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Agricultural Provisions of the U.S.-Mexico-Canada Agreement [Updated April 8, 2019]
From the Document: "On September 30, 2018, the Trump Administration announced the conclusion of the renegotiations of the North America Free Trade Agreement (NAFTA) and the proposed United States-Mexico-Canada Agreement (USMCA). If approved by Congress and ratified by Canada and Mexico, USMCA would modify and possibly replace NAFTA, which entered into force January 1, 1994. NAFTA provisions are structured as three separate bilateral agreements: one between Canada and the United States, a second between Mexico and the United States, and a third between Canada and Mexico. [...] The proposed USMCA would need to be approved by the U.S. Congress and ratified by Canada and Mexico before it could enter into force. Some Members of Congress have voiced concerns about issues such as labor provisions and intellectual property rights protection of pharmaceuticals. Other Members have indicated that an anticipated assessment by the U.S. International Trade Commission (USITC) will be key to their decisions on whether to support the agreement. Canada, Mexico, and some Members of Congress have expressed concern about other ongoing trade issues with Canada and Mexico, such as antidumping issues related to seasonal produce imports and the recent U.S. imposition of a 25% duty on all steel imports and a 10% duty on all aluminum imports. Both the Canadian and the Mexican governments have stated that USMCA ratification hinges in large part upon the Trump Administration lifting the Section 232 tariffs on imported steel and aluminum. Similarly, some Members of Congress have stated that the Administration should lift tariffs on steel and aluminum imports in order to secure the elimination of retaliatory tariffs on agricultural products before Congress would consider legislation to implement USMCA."
Library of Congress. Congressional Research Service
Regmi, Anita
2019-04-08
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Farm Policy: USDA's 2018 Trade Aid Package [Updated June 19, 2019]
From the Introduction: "In early 2018, the Trump Administration--citing concerns over national security and unfair trade practices--imposed increased tariffs on certain imported products in general and on U.S. imports from China in particular. Several of the affected foreign trading partners responded to the U.S. tariffs with their own retaliatory tariffs targeting various U.S. products, especially agricultural commodities. On July 24, 2018, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) would be taking several temporary actions to assist farmers in response to trade damage from what the Administration has characterized as 'unjustified retaliation.' Specifically, USDA would authorize up to $12 billion in financial assistance--referred to as the 'trade aid' package--for certain agricultural commodities under Section 5 of the Commodity Credit Corporation (CCC) Charter Act (15 U.S.C. 714c). [...] This report provides background on the trade dispute that triggered the trade-aid package as well as the authority used by USDA to respond to the trade dispute with financial assistance. Then the report describes the three components of the trade-aid package with details on their implementation."
Library of Congress. Congressional Research Service
Schnepf, Randall Dean, 1954-; Monke, James; Stubbs, Megan . . .
2019-06-19
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U.S. Challenges to China's Farm Policies [Updated November 17, 2020]
From the Document: "In early 2019, the World Trade Organization (WTO) ruled in favor of the United States in two cases that the U.S. Office of the Trade Representative (USTR) filed against China, alleging that China's agricultural policies were inconsistent with its WTO obligations. While China agreed to conform to the WTO rulings, USTR contends that Beijing failed to act on one of the cases by the agreed-upon deadline of June 30, 2020. On July 16, 2020, USTR submitted a notification to the WTO requesting authorization to take countermeasures against imports from China."
Library of Congress. Congressional Research Service
Regmi, Anita
2020-11-17
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U.S. Challenges to China's Farm Policies [Updated October 22, 2020]
From the Document: "In early 2019, the World Trade Organization (WTO) ruled in favor of the United States in two cases that the U.S. Office of the Trade Representative (USTR) filed against China, alleging that China's agricultural policies were inconsistent with its WTO obligations. While China agreed to conform to the WTO rulings, USTR contends that Beijing failed to act on one of the cases by the agreed-upon deadline of June 30, 2020. On July 16, 2020, USTR submitted a notification to the WTO requesting authorization to take countermeasures against imports from China."
Library of Congress. Congressional Research Service
Regmi, Anita
2020-10-22
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Agricultural Provisions of the U.S.-Mexico-Canada Agreement [Updated November 20, 2020]
From the Introduction: "The United States-Mexico-Canada Agreement (USMCA), a comprehensive trade agreement among the three countries, entered into force on July 1, 2020. USMCA replaced the North American Free Trade Agreement (NAFTA), which had been in effect since 1994 (P.L. 103-182). USMCA continues the liberalization of agricultural trade within North America, which has been under way for more than three decades. It also addresses a number of trade-related issues that NAFTA did not consider. This report provides a brief history of agricultural trade agreements within North America, explores the changes made in the USMCA, and considers how the new agreement is likely to affect the flow of trade in agricultural commodities and food products."
