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TPP-11 Puts U.S. Wheat Exports at Risk

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are expressing concern that a revised Trans-Pacific Partnership (TPP) that excludes the United States puts overseas demand for U.S. wheat at serious risk.

“On January 23, 2017, President Trump announced the United States would pull out of the TPP. The announcement today that the eleven remaining TPP members have concluded talks on a revised deal without us sends a discouraging signal to our long-time wheat importing customers in Japan,” said Ben Conner, USW Director of Policy.

Japan imports an average of 3.1 million metric tons of U.S. wheat every year. After full implementation of the new TPP, Japan’s import tariffs on Canadian and Australian wheat would drop by about $65 per ton.

“That would put U.S. wheat producers at a total price disadvantage of more than $200 million per year from TPP alone,” Conner said. “As the agricultural community warned when the President made the announcement, withdrawing from TPP was shortsighted and unnecessary, and now U.S. wheat farmers could take the hit.”

“As expected, the remaining members of TPP are moving forward without the United States,” said Gordon Stoner, NAWG President and a wheat grower from Outlook, Mont. “If nothing else, this announcement should serve as a rallying cry for farmers, ranchers and dairy producers calling for the new trade deals we were promised when the President walked away from TPP. The heat needs to be turned up on the administration and on trade negotiations with Japan. An already stressed agriculture sector needs the benefit of free and fair trade now.”

The so-called TPP-11 countries include Canada and Australia, which are major competitors to the United States in the Japanese wheat market. Other TPP countries with rapidly growing demand for imported wheat include Mexico, Vietnam, Malaysia, Chile and Peru, Singapore, Brunei and New Zealand round out the remaining TPP partner countries

 

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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. 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 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 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.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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USW Worries Steel Industry Demands Could Disrupt Trade and Threaten National Security

U.S. Wheat Associates (USW) sounds an alarm today in reaction to the Department of Commerce’s announcement that it has submitted to the White House the results of its Section 232 investigation of the national security implications of steel imports. Done at the prodding of a large segment of the U.S. steel industry, the investigation and its potential results likely ignore the disastrous implications for other U.S. sectors from extreme trade protections for commonly traded steel.

The World Trade Organization’s (WTO) national security exception from normal trade rules has traditionally been narrowly defined for truly exceptional products deemed necessary to maintain essential security interests. There is a good reason for this cautious approach, respected by virtually every country: common usage of it would undermine decades of carefully negotiated trade rules that foster peaceable global trade. These types of restrictions on a commonly traded product like steel blows that exception apart.

Global trade rules were pioneered by the United States after World War II precisely to avoid the types of protectionist trade policies that exacerbated tensions leading to the global conflict. Since national security exceptions are self-declared and unenforceable, the United States using that exception as a loophole could lead to a major breach in the system of global trade rules with unpredictable consequences.

Specifically, USW believes that there is no greater national security interest for a country than being able to feed its people, which is best achieved through open markets. If the United States restricts steel imports under a national security claim, some countries may use the same pretense to restrict imports of U.S. wheat and other agricultural products.

“While we don’t yet know the contents of Commerce’s recommendations to President Trump, if they’re anything like what the steel industry has proposed, we hope the President will do the right thing and reject it,” said USW President Vince Peterson. “Under the pretense of asking for fair trade, the steel industry is looking for sweeping protection, and that threatens to undermine the global trade rules that have helped keep our country secure and our farmers competitive.”

The steel industry supplied about two thirds of the domestic market in 2017 and has nearly 150 existing trade remedies in place against imported steel products. Section 232 is a different type of remedy that could allow unprecedented and sweeping trade restrictions that disregard carefully negotiated WTO rules. While it may target Chinese steel in part, China did not even break the top 10 sources of U.S. steel imports in 2017.

“The domestic steel industry already has more protection in place than any other industry so there is no reason to blow up trade rules to restrict imported steel,” said USW Chairman Mike Miller, a farmer from Ritzville, Wash. “As a farmer, I know that I always have to work hard to stay competitive; if steel companies can’t do that with dozens of trade remedies already in place, maybe they should look for solutions that address the real problems instead of just restricting trade.”

To view USW’s previous statement on the Section 232 investigation, click here.

