Latest News From Trade

AgriTalk has extended an invitation to all the 2024 presidential hopefuls to join Host Chip Flory and answer five standard questions about what they would focus on once in office.

While the U.S. and EU aim to make progress during an upcoming summit, reaching a final agreement is uncertain. This issue has significant implications for U.S./EU ties, climate goals, and geopolitics.

China's Commerce minister expressed concerns over trade and tech restrictions to U.S. Senate Majority Leader this week. That's as the U.S. Commerce Department added 42 more Chinese companies to the export blacklist.

As brent crude futures soar toward $100, it's creating a new battle in the Federal Reserve's effort to fight inflation. One money manager warns another rate hike is likely. 

China's GDP growth could possibly drop lower than the U.S. this year. In fact, fewer and fewer sectors are healthy, and only then by direct government intervention.

USDA on Thursday lowered expectations for both ag exports and imports in FY 2023. The export decline is linked to corn and wheat, while the import decline is correlated with easing prices.

“Mexico’s decree, which runs counter to scientific findings and is in direct violation of USMCA, is negatively impacting American corn growers,” said Tom Haag, NCGA president.

The July Ag Economists' Monthly Monitor showed several key changes from June including a bigger cut to corn and soybean yields, a drop in corn and soybean prices and more bullish cattle and hog prices.

The leaders also drafted a proposed legislation earlier this month that promises treaty-like benefits for businesses seeking cross-border investment opportunities via the tax code.

This slump, deeper than May's 7.5% drop, represents the largest decline since February 2020.

During a bilateral meeting on Thursday, U.S. Trade Representative Katherine Tai discussed with Mexico's Secretary of Economy Tatiana Clouthier various issues concerning energy and biotech corn.

Representatives from the U.S., Mexico and Canada will meet in Cancun, Mexico this week to discuss a series of disputes, including Mexican energy and biotech policies and Canadian dairy barriers.

Beijing on Monday announced export controls on gallium and germanium. Now the Biden administration is set to restrict Chinese companies’ access to U.S. cloud-computing services that use AI chips.

The Ag Economists’ Monthly Monitor is a new survey of nearly 50 economists. Most ag economists agree the next 12 months could produce more financial pressure for agriculture, but their views vary depending on commodity.

The U.S. and China have reportedly made “progress” and agreed to stabilize their relationship, but no major breakthroughs were outlined during the two-day meeting between U.S. and China high-ranking officials.

Over the 29 years of free trade, U.S. ag exports to Mexico increased both in terms of volume and value, although there were some years where growth was not positive.

While Ohio pig farmers Phillip Hord and Jessica Campbell’s operations may look different, driving demand is where their paths intersect. By bringing a new flavor to the farm, the producers are also driving pork demand.

The bright spot for the U.S. pork industry is currently pork exports, with U.S. Meat Export Federation (USMEF) reporting another strong pork export performance in April citing broad-based growth to several countries.

“We fundamentally disagree with the position Mexico has taken on the issue of biotechnology, which has been proven to be safe for decades,” said Tom Vilsack, USDA secretary.

China's exports to Russia reached a record high in April, amounting to $9.6 billion.

Exports rose 2.1% in March from the prior month to a seasonally adjusted $256.2 billion while imports declined 0.3% to $320.4 billion, the Commerce Department said.

Currently, foreign meat that is processed in U.S. plants can be labeled “Product of USA.”  Arun Alexander, Canada’s deputy ambassador, isn't convinced this is a good practice.

Non-tariff barriers “are real and can be more significant hurdles than tariffs,” U.S. Trade Representative Katherine Tai says.

While Tai has faced strong criticism about a lack of new trade agreements being pursued, she claimed this week that the U.S. is “nearing a consensus on the need to do things differently.”

Former President Donald Trump placed tariffs on more than $300 billion in Chinese goods during his presidency, raising costs for American companies, according to the ITC.

