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Vietnam to Eliminate U.S. Wheat Import Tariff

ARLINGTON, Virginia — Today’s announcement that Vietnam’s government will eliminate a 3 percent U.S. wheat import tariff effective December 30, 2021, is welcome news to producers at home and their customers and wheat food processors in Vietnam.

As we reported in August 2021, U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) appreciate the efforts by the Biden Administration, USDA’s Foreign Agricultural Service (FAS) and Vietnam’s Ministry of Finance toward eliminating this tariff, which follows a reduction from 5 percent to 3 percent in July 2020.

Vietnam imported more than 500,000 metric tons of U.S. hard red spring, soft white, hard red winter, and soft red winter wheat valued at $129 million in marketing year 2020/21, second in volume only to Australia. Vietnam imports an average of about 4 million metric tons of wheat per year.

“U.S. wheat exports to Vietnam’s growing market are much slower so far this year because of short supplies and rising prices, so eliminating this tariff is very important for growers like me,” said Darren Padget, USW Chairman and a soft white wheat grower from Grass Valley, Ore.

“With about half of the wheat we produce available for export each year, we depend on increasing access to markets like Vietnam,” said Dave Milligan, NAWG President and a wheat grower from Cass City, Mich. “Here at home, NAWG will continue advocating for trade policies that work toward positive opportunities for wheat growers and their customers.”

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About USW

U.S. Wheat Associates’ (USW) mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six U.S. wheat classes. For more information, visit www.uswheat.org.

About NAWG

NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national level. From their offices on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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Further Resolution to the Aircraft Trade Dispute between the U.S. and UK is Welcome News for Wheat Grower Organizations

ARLINGTON, Virginia – U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the announcement that the United Kingdom (UK) and the United States agreed to a five-year moratorium on retaliatory tariffs for large civil aircraft subsidies. This break suspends the retaliatory tariffs levied on non-durum U.S. wheat imports by the UK. The agreement is similar to one struck earlier this week between the United States and the European Union (EU). This long-running dispute at the World Trade Organization allowed the UK and EU the right to impose tariffs on non-durum U.S. wheat imports, which mainly impacted U.S. hard red spring and some hard red winter wheat.

“The wheat industry is thankful for President Biden and Ambassador Tai’s commitment to prioritize the trade relationships between the United States, European Union, and now the United Kingdom,” said NAWG CEO Chandler Goule. “The five-year truce announced on Tuesday with the EU and yesterday with the UK removes a significant trade barrier on wheat exports and provides long-term certainty for wheat growers in the upper Midwest.”

USW President Vince Peterson noted that this agreement provides the basis for an open dialogue on trade that hopefully will also pre-empt the use of retaliatory tariffs in the still unresolved steel and aluminum dispute between the United States and the UK.

About U.S. Wheat Associates
U.S. Wheat Associates’ (USW) is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six U.S. wheat classes. For more information, visit www.uswheat.org.

About the National Association of Wheat Growers
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national level. NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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Wheat Grower Organizations Welcome End to U.S.-EU Aircraft Trade Dispute

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) congratulate the Biden Administration and U.S. Trade Representative Katherine Tai for resolving the long-running World Trade Organization dispute over aircraft subsidies and suspending retaliatory tariffs that were a barrier to U.S. wheat exports to the European Union.

Under the aircraft dispute, the EU placed retaliatory tariffs on non-durum U.S. wheat, which effectively blocked average annual imports of more than 538,000 metric tons of mainly U.S. hard red spring and some hard red winter wheat. Three months ago, the United States and the EU agreed to temporarily suspend all retaliatory tariffs and imports resumed almost immediately.

The agreement announced this week suspends the retaliatory tariffs for five years, pending how negotiations on aircraft subsidies go. That is welcome news for wheat farm families in the Northern and Central Plains.

For more information, visit the USW website.

About U.S. Wheat Associates
U.S. Wheat Associates’ (USW) is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six U.S. wheat classes. For more information, visit www.uswheat.org.

About the National Association of Wheat Growers
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national level. NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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Wheat Grower Organizations Welcome USTR Confirmation of Katherine Tai

WASHINGTON, D.C. — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the U.S. Senate’s confirmation of Katherine Tai today as the next U.S. Trade Representative. During the confirmation hearing process, Tai said she understands the values and rules that guide global commerce and the importance of enforcing those terms “vigorously.”

Most encouraging is Tai’s past work as a chief enforcer against China’s unfair trade practices under the Obama Administration and involvement in final negotiations for the United States-Mexico-Canada Agreement (USMCA). Tai addressed these topics during her confirmation process.

“I know firsthand how critically important it is that we have a strategic and coherent plan for holding China accountable to its promises and effectively competing with its model of state-directed economics,” said Tai. “I know the opportunities and limitations in our existing toolbox.”

“Tai’s confirmation comes at a crucial time for U.S. wheat trade,” said USW President Vince Peterson. “After seeing early, encouraging returns on the Phase One agreement with China, we are looking ahead as the WTO moves to the compliance phase of the 2019 dispute case won by the United States against China’s unfair administration of their grain tariff rate quotas. U.S. wheat farmers will also want Tai to hold China to the additional enforcement language in the Phase One agreement.”

