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Shutdown delaying key U.S. agriculture trade activities
An agriculture leader says the government shutdown is preventing trade opportunities from being finalized.
National Potato Council CEO Kam Quarles says his trip to Japan last week with the U.S. Secretary of Agriculture ended before it even began.
“It costs us time,” he says. “It misses an opportunity for us to finally, finally get a deal on what could be a tremendous opportunity to chew into that ag trade deficit.”
Quarles says dairy, grains, poultry and eggs, and soybean organizations were also part of his group.
USDA’s trade missions to Japan and Taiwan were halted last week as part of the shutdown, which are part of the agency’s Trade Reciprocity for U.S. Manufacturers and Producers (T.R.U.M.P.) Missions.
Another trip to Mexico next month could also be canceled if the federal government remains closed. That trip is intended to target sectors including beef, poultry, dairy, baking ingredients, animal feed, rice, pulses, seed potatoes, and livestock genetics.
Quarles says negotiating trade deals for the ag industry is different than most sectors.
“You are never going up against your foreign competitors by themselves,” he explains. “You are always going up against that foreign competitor and their government. That is why the USDA has such comprehensive trade programs. It’s to push back against a lot of that distorted market.”
He points to foreign subsidies, extreme tariffs, and nontariff barriers as protectionist ag policies used by other countries.
The National Potato Council estimates opening fresh potato market access in Japan could bring $150 million in annual exports for growers.
Some export promotion programs have expired as part of the funding lapse, including the Market Access Program (MAP), Foreign Market Development Program (FMDP), dairy export subsidies, and technical assistance for specialty crops.
The International Trade Representative’s Office’s government shutdown plans say it will keep a large portion of staff to prioritize high-priority trade work, including international trade negotiations and enforcement.
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