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.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Commodity Organizations Support Science-Based Trade Regulations at WTO Ministerial

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and members of the U.S. Grains Council (USGC), U.S. Soybean Export Council (USSEC), USA Rice, the National Corn Growers Association (NCGA), the National Sorghum Producers (NSP) and the National Barley Growers Association (NBGA) welcomed a joint statement issued this week from 17 countries participating in the 11th Ministerial Conference of the World Trade Organization (WTO) in Buenos Aires, Argentina, emphasizing the importance of supporting farmer access to the full range of tools and technologies available and opposing regulatory barriers lacking sufficient scientific justification.

“Having in mind the importance of transparency and predictability to international trade, we call on all Members to strengthen the implementation of the WTO SPS [Sanitary and Phytosanitary] Agreement by reinforcing the work of relevant international standards organizations and ensuring the scientific basis of SPS measures is sound,” the statement reads.

“The development and application of sound SPS measures is needed to support farmers’ choice in tools that can expand agricultural production and facilitate access to food and agricultural products, and also to safeguard human, animal and plant health.”

Government officials from Kenya, Uganda, Costa Rica, the Dominican Republic, Chile, Canada, Colombia, Argentina, and the United States delivered remarks in favor of the joint statement of understanding on Dec. 12, 2017, during a side event to the main WTO meetings.

Representatives from the Inter-American Institute for Cooperation in Agriculture (IICA), the United Nations’ Food and Agriculture Organization (FAO), the Brazilian Confederation of Agriculture and Livestock (CNA), the International Soy Growers Alliance and MAIZALL, an international maize alliance, also provided supporting comments.

The statement demonstrates global support for all farmers and the tools and innovations they need to protect their crops from devastating diseases and destructive pests while delivering safe food sustainably to the world’s consumers. The signatories take a step forward in calling out countries that undermine farmer choice through regulatory barriers that are not scientifically justified.

Recognizing the “central importance of risk analysis to assess, manage and communicate risks of concern associated with pesticide use in order to protect public health while enabling the safe use of pesticides and facilitate trade in food and ag products,” these countries remained committed to expanding knowledge and capacity for developing countries in pesticide maximum residue levels (MRLs). Ultimately, common understanding will help facilitate bilateral and multilateral efforts to assess and manage risk concerns in a more scientific, transparent and harmonized manner.

Read the full statement here.

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.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Lighthizer Defends U.S. Agriculture at WTO Ministerial

ARLINGTON, Virginia — U.S. Wheat Associates (USW) thanks U.S. Trade Representative Robert Lighthizer for his efforts to defend U.S. agriculture against attempts to weaken the World Trade Organization (WTO) rules on domestic support in agriculture. The Buenos Aires Ministerial would be a failure if the trade liberalizing mission of the WTO were to take a massive step backwards through a permanent exemption for market price supports for certain major agriculture producers.

India and other countries have attempted to create a permanent loophole for certain types of price support programs associated with state-run stockpiling programs. These types of price supports can be highly trade distorting, violating both WTO rules and the spirit of trade liberalization that the organization is meant to embody.

Worse, by holding the entire trade negotiating system hostage to demands to weaken commitments on agriculture, these countries are undermining the WTO and exacerbating the institutional challenges it faces.

Domestic support negotiations are a non-starter for U.S. agriculture without market access liberalization. For example, India’s bound tariff rate on wheat is 100 percent, giving it more than enough policy space to restrict all wheat imports. U.S. tariffs are much lower in virtually all products. To be clear, USW does not object to holding public stocks for food security, which is critical for all countries. Public stockholding has always been included in the Agreement on Agriculture’s “Green Box” of non-trade distorting support, but with the recognition that administered prices (i.e. price supports) should be properly notified considering their potential to distort trade. There is no such restriction on purchases for public stocks using market prices.

U.S. farmers are firmly committed to open markets and continuing productive negotiations at the WTO and other forums to improve the global trading system. Giving in to misguided attempts to weaken the system while holding hostage all other negotiations is a recipe for failure far greater than the lack of a ministerial declaration in Buenos Aires. U.S. agriculture needs a strong, vibrant WTO, but WTO rules needs to be strengthened, not weakened. If the only outcome in agriculture at the Buenos Aires ministerial were to be the creation of a massive, permanent loophole for the most trade distorting programs, the ministerial would be a failure.

