6 years, 6 months ago AFBF
Trade Expert: U.S. is Setting Up NAFTA for Failure
Trade experts in Canada speculate President Donald Trump may be arranging the North American Free Trade Agreement negotiations to allow the U.S. to walk away from the trade deal. The Canadian Press news agency says a consensus is growing that a series of untenable U.S. bargaining positions is part of a plan by Trump to lay the groundwork so he can walk away from the trade pact. The fourth round of NAFTA talks are underway this week, with some speculating the introduction of agricultural issues in the process. However, the Buy American proposal that would limit Canadian and Mexican access to U.S. procurement projects, while the U.S. seeks greater access to government projects by its trade partners, seems to be a sticking point. That comes with other hard issues still on the horizon, including dairy, auto parts, the dispute resolution system and the U.S. push for a review of NAFTA every five years. Peter Clark, an Ottawa-based international trade strategist who was involved in the original NAFTA talks, said the U.S. behavior is a “vivid and unprecedented example of how not to negotiate.” He called it a tactic designed to ensure failure.
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Conaway: NAFTA Too Important to Screw up
Following a weekend meeting in Canada, House Agriculture Chairman Mike Conaway said the North American Free Trade Agreement is "too important to screw up." Conaway took part in a delegation of House members that focused on agricultural trade in a discussion with Canadian officials before this week's round of NAFTA talks. In a statement, Conaway said the goal of the meeting was to ensure Canada understand that U.S. agriculture “has a keen interest in getting NAFTA done and done right." Conaway said U.S. agriculture would continue "to stay at the negotiators elbow" throughout the process. Conaway last week echoed comments from Agriculture Secretary Sonny Perdue that the NAFTA negotiations were not moving fast enough. Representative David Rouzer (ROU-zer) of North Carolina joined Conaway in Canada, saying the meeting gave the U.S. an "opportunity to demonstrate the importance of the deal for U.S. agriculture."
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Mexico, Canada, Could Seek Dairy Access to U.S.
Mexico and Canada may have little to ask for when it comes to ag trade barriers with the United States, but they could seek further dairy access. Former chief agriculture trade negotiator, Darci Vetter, told Politico since both Mexico and Canada have long wanted U.S. Food and Drug Administration recognition to sell Grade A dairy products like fresh yogurt and fresh cheeses in the U.S., there could be pressure to allow those products in. The U.S. has already eliminated most agricultural tariffs through the NAFTA framework, except for dairy and sugar. However, the U.S. and Mexico recently struck a sugar deal that takes care of most immediate concerns, while Canada continues to want to export more refined sugar to the United States. Vetter says Canada wants to import raw sugar from other countries around the world, refine it, and have it count as Canadian when exported to the U.S. so it can enter duty-free.
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Censky, McKinney, Sworn in at USDA
Agriculture Secretary Sonny Perdue welcomed two leaders to his staff at the Department of Agriculture Tuesday. Perdue swore in Steve Censky as Deputy Secretary of Agriculture, and Ted McKinney as USDA’s new Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs. Perdue says Censky and McKinney are “two experienced, prepared, and capable nominees,” who will provide steady leadership at USDA. With the ceremony, Censky officially departed his job as CEO of the American Soybean Association after 23 years, 21 of which he spent as head of the organization. ASA President Ron Moore said that due to the swearing-in of Censky, ASA has officially opened the search for its next CEO. The Indiana Department of Agriculture named its deputy director as interim director last week, following the Senate confirmation of McKinney to the USDA post.
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More Than 1,000 Stations Offering E15 in the U.S.
Growth Energy says more than 1,000 fuel stations throughout the U.S. are now offering E15 fuels, more than doubling the number of stations from the same time last year. Growth in the availability of the 15 percent ethanol blend is “a testament to the value E15 brings to fuel retailers and consumers,” according to Growth Energy CEO Emily Skor. Growth Energy calls E15 a fuel that is clean and cool burning, and works well for cars model 2001 and newer and typically saves up to 10 cents per gallon. Leading retailers including Casey’s, Cenex, Family Express, Kum & Go, and Kwik Trip, among others. In total, there are 1,039 locations across the U.S. offering E15 fuels. The organization says many of those are in major metropolitan areas including Atlanta, Charlotte, Chicago, Dallas, Houston, and San Antonio.
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California Wildfires Impacting Wine Industry
Wildfires have ravaged California wine country, with more threats yet to come. Crews are fighting 17 wildfires that destroyed at least 1,500 homes, according to the Washington Post. The fires, as of Tuesday, had burned more than 73,000 acres in Northern California, nearly all of those in Sonoma and Napa counties, the heartland of the state’s wine industry. There are more than 100,000 acres of wine grapes planted in the two counties, which are home to more than 650 wineries, according to the Wine Institute, which represents the industry in the state. Witness accounts suggested that damage to the wine industry could be significant, especially if the fires continue to burn in the days ahead. About 13 percent of California’s wines are made in the two counties, and the Wine Institute estimates that the industry generates more than $55 billion in economic activity in California, and twice as much nationally, each year.