“We appreciate the bipartisan support from the Senate in confirming Ms. Katherine Tai to this important position,” said NAWG CEO Chandler Goule. “Fair and clear access to international markets is crucial for U.S. wheat farmers, and we look forward to working with her and her team on taking an aggressive stance on prioritizing agricultural trade efforts.”

About U.S. Wheat Associates
U.S. Wheat Associates’ (USW) is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six U.S. wheat classes. For more information, visit www.uswheat.org.

About the National Association of Wheat Growers
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national level. NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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Wheat Organizations Pleased with Break in U.S.-EU Aircraft Disputes

WASHINGTON, D.C. – U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) and welcome the announcement that the European Union and the United States have mutually agreed to a four-month suspension of tariffs related to the World Trade Organization (WTO) aircraft disputes. This break removes the tariff barrier on U.S. hard red spring wheat imports by EU countries.

Following is a joint statement from USW President Vince Peterson and NAWG CEO Chandler Goule:

“We want to thank the Biden Administration and the Office of the U.S. Trade Representative for reaching this agreement. Our organizations encourage both parties to come to a long-term resolution to avoid future tariffs and supply chain disruptions.”

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About U.S. Wheat Associates
U.S. Wheat Associates’ (USW) is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six U.S. wheat classes. For more information, visit www.uswheat.org.

About NAWG
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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Wheat Organizations Welcome Tom Vilsack Back to USDA

WASHINGTON, D.C. – The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) are pleased with the bipartisan U.S. Senate vote today approving the appointment of former Secretary of Agriculture Tom Vilsack to that important post again under the Biden-Harris Administration.

“We welcome Secretary Vilsack’s return to USDA in a year that is projected to see record U.S. agricultural exports,” said USW President Vince Peterson, who currently serves on the USDA Agricultural Policy Advisory Committee for Trade. “We look forward to working with him again to continue building on the successful export market development partnership between U.S. wheat farmers and USDA.”

“NAWG applauds the Senate for its timely consideration and strong bipartisan support for confirming Secretary Tom Vilsack to lead the USDA once again,” said NAWG CEO Chandler Goule. “Like many farmers across the country, wheat growers are facing economic challenges, and we are pleased to see the Senate and President work to fill these leadership positions at the USDA with qualified candidates, so we can continue to work on policy that benefits rural America. Secretary Vilsack is uniquely qualified to head up the USDA, having served there previously, and has an exceptional understanding of agricultural and rural issues. We look forward to working with him and continuing to build our relationship with the USDA.”

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About U.S. Wheat Associates 
U.S. Wheat Associates’ (USW) is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six U.S. wheat classes. For more information, visit www.uswheat.org.

About NAWG
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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Wheat Industry Welcomes Final Congressional Passage of the Grain Standards Reauthorization Act

Washington, D.C. – Today, the House of Representatives passed the United States Grain Standards Reauthorization Act (GSA) of 2020, S. 4054. The National Association of Wheat Growers (NAWG) applauds both the House and Senate for their bipartisan work to move the bill forward and reauthorize the GSA through September 30, 2025. NAWG and U.S. Wheat Associates (USW) have worked collaboratively over the last year and a half to identify priorities for the reauthorization process, given the critical importance of the United States’ weighing and inspection system to our competitiveness in the world market.

“With our farmers facing tough economic challenges, including several years of low commodity prices and headwinds blowing against overseas demand, it is critically important that we at least maintain a smooth grain inspection system. We applaud Republicans and Democrats in the House and Senate for working together to get this piece of legislation passed by the end of the year,” said NAWG President and Cass City, Mich., farmer Dave Milligan. “To maintain a properly functioning grain inspection system, NAWG encourages the President to sign this bill into law before the closing of 2020.”

Dave Milligan, NAWG President

“This law and our system of standardized, independent grain inspection makes U.S. wheat more valuable,” said USW Chairman Darren Padget, a wheat farmer from Grass Valley, Ore. “The proof of that came this year when many of our overseas buyers expressed a real concern that the pandemic would interrupt our supply chain and Federal Grain Inspection Service (FGIS) inspections.”  

Darren Padget, USW Chairman

The Grain Standards Act serves a critical role in exporting grains and oilseeds, including U.S. wheat, of which about 50 percent is exported each year. The grain inspection system assures overseas buyers that an independent agency has certified shipments to their contracted specifications. This objective certification adds a competitive advantage to U.S. wheat and other commodities that helps maintain and grow export markets. 

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.  

About NAWG
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public. 

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U.S. Wheat Organizations Welcome USMCA Entry into Force

Washington, D.C. – The U.S.-Mexico-Canada Agreement (USMCA) is set to cross its final hurdle to entry today as the three countries certify the agreement’s “entry into force.” This final step means that all required legislative and regulatory changes needed to implement the agreement have been put into place or are scheduled to take effect.

