U.S. soybean shippers support free trade if other countries cooperate

U.S. soybean shippers support free trade if other countries cooperate

   U.S. soybean shippers affirmed their support for liberalized global trade during a House Agriculture Committee hearing Wednesday, but warned the playing field must be leveled with other countries producing the same commodity.

   “We are concerned that, if countries are able to protect all or most of their sensitive import commodities from meaningful tariff cuts, we won’t see the expansion of markets for soybeans, soybean meal and livestock products needed to justify accepting substantial reductions in domestic support and changes in our export credit program that will dramatically decrease its effectiveness,” testified Bart Ruth, a board member of the American Soybean Association, before the House committee.

   Ruth warned that countries such as Brazil, a large producer and exporter of soybeans, should not be allowed to exempt themselves from market access commitments or have unlimited ability to implement trade-distorting domestic support and export policies.

   He also expressed the industry group’s concern about efforts to eliminate non-emergency food aid provided under P.L. 480 Title I and other programs. “We recommend that any disciplines on food aid be considered separately from reforms in export-related programs, and urge that food and experts be included in future negotiations,” Ruth said.

   In addition, U.S. soybean shippers are worried that the European Union may ignore its requirements under the 1992 Blair House Agreement of the Uruguay Round. The EU agreed to restrict subsidized oilseed. “The United States must be prepared to aggressively challenge the EU if it breaches its obligations,” Ruth said.

   Agreement on the agriculture framework for the World Trade Organization’s Doha Development Agenda will be sought at the mini-ministerial meeting in late June.

   “U.S. farmers need to compete for these expanding markets, and to do so, we need to bring down tariffs on soy-related products in importing countries, and prevent their replacement with non-tariff barriers,” Ruth said.

   Since the 1970s, the United States has exported half of each year’s soybean crop. Soybean and soy product exports are currently valued at $8 billion to $10 billion a year.