6 years, 8 months ago American Farm Bureau Federation
Perdue: Japan Tariff Increase Could Increase Trade Deficit
Agriculture Secretary Sonny Perdue Friday voiced concerns that Japan’s tariff increase on U.S. frozen beef could increase the U.S. overall trade deficit with Japan. He says the potential deficit increase would harm the U.S. bilateral trade relationship with Japan on agricultural products. Japan announced that the increase in frozen beef imports from the U.S. in the first quarter of the Japanese fiscal year triggered a safeguard, resulting in an automatic increase to Japan's tariff. The tariffs will begin August first, and last through March 31st, 2018. Perdue says he has asked representatives of Japan's government to "to make every effort" to address his concerns and the harm that could result to consumers from the U.S. and Japan.
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Japan Beef Tariff Increase Highlights Need for Trade Agreement
The National Cattlemen’s Beef Association says the increased tariff on beef imports to Japan underscores the “urgent need” for a bilateral trade agreement between Japan and the United States. Japan announced it would increase the tariff on frozen beef imports from 38.5 percent to 50 percent until April 2018. NCBA President Craig Uden says the tariffs “unfairly distort the market and punish both producers and consumers. Japan was the top export market for U.S. beef, valued at $1.5 billion in 2016. According to data compiled by the U.S. Meat Export Federation, first quarter U.S. beef sales to Japan increased 42 percent over 2016. In addition to the United States, the 50 percent safeguard tariff also applies to imports from Canada, New Zealand, and other countries that do not have a free trade agreement with Japan.
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Trucks Carry Majority of NAFTA Freight
Trucks carry more freight between the U.S., Mexico and Canada under the North American Free Trade Agreement than railcars. The Department of Transportation's Bureau of Transportation Statistics last week reported that trucks carried 63.4 percent of NAFTA freight between May 2016 and May 2017. U.S.-NAFTA freight totaled $98.2 billion during that time, with trucks accounting for $32.2 billion of the $53.5 billion of imports and $30.1 billion of the $44.7 billion of exports. Vehicles and vehicle parts were noted as the top products being moved between the U.S., Canada and Mexico. Those statistics come just weeks before the Trump administration is set to renegotiate NAFTA, which includes the top trading partners for U.S. agriculture.
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Farmers Union Relieved by Failed ACA Repeal Vote
The National Farmers Union released a statement Friday announcing “relief” by the failed Senate vote on a so-called skinny repeal of parts of the Affordable Care Act. NFU says the bill would have risked access to health care for 16 million people and marketplace stability. Farmers Union President Roger Johnson says rural residents, including farmers and ranchers, need and desire a solution to rising premiums and an unstable marketplace. However, of the skinny repeal, he says the bill would have made matters worse for rural residents. Johnson says the organization now looks forward to working towards a bipartisan solution that improves access to affordable, high-quality health care for family farmers, ranchers and rural Americans.
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Grains Council Meeting in Vancouver
The U.S. Grains Council summer meeting is getting underway this week in Vancouver, Washington. Starting today (Monday) and lasting through August 2nd, the meeting includes the USGC 57th Annual Board of Delegates Meeting. More than 300 Grains Council members, delegates and guest are taking part in the meeting. The meeting schedule will offer deep dives into emerging ethanol opportunities, China’s growing influence in global trade and the U.S. approach to trade policy negotiations, including the coming modernization of the North American Free Trade Agreement. Advisory teams for USGC are also meeting to track progress toward the implementation of the 2017 Unified Export Strategy. More information is available at Grains dot org (www.grains.org).
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Wind Power Advancing in U.S.
A new report from the American Wind Energy Association finds 357 megawatts in new wind energy projects were brought online during the second quarter of the year. Nationally, the U.S. now has 84,405 megawatts of installed wind power capacity, with more than 52,000 commercial wind turbines currently operating in 41 states plus Guam and Puerto. Another 25,819 megawatts are under construction or in advanced development, according to the U.S. Wind Industry Second Quarter 2017 Market Report. Nearly 80 percent of current wind turbine construction and advanced development activity is found in the Midwest, Texas and the Mountain West, as America's rich wind resources draw even more business to heartland states.