“A completed USMCA finally gets us past the uncertainty and that is welcome news to U.S. wheat growers,” said U.S. Wheat Associates (USW) Chairman and Paulding, Ohio, wheat farmer Doug Goyings. “Especially as we now see an opportunity for U.S. negotiators to take this as a gold standard agreement and launch negotiations with other countries, where U.S. wheat growers face tariff and non-tariff barriers.”

“After years of hard work, we are excited to see USMCA be put into action. USMCA is not only vital for farmers but essential to help grow the rural economy,” stated NAWG President and Cass City, Mich., farmer Dave Milligan. “The wheat industry thanks Congress and the Administration for helping to put this trade deal into effect.”

While there will be little direct change for U.S. wheat exports headed to Mexico, the agreement’s entry into force is a prime example of no news being an indicator of good news. The new agreement tightens coordination over sanitary and phytosanitary (SPS) rules and other non-tariff trade issues, but most importantly it places certainty back in the trading relationship with USW’s largest export market. In the marketing year 2019/20, which ended May 31, 2020, Mexico purchased more than 3.87 million metric tons (MMT) of U.S. wheat valued at $881 million.

On the other side of the continent, Canada published the new rules for U.S. farmers hoping to deliver wheat into the Canadian grain handling system. Those new rules, allowing U.S. grown wheat brought across the border to Canadian grain elevators to be graded on a level playing field, are a significant step in furthering equal trade between the countries’ wheat growers. U.S. farmers wishing to take advantage of this new provision will need to grow wheat varieties registered in Canada’s Variety Registration System.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.  

About NAWG
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public. 

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Wheat Industry Applauds Bipartisanship Around the Grain Standards Reauthorization Act

Washington, D.C. – Today, the U.S. Senate Committee on Agriculture held a business meeting to markup the United States Grain Standards Reauthorization Act (GSA) of 2020. The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) applaud the Committee for their bipartisan work to move the bill forward and reauthorize the GSA through September 30, 2025.

“Thanks in part to the advantage and premium international buyers place on the grain inspection system, U.S. wheat continues to maintain its competitiveness in the international market. Given the current uncertainty in trade agreements and many of the bearish factors working against U.S. wheat exports, it is critical we maintain one of our key advantages,” said National Association of Wheat Growers (NAWG) President and Cass City, Mich., farmer Dave Milligan. “To avoid any disruption in inspection services and keep the flow of grain moving NAWG encourages Congress to act quickly to reauthorize the Grain Standards Act before expiration in September.”

The United States Grain Standards Reauthorization Act of 2020, introduced by Committee Chairman Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI), extends the authorization for the Federal Grain Inspection Service (FGIS) of the U.S. Department of Agriculture (USDA) to continue providing inspection services and to maintain an official marketing standard for certain grains and oilseeds. On July 31, 2019 Kansas wheat farmer Brian Linin testified to the Senate Committee on Agriculture on behalf of NAWG in support of reauthorization of GSA. Linin also serves on the Kansas Wheat Commission and is a U.S. Wheat Associates board member.

“Our exports markets are critical to U.S. wheat farmers’ bottom lines as they see 50 percent of U.S. wheat exported each year,” said U.S. Wheat Associates (USW) Chairman and Paulding, Ohio, wheat farmer Doug Goyings. “The grain inspection system is one of our key advantages over our competitors that has helped wheat and other U.S. commodities grow export markets. Our overseas customers value the independent system in place through the Grain Standards Act.”

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public. 

 

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U.S. Wheat Industry Applauds the Trump Administration for Signing the U.S. Mexico-Canada Agreement into Law

Washington, D.C. – Today, the National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) extend thanks to President Trump for signing the U.S.-Mexico-Canada Agreement (USMCA) into law, making it an official trade agreement.

“USMCA will bring some guarantee to the unpredictable climate of farming,” said National Association of Wheat Growers (NAWG) President and Lavon, Tex., farmer Ben Scholz. “Trade deals create markets which provide stability for growers, making the profession more attractive to future generations. NAWG would like to thank the Administration again for working to get this agreement finalized.”

“Wheat farmers and Mexico’s wheat buyers are very glad to see the cloud of uncertainty lifted from our trade relationship,” said U.S. Wheat Associates (USW) Chairman and Paulding, Ohio, wheat farmer Doug Goyings. “Replacing NAFTA without harm to the wheat trade relationship was a priority for all of us – mission accomplished.”

USMCA retains tariff-free access to imported U.S. wheat for those long-time flour milling customers in Mexico, a crucial step toward rebuilding trust in the U.S. as a reliable supplier in this important, neighboring market. In addition, the USMCA makes important progress towards more open commerce for U.S. wheat farmers near the Canadian border by allowing U.S. varieties registered in Canada to receive reciprocal grading treatment.

Other measures that benefit the wheat industry include the Agreement’s language around agricultural biotechnology which supports 21st Century innovations in agriculture and new language to strengthen disciplines for science-based SPS measures.

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.  

NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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