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McKinney optimistic about improving trade with Brazil

A USDA Undersecretary says the U.S. trade team is in Brazil asking them to address major ag trade issues. Ted McKinney says, “The areas we focused on have been the 20-year-old WTA-mandated wheat TRQ, which is a tariff rate quota, which has not been honored. The second one is the ethanol tariff.”

McKinney says they are also trying to remove a third major ag trade barrier. “It doesn’t seem fair that they can export pork to the U.S., even in smaller quantities, and we can’t do the same to them.”

McKinney says he is cautiously optimistic the U.S. and Brazil can make progress in a new two-way trade arrangement that is more fair to U.S. producers. “Brazil enjoys a three-to-one advantage to us in trade. I would say that’s not free, fair, and reciprocal.”

USDA and U.S. Trade Representatives officials are also planning to host Brazilian officials for additional trade talks next month.

Before traveling to Brazil, McKinney and the USDA trade team spent two days in the Dominican Republic this week, where he says U.S. exports have almost doubled since 2007 including an 11% spike in early 2018.  He also says Dominican are pleased with the CAFTA-DR trade agreement and do not wish to renegotiate it.