs) that will directly benefit U.S. wheat growers. USW is the U.S. wheat industry's export market development organization.
"TPA has been an important catalyst for bilateral trade agreements because many countries are likely to be skeptical about negotiating with the U.S. knowing Congress has the ability to amend an agreement," said USW President Alan Tracy. "We agree with Secretary of Agriculture Mike Johanns who noted last week in his statement supporting TPA renewal that since TPA was last authorized in 2002, 'U.S. agricultural exports have grown from $53.1 billion to $68.7 billion in 2006. Each billion dollars in agricultural exports support 13,400 job on and off the farm.” Tracy says that is one reason why Ambassador Susan Schwab and her staff at USTR worked so hard to negotiate new labor and environmental rules for pending FTAs with Colombia, Peru, Panama and South Korea before TPA expired, allowing these agreements to be considered without the possibility for amendment.
Trade is essential to the U.S. wheat industry, which exports about half its product and recognizes its prospects for growth are greatest with improved access to overseas markets. Pending FTAs with Colombia and Peru, for example, will immediately eliminate import duties on U.S. wheat and are expected to spur an additional $200 million of U.S. wheat purchases per year.
"U.S. Wheat Associates will continue to work closely with the Administration to gain approval of the pending free trade agreements and hopes to see TPA renewed again some day soon," Tracy said. "That step will help continue the legacy of growth from FTAs, and will help the U.S. negotiate for a successful Doha Round at the World Trade Organization offering equitable market access for U.S. farmers while protecting domestic farm policies."