"It would be a lost opportunity if we just sit on the sidelines and watch other countries engage while the playing field continues to tilt against us," said Rep. Smith (R-Neb.).

"In this current situation, the traditional approach to free trade agreements — which isn't just tariff cuts, but that they do tariff cuts on a fully comprehensive basis — isn't what we need right now,” Tai says.

“If California were to win this Supreme Court case, there’s nothing stopping the state from saying, for example, you can only sell corn in California if it’s harvested with an electric combine,” Dillard says.

Pork producers are working in an increasingly challenging environment. The headwinds are bigger than any single producer can tackle, but everyone coming together can impact the industry’s ability to shape policy.

As the debate heats up, here’s a breakdown of what National Pork Producers Council (NPPC) looks to push on the 2023 farm bill negotiating table.

“America's pork producers stand ready to back government efforts to maintain, diversify, and expand additional export markets for U.S. ag," NPPC said in a press release.

Reps. Dusty Johnson and Jim Costa on Tuesday introduced the Safer Highways and Increased Performance for Interstate Trucking (SHIP IT) Act to expand the trucking workforce and offer flexibility in times of need.

If the nation’s debt hits $31.4 trillion—it’s on track to do so by this Thurs.—the Treasury will need to take “extraordinary measures” to help pay the government's operations and ward off a historic default.

Export tariffs on aluminum and aluminum alloys will be raised. The current import tariff will stay on seven types of coal until March 31, with tariffs adopted for most favored nations from April 1.

The Senate on Wednesday confirmed Alexis Taylor for Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs. According to Taylor, her priorities include addressing export markets and food insecurity.

Government officials asked U.S. Trade Rep. Katherine Tai to capitalize on the success of the USMCA and expand relations in the Western Hemisphere. 

The Fertilizer Institute applauded the passage of the legislation, which it dubbed an “integral” component of the fertilizer distribution system.

John Phipps has noticed more unsettling problems for the second-largest nation to the point that despite their skills and accomplishment, he thinks China is heading for trouble. He explains why in John's World.

Europeans argue that the act is a beggar-thy-neighbor scheme designed to lure investors away from Europe, just as the region's economy teeters on the verge of recession.

Vilsack urged Mexico to "find a way forward" and said that if Mexico's plans went unchanged, the U.S. government would be forced to consider all options, including legal action under the USMCA.

China moved to close parks, malls and museums on Tues. as COVID-19 cases hit near-record levels. Lockdowns follow reports that, days before COP27, Xi sent policy and business advisers to New York to meet U.S. executives.

Unions and railroads are back at the negotiating table. By law, Congress can intervene to impose an agreement if the two sides remain deadlocked. However, one union is now on schedule to strike Dec. 5.

Congressmen who penned the Ocean Shipping Reform Act of 2022 are calling on the Federal Maritime Commission to mend the gap and provide "reasonable opportunities" for U.S. exporters to get their goods to foreign markets.

“In the last 2,500 years, every Chinese government that has fallen, has fallen over food,” says Kuehl, Armada chief economist. “They need those import markets—be it from the U.S, Canada, Brazil or Australia."

Global diesel and distillate fuel stocks have fallen to dangerous levels and the U.S. has been exporting a lot of diesel to Europe and Latin America, but now things are changing.

“If California were to win this Supreme Court case, there’s nothing stopping the state from saying, for example, you can only sell corn in California if it’s harvested with an electric combine,” says Dillard.

Have the Pacific Coast port bottleneck issues been resolved, or moved somewhere else? The East Coast may now be carrying the burden.

Empty dinner plates can quickly translate to lack of world peace. Just ask Sen. Ernst, who gave a political rundown of food security as national security at Iowa State University last week.

Do tariffs fuel inflation? John Phipps's Customer Support segment explains why economists have struggled to come up with estimates of economic effects due to lingering COVID influence on world business.

“We have tried to work constructively with the Mexican government to address these concerns, but, unfortunately, U.S. companies continue to face unfair treatment in Mexico," said Ambassador Tai.