TRADE POLICY AND THE WTO

ASA Position

ASA supports negotiation of trade agreements that significantly improve access to foreign markets for U.S. soy and livestock products. We oppose legislation or other measures that are protectionist, and that encourage our trading partners to take similar actions. We support aggressive enforcement of existing agreements when importing countries create non-tariff trade barriers, including sanitary and phytosanitary measures, which are not justified by sound science.

We did not support the framework for World Trade Organization (WTO) negotiations agreed to in July 2008, which did not offer the possibility of meaningful improvement in agricultural market access commensurate with the concessions the U.S. was prepared to make in reducing trade-distorting domestic support. We urge the Administration to not resume the Doha negotiations until a more promising framework is possible. We urge early renewal of Trade Promotion Authority (TPA) so the U.S. can engage countries that are important markets for soy and livestock products in Free Trade Agreement (FTA) negotiations.

Background

U.S. soybean producers depend on exports of soybeans, soybean meal, and livestock products for one-half of their annual production. ASA has supported every trade agreement submitted to Congress. However, there has been an increasing incidence of countries undercutting their commitments under existing agreements and restricting trade thorough unjustified allegations on sanitary and phytosanitary issues. Existing agreements must be enforced, and future agreements must ensure that these non-tariff barriers are addressed before negotiations are finalized.

The July 2008 WTO framework agreement would require the U.S. to reduce the limit on trade-distorting domestic support from $49 billion to $13-$14 billion per year. In exchange, developed importing countries could restrict tariff reductions on a substantial number of Sensitive Products, and developing countries could completely eliminate tariff reductions on Special Products, or use a Special Safeguard Mechanism to suspend imports when they exceed recent average levels. The imbalance of this framework forced ASA and other agricultural organizations to call for suspension of negotiations on the basis that “no agreement is better than a bad agreement.”

Renewal of TPA is critical if the U.S. is going to remain competitive with other major exporting countries. There are currently over 350 FTA’s under negotiation by the European Union, Brazil, Argentina, and other exporters with importing countries that are important U.S. markets. TPA renewal is vital to preserving our access to these key markets.