Last week, U.S. Wheat Associates and 13 other agriculture organizations sent a letter to USTR in advance of the ministerial.

U.S. Wheat Associates (USW) is the industry’s market development organization working in more than 100 countries. Its 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 are funded by producer checkoff dollars managed by 17 state wheat commissions and USDA Foreign Agricultural Service cost-share programs. For more information, visit www.uswheat.org or contact your state wheat commission.

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Nondiscrimination and Alternate Means of Communications
USW prohibits discrimination in all its programs and activities based on race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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U.S. Wheat Associates, Other Farm Organizations Outline Priorities for WTO Ministerial

ARLINGTON, Virginia — The World Trade Organization will hold its Eleventh WTO Ministerial Conference Dec. 10 to 13, 2017, in Buenos Aires, Argentina. In a letter to U.S. Trade Representative Robert Lighthizer, U.S. Wheat Associates (USW) and 13 other U.S. farm organizations urged the United States to defend the interests of U.S. agriculture. Specifically, the letter describes industry stances on public stockholding and domestic support, while underscoring the importance of an effective dispute settlement mechanism for agriculture.

First addressing attempts to weaken the WTO Agreement on Agriculture by exempting price support programs tied to public stock procurement, the letter said “Market price support is one of the most trade distorting forms of domestic support for agriculture. Relaxing price support disciplines for certain countries could lead to a much more distorted global marketplace.”

The letter pointed out a closely related challenge in the push for new domestic support commitments.

“It is surreal to witness attempts to negotiate new domestic support commitments when so many countries have flagrantly ignored current commitments,” the organizations wrote. “Any domestic support outcome should carefully target the deficiencies in the system that led to such enormous abuses.” The groups also credited Ambassador Lighthizer for addressing this problem through the dispute settlement case against China on its non-compliant price support programs for wheat, corn and rice.

Finally, the farm organizations expressed strong support for the WTO dispute settlement system and its crucial role addressing some of the major challenges in agricultural markets. They pointed to much improved global trade rules for agriculture following the creation of the WTO and negotiation of new free trade agreements. The groups also expressed concern that U.S. actions to block WTO Appellate Body appointments indefinitely could prevent resolution of current cases and discourage new ones that might benefit U.S. agriculture.

The following organizations signed the letter: American Farm Bureau Federation, American Soybean Association, National Association of Wheat Growers, National Barley Growers Association, National Corn Growers Association, National Council of Farmer Cooperatives, National Sunflower Association, U.S. Canola Association, U.S. Dry Bean Council, U.S. Grains Council, U.S. Soybean Export Council, U.S. Wheat Associates, USA Dry Pea & Lentil Council, USA Rice Federation

Full text of the letter is posted below.

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.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Wheat Growers Call for New Trade Agreements

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) strongly urge the Office of the U.S. Trade Representative (USTR) to pivot from re-negotiating existing free trade agreements (FTAs) to negotiating new deals, as repeatedly promised by President Trump as a candidate and since taking office.

The United States and Korea yesterday pledged to begin negotiations on aspects of the U.S.-Korea Free Trade Agreement (KORUS). While the wheat industry does not in principle object to modernizing trade agreements, such as the ongoing negotiations to update NAFTA, KORUS is the United States’ most recent trade agreement and is barely a quarter of the way through full implementation. It also passed with strong bipartisan support in Congress after being negotiated under two separate administrations.

“While we disagreed, the President made clear that he did not support the Trans-Pacific Partnership. We were promised a series of bilateral trade agreements in its place,” said NAWG CEO Chandler Goule. “USTR has limited resources — it is time to get past plowing the same fields and start opening ground in new markets. Right now, we are standing around watching the world pass us by on trade agreements.”

USW and NAWG recently weighed in against withdrawal from KORUS for fear of market disruptions and concern that the United States will lose leverage and incentives to get good trade deals in the future.

