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NAFTA Talks to Continue, Optimism Increasing

6 years, 2 months ago AFBF

Talks to renegotiate the North American Free Trade Agreement are at a “much better point,” according to trade officials from Mexico. Speaking at the conclusion of the latest round of talks held in Canada, U.S. Trade Representative Robert Lighthizer said: "we finally began to discuss the core issues." All three sides agreed to language governing anti-corruption during the latest round, while making progress on customs and food sanitation issues. However, two of the biggest issues, auto trade and a sunset clause, remain. Some speculate that the trade agreement renegotiation effort will stretch into the upcoming Mexican election cycle, a timeline that negotiators had hoped to avoid. Farmers for Free Trade, a bipartisan campaign focusing on NAFTA, says it is "heartening" to see progress but notes that further delays create more uncertainty for U.S. farmers. Lighthizer said Monday that the U.S. is “committed to moving forward” with the renegotiation effort. Two more rounds are scheduled, one in Mexico next month, and a hopeful final round in Washington, D.C. in March.

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Trump Says U.S. Open to TPP, If Better Deal Negotiated

President Donald Trump has left the door open to rejoining the Trans-Pacific Partnership through comments in a recent speech. However, the now TPP 11 countries may not be as welcoming, forging ahead to sign an agreement in March. Addressing the World Economic Forum in Switzerland last week, Trump said of the TPP nations, the U.S. would consider negotiating with them “either individually or perhaps as a group if it is in the interest of all.” In an interview with CNBC, he was quoted as saying, “I would do TPP if we were able to make a substantially better deal.” The original TPP agreement was expected to be worth billions of dollars for U.S. agriculture. However, New Zealand Trade Minister David Parker points out that the U.S.’s negotiating position was “of course weakened” by its withdrawal a year ago from the original agreement. Further, there is currently little expectation that the U.S. would move to rejoin the TPP agreement.

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EPA Sends WOTUS Delay Rule to White House

The Environmental Protection Agency has sent a final rule to the White House that would prevent the Waters of the U.S. Rule from taking effect. The EPA rushed the rule to the White House because of the recent U.S. Supreme Court ruling placing the legal jurisdiction of the rule in federal district courts, not federal appeals courts, where a stay was issued against the original rule. The Supreme Court ruling will lift that delay, allowing WOTUS to go into effect in 37 states. EPA water chief Davis Ross told Politico the rushed delay rule would be finalized within a month. Farm groups, such as the American Farm Bureau Federation, have long opposed the Obama-era rule. During an event with AFBF members last year, EPA administrator Scott Pruitt said the EPA will bring more certainty in water regulation for farmers and ranchers through a repeal and replacement effort.

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U.S. Soy Losing Ground to Brazil in China

The U.S. is losing soybean market share to Brazil in China over protein. Reuters says soybean growers in the U.S. seeking higher-yielding crops is robbing the crop of protein content. A decline in protein levels make soybeans less valuable to the $400 billion feed industry in China A decade ago, the United States supplied 38 percent of soybeans to China, the world's top importer, compared to 34 percent from Brazil. Now, Brazil supplies 57 percent of Chinese imports compared to 31 from the United States, according to China's General Administration of Customs. The United Soybean Board is advocating that the industry takes protein content seriously. The industry group will spend $5.6 million in fiscal year 2018 on research and other efforts to boost protein, up from $3.7 million last year. USB director Jared Hagert says: "China needs soybeans, and we're at risk of becoming a residual supplier if we don't work on protein improvements.”

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Census of Agriculture Deadline Nears

Farmers and ranchers have less than a week to submit their information to the Department of Agriculture as part of the Census of Agriculture. USDA’s National Agricultural Statistics Service says producers should respond online at agcounts.usda.gov or by mail by February 5th. Agriculture Secretary Sonny Perdue says the Census, for farmers, is “their voice, their future, their opportunity,” while saying USDA needs to hear from all farmers and ranchers. Everyone who received the 2017 Census of Agriculture questionnaire is required to return it, even if they are not currently farming. The first few qualifying questions on the form will determine whether completing the entire questionnaire is necessary. After the deadline, USDA NASS will begin follow-up contact methods to collect responses.

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Secretary Perdue to Speak at Global Meat Conference This Summer 

Agriculture Secretary Sonny Perdue will speak at this summer’s World Meat Congress in Dallas, Texas. Taking place May 30th through June first, Perdue will address participants on Thursday morning, May 31st, during the “Global Politics of Food” session. The U.S. Meat Export Federation, the organization hosting the global event, announced the appearance by Perdue. USMEF CEO Emeritus Philip Seng says the event provides “an opportunity to showcase the U.S. agricultural model for industry leaders from across the globe.” Seng called Perdue a “champion for trade,” who can provide his insights on the Trump administration’s philosophy on trade and its approach to trade agreement negotiations. The World Meat Congress is a biennial event, with the 2018 theme being “Trusting in Trade.” This is the first time in the history of the more than 20-year-old event that it will be held in the United States.

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