Library of Congress. Congressional Research Service
Regmi, Anita
2020-11-20
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'Stage One' U.S.-Japan Agreement: Agriculture [October 21, 2020]
From the Summary: "On October 7, 2019, the United States and Japan signed the U.S.-Japan Trade Agreement (USJTA), which provides for limited tariff reductions and quota expansions to improve U.S. access to Japan's market, covering mostly agricultural products. The agreement, which entered into force January 1, 2020, also provides for reciprocal U.S. tariff reductions, largely on industrial goods. Japan previously negotiated agricultural market access provisions with the United States in the context of the Trans-Pacific Partnership (TPP), a 2016 agreement among 12 Pacific-facing nations that the United States did not ratify. Those provisions were folded into the agreement that the remaining TPP countries agreed upon--the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)--that went into force for Japan on December 30, 2018."
Library of Congress. Congressional Research Service
Regmi, Anita
2020-10-21
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Major Agricultural Trade Issues in the 116th Congress [May 20, 2019]
From the Summary: "Sales of U.S. agricultural products to foreign markets absorb about one-fifth of U.S. agricultural production, thus contributing significantly to the health of the farm economy. Farm product exports, which totaled $143 billion in FY2018 [...], make up about 9% of total U.S. exports and contribute positively to the U.S. balance of trade. The economic benefits of agricultural exports also extend across rural communities, while overseas farm sales help to buoy a wide array of industries linked to agriculture, including transportation, processing, and farm input suppliers."
Library of Congress. Congressional Research Service
Regmi, Anita; Angadjivand, Sahar; Cowan, Tadlock . . .
2019-05-20
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Farm Policy: USDA's 2018 Trade Aid Package [Updated June 14, 2019]
From the Document: "In early 2018, the Trump Administration--citing concerns over national security and unfair trade practices--imposed increased tariffs on certain imported products in general and on U.S. imports from China in particular. Several of the affected foreign trading partners (including China) responded to the U.S. tariffs with their own retaliatory tariffs targeting various U.S. products, especially agricultural commodities. On July 24, 2018, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) would be taking several temporary actions to assist farmers in response to trade damage from what the Administration has characterized as 'unjustified retaliation.'"
Library of Congress. Congressional Research Service
Schnepf, Randall Dean, 1954-; Monke, Jim; Stubbs, Megan . . .
2019-06-14
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China's Retaliatory Tariffs on U.S. Agriculture: In Brief [September 24, 2019]
From the Overview: "The U.S.-China trade dispute started in March 2018, when President Trump announced tariffs of 25% on steel and 10% on aluminum imports (with some flexibility on the application of tariffs by country) using presidential powers granted under Section 232 of the Trade Expansion Act of 1962. [...] China has retaliated with tariffs on a wide range of U.S. imports, including agricultural products. [...] During 2018 and 2019, the United States and China have taken a number of actions to escalate the trade dispute. This report provides a timeline of U.S. action and Chinese retaliation on U.S. agricultural products. It also provides a broad overview of Chinese retaliatory tariffs on U.S. agricultural products as of September 2019 and the proposed additional Chinese tariffs that may be in effect by December 2019. It concludes with key issues for Congress to consider."
Library of Congress. Congressional Research Service
Regmi, Anita
2019-09-24
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Retaliatory Tariffs and U.S. Agriculture [Updated September 13, 2019]
From the Document: "Certain foreign nations have targeted U.S. food and agricultural products with retaliatory tariffs since early 2018 in response to U.S. Section 232 tariffs on steel and aluminum imports and Section 301 tariffs levied on U.S. imports from China. Retaliatory tariffs have made imports of U.S. agricultural products relatively more expensive compared to similar products from competitor nations. In the short run, U.S. shipments of products to countries with retaliatory tariffs have declined, reducing overall global demand for affected U.S. agricultural products and driving down the prices of U.S. agricultural commodities. Depending on the length and depth of the tariffs and the range of products affected, some experts caution that the long-run trade impacts could inflict further harm as U.S. competitor countries have an incentive to expand their agricultural production."
Library of Congress. Congressional Research Service
Regmi, Anita
2019-09-13
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Foreign Trade Remedy Investigations of U.S. Agricultural Products [March 11, 2020]
From the Document: "Foreign countries appear to be making greater use of punitive measures affecting U.S. agricultural exports. These measures, corresponding to duties the United States has long imposed on imports found to be traded unfairly and injuring U.S. industries, have the potential to reduce the competitiveness of U.S. agricultural exports in some foreign markets. Recent changes in U.S. agricultural policy, including over $23 billion in 'trade aid' payments in 2018 and 2019 to farmers affected by higher Chinese tariffs on certain U.S. products, may increase the likelihood of foreign measures that adversely affect U.S. agricultural trade. The imposition of anti-dumping and countervailing duties is governed by the rules of the World Trade Organization (WTO) and of WTO's 1995 Agreement on Agriculture (AoA). Under the AoA, member countries agreed to reform their domestic agricultural support policies, increase access to imports, and reduce export subsidies. The AoA spells out the rules to determine whether policies are potentially trade distorting. If a trading partner believes that imported agricultural products are being sold below cost ('dumped') or benefit from unfair subsidies, it may impose anti-dumping (AD) or countervailing duties (CVD) on those imports to eliminate the unfair price advantage."
