U.S. Trade Representative Katherine Tai pledged Friday to continue fighting a Mexican ban on biotech corn imports, and she played down the significance of the U.S. trade deficit on agricultural products.
Speaking at USDA’s annual Agricultural Outlook Forum, Tai also briefly touched on the dispute with Canada over dairy trade. She said the Biden administration would “continue to work with Canada to address this issue,” but didn’t say what could be done.
The United States in November lost a second dispute with Canada over the country’s operation of a tariff rate quota for dairy imports under the U.S.-Mexico-Canada Agreement.
The administration hopes for a better outcome in the biotech corn dispute. A three-member USMCA panel has been assigned to rule on the U.S. complaint against Mexico’s attempt to block imports of genetically engineered corn.
“Mexico’s policies regarding agricultural biotechnology threaten to cause serious economic harm to U.S. farmers and Mexican livestock producers. Not only that, those policies stifle important innovations needed to help producers respond to pressing climate and food security challenges,” Tai said.
“This is why, last August, the United States established a dispute settlement panel under the USMCA. We will do everything we can to resolve our concerns.”
As for the ag trade deficit, Tai said that has a lot to do with the strong U.S. dollar, which has fueled consumer demand for imported goods. USDA forecasts U.S. ag exports for fiscal 2024 at $169.5 billion, while imports are projected to reach $200 billion. FY24 began Oct. 1.
“The U.S. dollar is extraordinarily strong at the moment, which gives American consumers more buying power on the international market,” Tai said. “Also, the products when we look at the data that are really driving those important numbers are things like high-value distilled spirits, tropical fruits, coffee, and other products that we do not produce widely here in the United States.”
Two U.S. ambassadors used a session with Agriculture Secretary Tom Vilsack to encourage American producers and companies to take advantage of sales opportunities in Vietnam and the Philippines.
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Ambassador to Vietnam Marc Knapper said the Biden administration has successfully bolstered the U.S. relationship with that country, which he said is “increasingly open” to more ag trade. He said he expects “this upgrade will lead to even greater opportunities for ... ranchers, farmers, fishermen, producers, exporters, to find a way to find opportunities there.”
He said “Vietnam has staked its prosperity on us just as we stake part of our prosperity on Vietnam,” he said.
He expects Vietnam to increase its imports of U.S. cotton as well as animal feed and meat and dairy products. He said U.S. products such as nuts, fruit and wine also “have a reputation for high quality.”
Ambassador to the Philippines MaryKay Carlson said that with their rising incomes Filipinos have “an increasing appetite” for high-value U.S. products as well.
“When you go to a high-end restaurant in Manila, you'll see USDA Choice or USDA Prime beef. They actually use the USDA label. That's how close our peoples and our markets are. And that's the value of the American brand there. … It's hard to put a cap on what the possibilities are when you look at the U.S.-Philippine market.”
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