“I’m glad to see we’re not making any rash decisions about withdrawing from trade agreements, but we need to see more than that,” said USW President Vince Peterson. “In the decade since KORUS was negotiated we have no new trade agreements and zero additional market access for wheat farmers. The Administration has committed to ‘do no harm’ for agriculture, but we think there is harm in not negotiating new agreements.”

The United States has not completed any new trade agreements and withdrawn from the Trans-Pacific Partnership since KORUS was signed in 2007. Over the same period, wheat export competitors have been significantly more active in signing new FTAs:

Argentina: Israel, Botswana, Lesotho, Namibia, South Africa, Swaziland, Egypt, Colombia.

Australia: Chile, Brunei Darussalam, Burma, Malaysia, Philippines, Singapore, Vietnam, Cambodia, Laos, Indonesia, Korea, Japan, Canada, Mexico, Peru, China.

Canada: Iceland, Liechtenstein, Norway, Switzerland, Peru, Colombia, Jordan, Panama, Honduras, Korea, Ukraine, Australia, Brunei Darussalam, Japan, Malaysia, New Zealand, Singapore, Vietnam.

European Union: Albania, Montenegro, Serbia, Bosnia and Herzegovina, Kosovo, Korea, Moldova, Georgia, Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, Madagascar, Mauritius, the Seychelles, Zimbabwe, Fiji, Papua New Guinea, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Colombia, Ecuador, Peru, Cameroon, Ukraine, Ghana, Ivory Coast, Botswana, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Canada.

Russia: Belarus, Moldova, Tajikistan, Armenia, Kazakhstan, Kyrgyzstan, Uzbekistan, Vietnam

Ukraine: Iceland, Liechtenstein, Norway, Switzerland, Azerbaijan, Belarus, Armenia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Uzbekistan, Montenegro, European Union.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 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 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 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.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S. Wheat Organizations Urge Administration Not to Withdraw from KORUS

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) strongly urge the Trump Administration not to withdraw from the U.S.-Korea Free Trade Agreement (KORUS).

“We believe it would be irresponsible to unilaterally walk away from this or any other trade agreement,” said Mike Miller, USW Chairman and a wheat grower from Ritzville, Wash. “Withdrawing raises the specter of retaliation against agricultural exports and creates unnecessary uncertainty in the market. Any disruption in the relationship wheat growers have built in Korea over more than 60 years gives Australia, Canada and even Russia an opening to move in and take business away from us at a time when we are all struggling to stay profitable. KORUS, like the North American Free Trade Agreement, has been very good for American agriculture.”

“We think this trade agreement, negotiated in good faith and strongly supported in Congress, reinforces the Administration’s stated goal to sell more agricultural products overseas,” said David Schemm, NAWG President and a wheat grower from Sharon Springs, Kan. “We support finding ways to improve any agreement, but let’s do that in a reasoned and respectful way, with input from all stakeholders so U.S. wheat farmers can gain greater access to world markets.”

Korea was the sixth largest volume importer of U.S. wheat in marketing year 2016/17 (June to May).

USW is the industry’s export market development organization with a mission 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 a federation of more than 20 state wheat grower associations that works to represent the needs and interests of wheat producers before Congress and federal agencies. Based in Washington, DC, NAWG is grower-governed and grower-funded, and works in areas as diverse as federal farm policy, trade, environmental regulation, agricultural research and sustainability. For more information, visit our website at www.wheatworld.org.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S. Wheat Organizations Comment on NAFTA Renegotiation Objectives

WASHINGTON, D.C. — The Trump Administration released its objectives for renegotiating the North American Free Trade Agreement (NAFTA) today and U.S. wheat farmers, who are facing low prices and increasingly aggressive wheat exporting competitors, are encouraged to see that the interests of agriculture are an important part of the Administration’s priorities.

“Because NAFTA helped make Mexico one of the most important export markets for U.S. wheat, our main priority right now is to do no harm to wheat trade,” said David Schemm, president of the National Association of Wheat Growers (NAWG) and a wheat farmer from Sharon Springs, Kan. “We are happy to see that the objectives call for maintaining existing reciprocal duty-free market access for agricultural goods. Mexican buyers import more of the wheat my neighbors and I grow than any other country and we can’t afford to risk interrupting that positive relationship with our customers.”

