Posted by Jared Hill on January 23, 2015

The new year has brought with it a flurry of activity on international trade issues important to the agriculture industry; below recaps recent developments in several areas.

Trade Promotion Authority

In the State of the Union Address, President Obama called for Congress to give him fast-track authority, also referred to as trade promotion authority (TPA), so he can complete trade pacts in Asia and with the European Union. "Ninety-five percent of the world's customers live outside our borders, and we can't close ourselves off from those opportunities," said Obama.

TPA allows a president to enter into trade pacts with other nations and protect the agreement from amendment when it comes before congress for approval. Many in the business and agriculture community praised the president's highlight of TPA during the state of the union - although trade policy experts are waiting for the president to twist a little harder on the arms of congressional Democrats to support TPA legislation. However, it is more than just democratic members of Congress who need to be won over. Many House Republicans oppose giving trade promotion authority to the president over concerns it cedes too much authority to the president.

In a sign of just how important TPA is to the agriculture and business industries, more than 200 businesses and associations, including NGFA, recently sent a letter to members of Congress urging passage of TPA early in 2015.

For more information, see the complete TPA letter.

Country of Origin Labeling

The agriculture and business industries continue to deal with the fall out over the United States losing the latest round at the World Trade Organization (WTO) over the country-of-origin labeling (COOL) regulations issued by the U.S. Department of Agriculture.

The complaining countries, Canada and Mexico, will obtain the ability to retaliate against U.S. products if the latest WTO compliance panel decision is validated - meaning certain products shipped to those countries would face retaliatory tariffs. This has concerned a broad cross-section of companies, which was reflected in a recent letter sent to Congress by businesses and associations, including NGFA, requesting a fix to the COOL issue.

According to the letter, "While Congress has acknowledged the on-going problem and addressed the need for finding a solution in the (fiscal year) 2015 funding package passed in December, there is still an immediate need for corrective action by Congress. Otherwise, serious damage to U.S. exports should be expected to begin upon a WTO final determination of U.S. non-compliance."

For more information, see the complete COOL letter.

Cuba

After cutting ties more than 50 years ago, the Obama administration recently announced it would reestablish diplomatic ties with Cuba. Many agricultural groups would like to see the United States normalize trade relations with the communist country in addition to reestablishing the diplomatic ties. While U.S. agricultural products can be shipped into Cuba currently, there are financing restrictions that make it difficult to do business, and put U.S. agricultural exporters at a disadvantage relative to exporters from other nations.

The NGFA has joined a coalition that supports removing trade restrictions with Cuba.

For more information, see coalition press release.
Jared Hill

Director of Legislative Affairs Jared Hill leads the NGFA's legislative efforts on a wide range of issues important to the grain and feed industry. He also serves as NGFA's principal staff liaison to the U.S. Trade Representative and the U.S. Department of Agriculture Foreign Agricultural Service. In addition, he manages the grain and feed political action committee.

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