State Department Official Sees Agriculture Trade Opportunities in Asia Pacific
There are particular opportunities in the Asia Pacific region for American agricultural sector trade, said Robert Hormats, Under Secretary of State for Economic Growth, Energy, and the Environment, in April 18 testimony to the Senate Committee on Finance, Subcommittee on International Trade, Customs, and Global Competitiveness. "By globalizing our agricultural sector, we are able to tap into larger markets and grow our exports," he said.
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The U.S. agricultural sector will continue to benefit from Asia's economic growth, as a new generation of consumers comes of age, and dramatically grows in size, in the region, Hormats said. He said three initiatives, the Asia Pacific Economic Cooperation (APEC), the Korea-U.S. Free Trade Agreement (KORUS), and the Trans Pacific Partnership (TPP), are critical to advancing U.S. economic interests and benefitting U.S. agricultural exports.
Among the progress he cited in his written testimony:
- The Indonesian government established a science-based regulatory system and embraced the potential of agricultural biotechnology.
- State is working to help Vietnam establish a biotech regulatory framework.
- Russia could be "an enormous opportunity for American agriculture," though Hill action is needed to eliminate some limits on sales to Russia.
- The Korea-U.S. Free Trade Agreement (KORUS), which took effect March 15, "is a clear example of the kind of high quality FTA we want to promote" and "will directly benefit Pacific Northwest food producers. Korean tariffs of 24 percent on U.S. fresh cherries will be eliminated immediately, he said, as will tariffs of 15% on wine.
- The Trans-Pacific Partnership (TPP) is aiming at improving agricultural market access and easing regulations affecting agriculture, such as sanitary and phytosanitary measures, transparency, and science-based risk analysis with their Chinese counterparts at the highest levels.
- Asynchronous approvals are an issue with China. The Chinese regulatory process does not allow for review of genetically engineered products developed in the U.S. until after they're approved by U.S. regulators. That adds 18-24 months to the commercialization process, he said.