Wheat farmers agree with the Administration that renegotiation can set the stage for a stronger NAFTA and set standards for trade agreements going forward. A good place to start is with the updated rules on sanitary and phytosanitary health and safety standards that the three countries already agreed to as part of the Trans-Pacific Partnership negotiation.

“The United States, Canada, and Mexico are all strong advocates of free trade and science-based regulations,” said Mike Miller, chairman of U.S. Wheat Associates (USW) and a wheat farmer from Ritzville, Wash. “We should go big in this negotiation and agree to align around those gold standard rules. That will ensure that all three countries can’t throw out regulations that are just flimsy excuses to restrict trade.”

NAWG and USW also want to see a change in Canada’s restrictions on cross-border trade.

“We believe wheat should be allowed to cross the border and be treated equally,” Miller said. “Today Canadian wheat can move into our handling system freely, but U.S. wheat farmers don’t have the same opportunity in Canada. NAFTA renegotiation is a good context with which to address this issue.”

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 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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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Flag and wheat representing the Cuban wheat market
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U.S. Wheat Organizations See Hope in Growing Public Support for Cuban Trade

WASHINGTON, DC – Even as President Trump announces changes to current travel and trade rules with Cuba, U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are hopeful that the increasing public and congressional support for more open trade will lead to an eventual end to the U.S. embargo.

“This is a political process and that means there are going to be steps forward and back,” said USW President Alan Tracy. “Our organizations support measures that move toward ending the embargo. Cuba is a significant wheat importing nation and our farmers can supply high-quality wheat at a lower cost than Cuba pays now to import European and Canadian wheat. Wheat is an important food grain that should be above politics, but the embargo will likely have to end before wheat farmers can help meet the increasing demand for agricultural products to help feed the Cuban people.”

“Wheat growers are facing significant economic hurdles and need more markets,” said David Schemm, a wheat farmer from Sharon Springs, KS, and NAWG President. “NAWG supports the effort to end the embargo on Cuba because it is what is best for our farmers. Farmers know that agricultural trade is a proven way to foster stronger and more productive ties with folks who live outside the United States.”

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA/Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

NAWG is a federation of 20 state wheat grower associations that works to represent the needs and interests of wheat producers before Congress and federal agencies. Based in Washington, DC, NAWG is grower-governed and grower-funded, and works in areas as diverse as federal farm policy, trade, environmental regulation, agricultural research and sustainability.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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A Warning to Commerce: National Security Arguments Cut Both Ways

ARLINGTON, Virginia — The Department of Commerce (DOC) has released public comments, including comments submitted by U.S. Wheat Associates (USW), related to its investigation into the national security implications of steel imports. USW believes that if the United States goes down a road to restricting steel imports, many countries may use the same national security pretense to restrict imports from U.S. wheat farmers. After all, food security has always been tied to national security. To view USW’s full submission, click here.

Under Section 232 in the Trade Expansion Act of 1962, the Commerce Department may investigate the effect of imports on national security. Commerce announced its investigation of steel imports on April 20, 2017. It is the first such investigation since 2001. Findings could lead to a conclusion that protective duties on imported steel should be applied for national security reasons.

“Pursuing a strategy of import protection under the guise of national security would set a dangerous precedent,” said USW President Alan Tracy. “If the United States undermines WTO national security exemptions, it would be handing a gift-wrapped roadmap of protectionism to food self-sufficiency advocates all over the world.”

The World Trade Organization (WTO) allows countries to impose trade restrictions for very few reasons, including national security. This exception is rarely used outside of weapons, nuclear materials and the like because most countries understand that doing so would open a Pandora’s Box of competing national security claims. If the United States went first with a commonly traded product like steel, many countries would be eager to include food security in the exception.

“I’m all for challenging unfair subsidies, but farmers like me know you need to use the right tool to fix a problem,” said Jason Scott, USW Chairman and a wheat farmer from Easton, Md. “Citing national security to block imports like this would be like lighting a fire to kill a weed. It might do the job but you could destroy the whole field.”

The Department of Commerce has only authorized duties twice after Section 232 investigations, and not once since the WTO was created in 1995. The WTO agreements include an exemption under GATT Article XXI for trade restrictions related to “essential security interests,” which can be defined broadly by the WTO member country.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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