There’s been a lot of talk about trade lately, what with tariff threats and renegotiations going on for trade agreements. Last week included new tariffs from China, some news on possible Trans-Pacific Partnership (TPP) talks, and heartening beef export data.
China announced April 18 a 179 percent tariff on U.S. sorghum imports. The Chinese Ministry of Commerce claimed the tariff was in response to U.S. dumping of sorghum into China, a claim the U.S. flatly refuses.
“The international grain market is about the freest market there is, and it is ludicrous to even mention ‘dumping,’ because China can buy product from anywhere they choose,” said U.S. Secretary of Agriculture Sonny Perdue in a statement shortly after the news broke from China.
“This is clearly a political decision by the Chinese and we reject their premise.”
The National Sorghum Producers expressed disappointment over the decision, claiming that it had submitted “several thousand pages of data demonstrating conclusively that U.S. sorghum is neither dumped nor causing any injury to China.”
The group opined that the tariff “reflects a broader trade fight in which U.S. sorghum farmers are the victim, not the cause. And U.S. sorghum farmers should not be paying the price for this larger fight.”
The new sorghum tariff adds to the Chinese tariffs on U.S. pork among other agricultural products. Other tariffs on a wider range of U.S. agricultural goods are still being threatened.
Trans-Pacific Partnership
After President Donald Trump pulled the U.S. out of the TPP in January 2017, the remaining countries continued on without the U.S. In March 2018, those 11 countries signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP), or TPP 11. The new agreement includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
On April 12, it seemed like Trump was interested in rejoining this renewed TPP by directing Larry Kudlow, director of the National Economic Council, and Robert Lighthizer, U.S. trade representative, to negotiate entry into the new agreement. But in less than a week, Trump seemed to reverse course, tweeting on April 17:
“While Japan and South Korea would like us to go back into TPP, I don’t like the deal for the United States. Too many contingencies and no way to get out if it doesn’t work. Bilateral deals are far more efficient, profitable and better for OUR workers. Look how bad [World Trade Organization] is to U.S.”
Export success
Recent beef export data—released by USDA and compiled by the U.S. Meat Export Federation (USMEF)—showed that 2018’s export strength continued in February. Beef export volume in February was 11 percent higher than in February 2017 at 100,593 metric tons and was up 18 percent by value at $599.8 million. Exports accounted for 13.6 percent of total beef production for the month.
“Red meat exports are off to a strong start in 2018 and continue to deliver excellent returns for U.S. producers,” noted USMEF President and CEO Dan Halstrom.
“The outstanding level of export value per head slaughtered is especially encouraging at a time in which U.S. meat production is high and the trade climate is somewhat volatile. Through all the uncertainty, international customers remain very committed to U.S. pork and beef.”
Export data for April will likely show continued improvement considering the Japanese safeguard tariffs on frozen beef items from the U.S. on April 1. Japan continues to be the largest consumer of U.S. beef. The country’s imports of U.S. beef have remained relatively strong even while the safeguard tariff has been in place.
The April export data will be released in its entirety in about two months. — WLJ
