US Grain officials see possible political motivation in Russian ban
WASHINGTON, Feb. 17, 2016 - Late last week, Russia instituted
a temporary ban on U.S. corn and soybean imports after the country raised
concerns about potential diseases being carried in through the crops, but the
ban raised an interesting conundrum.
The U.S. doesn’t send any corn to Russia.
When asked about the level of U.S. corn exports to Russia,
U.S. Grains Council President and CEO Tom Sleight held up his right hand to
form a circle, telling Agri-Pulse
those exports are “zippo,” not including some shipments of popcorn.
No one outside of the Russian government knows the exact
reason why the country would block imports of something it already wasn’t
importing, but there are two possible explanations: a translation error
confusing popcorn with corn, or a political maneuver – possibly related to
developments in the Middle East or Ukraine – in a longstanding trade battle
between the U.S. and Russia.
“I think it probably has more to do with our overall
relationship with Russia right now than anything else,” USGC Director of Trade
Policy and Biotechnology Floyd Gaibler told Agri-Pulse
Monday at the organization’s annual meeting in Sarasota, Florida. “The reality
of it is that if the problems that they were noting were that serious, they
would show up in other markets.”
For soybean producers, losing the Russian market temporarily
won’t cripple the industry by any means, according to Jim Miller, vice chairman
of the U.S. Soybean Export Council (USSEC). He said it was “pretty
disappointing” to have a temporary ban because it could set a precedent, but
ultimately, Russia is not a very big market for U.S. soybeans.
“They’re less than 1 percent of our exports, but still it’s
a concern any time we have a disruption in a market,” Miller said.
Miller said USSEC is working to “have the issue resolved in
a short time and things will get back to normal,” but he didn’t expect broader
ramifications from the ban.
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