Library of Congress. Congressional Research Service
Regmi, Anita; Hart, Nina M.; Schnepf, Randall Dean, 1954-
2020-03-11
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U.S.-China Phase I Deal: Agriculture [Updated February 7, 2020]
From the Document: "On January 15, 2020, President Trump signed a 'Phase I' executive agreement (that does not require congressional approval) with the Chinese government on trade and investment issues, including agriculture. This marks at least the temporary resolution of a dispute that began when the United States imposed tariffs on a wide range of Chinese exports in 2018, and China retaliated with tariffs on almost all U.S. agricultural products and certain other goods. Under the agreement, China will not repeal any tariffs. It is possible that China will grant tariff exclusions for various agricultural products, lowering their prices to domestic buyers in order to reach a target level of U.S. imports. The agreement is expected to improve market access for U.S. agricultural products."
Library of Congress. Congressional Research Service
Regmi, Anita
2020-02-07
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U.S.-China Phase I Deal: Agriculture [January 22, 2020]
From the Document: "On January 15, 2020, President Trump signed a 'Phase I' executive agreement (that does not require congressional approval) with the Chinese government on trade and investment issues, including agriculture. This marks at least the temporary resolution of a dispute that began when the United States imposed tariffs on a wide range of Chinese exports in 2018, and China retaliated with tariffs on almost all U.S. agricultural products and certain other goods. Under the agreement, China will not repeal any tariffs but will grant tariff exclusions for various agricultural products in order to reach a target level of U.S. imports. The agreement is expected to improve market access for U.S. agricultural products. The value of U.S. agricultural exports to China was far lower in 2018 and 2019 than in 2017 due to the retaliatory tariffs imposed by China (see CRS Report R45903, 'Retaliatory Tariffs and U.S. Agriculture'). Key provisions of the agreement are discussed below."
Library of Congress. Congressional Research Service
Regmi, Anita
2020-01-22
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Reforming the WTO Agreement on Agriculture [July 20, 2020]
From the Introduction: "As a member of the World Trade Organization (WTO), the United States has committed to abide by its rules and disciplines, including those under the Agreement on Agriculture (AoA). The AoA, which took effect when the WTO was established on January 1, 1995, brought agricultural trade, for the first time, under a set of international rules and disciplines analogous to those that have long applied to trade in other goods. [...] The COVID-19 [coronavirus disease 2019] outbreak has highlighted various weaknesses in global food supply chains and emphasized concerns related to agricultural issues not addressed in the AoA, such as with regard to farm labor and the environment. These new issues and the postponement of MC12 [WTO's 12th Ministerial Conference] could represent a window of opportunity for Congress to consider how the United States could shape the negotiations over trade in agricultural products at MC12 and beyond."
Library of Congress. Congressional Research Service
Regmi, Anita; Hart, Nina M.; Schnepf, Randall Dean, 1954-
2020-07-20
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U.S. Challenges to China's Farm Policies [July 27, 2020]
From the Document: "In early 2019, the World Trade Organization (WTO) ruled in favor of the United States in two cases that the U.S. Office of the Trade Representative (USTR) filed against China, alleging that its agricultural policies were inconsistent with its WTO obligations. While China agreed to conform to the WTO rulings, USTR contends that Beijing failed to act on one of the cases by the agreed-upon deadline of June 30, 2020. On July 16, 2020, USTR submitted a notification to the WTO requesting authorization to take countermeasures against imports from China."
Library of Congress. Congressional Research Service
Regmi, Anita
2020-07-27
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U.S. Challenges to China's Farm Policies [Updated January 14, 2021]
From the Document: "In early 2019, the World Trade Organization (WTO) ruled in favor of the United States in two cases that the U.S. Office of the Trade Representative (USTR) filed against China, alleging that China's agricultural policies were inconsistent with its WTO obligations. While China agreed to conform to the WTO rulings, USTR contends that Beijing failed to act on one of the cases by the agreed-upon deadline of June 30, 2020. On July 16, 2020, USTR submitted a notification to the WTO requesting authorization to take countermeasures against imports from China."
Library of Congress. Congressional Research Service
Regmi, Anita
2021-01-14
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