America’s farmers and ranchers lead the world in producing safe, sustainable food, fiber and fuel for consumers at home and abroad. Agricultural trade is critical to our national economy and to the economic sustainability of family farms and ranches, but non-scientific trade barriers and tariffs restrict farmers’ ability to compete in global markets. We rely on robust trade agreements to establish a level playing field for farmers and ranchers and to protect the jobs and businesses that agriculture supports in the U.S.
Indo-Pacific Economic Framework
The Indo-Pacific Economic Framework has been formally launched by the U.S., along with Australia, Brunei, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam. The Administration’s objectives for the new IPEF includes working with the other countries to expand trade, improve supply chains, promote sustainability, support agriculture, and remove non-tariff trade barriers. The IPEF focuses on science-based food safety standards, will reduce trade barriers, and help expand trade opportunities for U.S. agricultural goods.
U.S. – Taiwan
The U.S. and Taiwan will begin trade talks following an agreed upon agenda, called the “Initiative on 21st-Century Trade.” Taiwan imported $3.8 billion of U.S. agricultural products in 2021, including beef, dairy products, soybeans, fruit, tree nuts, vegetables, and other products. An agreement that adopts science-based food safety standards will help expand trade opportunities for U.S. agricultural goods.
The agreed upon trade agenda will include science-based regulatory practices, agriculture collaboration on common standards, digital trade, labor, environment, trade facilitation, state-owned enterprises, and non-market practices. The initiative will not include market access measures such as reducing or eliminating tariffs.
U.S. – UK Talks
The United States and the United Kingdom began trade agreement negotiations in May 2020. The U.S. exported $2 billion in agricultural products to the UK in 2019, while the UK exported $1.9 billion in agricultural products to the U.S.
As the UK has left the EU it is able to conclude a trade agreement with the U.S. However, these negotiations have not continued since 2020.
Our trade negotiation objectives
U.S.-China Phase 1 Agreement
On Jan. 15, 2020, the U.S. signed a “Phase 1” trade agreement with China that went into force on February 14, 2020. As a part of the agreement, China has agreed to purchase at least $80 billion of U.S. agricultural products cumulatively in 2020 and 2021. The U.S. exported $27 billion of agricultural products to China in 2020 and $34 billion in 2021. Soybeans, corn, pork sorghum and wheat were major purchases by China.
Reforms in food standards affecting imports of beef, poultry, dairy, and horticultural products have been implemented by China. America’s farmers and ranchers are eager to get back to business globally and restoring our ability to be competitive in China is key to that.
With the implementation of the U.S.-Mexico-Canada Agreement, U.S. farmers and ranchers are eager to realize the more than $2 billion in additional farm exports and $65 billion in gross domestic product the pact is expected to provide. The three countries signed the USMCA, the successor to NAFTA, on Nov. 30, 2018, and a revised version of the agreement was signed Dec. 10, 2019. With all three countries having ratified the agreement, USMCA entered into force on July 1, 2020.
Additional resources, including AFBF news and market analysis, can be found here.