Farmers, Processors Say NTB, Tariffs Need to Come Down
Rep. Dusty Johnson, R-S.D., the top Republican on the House Agriculture subcommittee that covers trade, told Farmers For Free Trade that ag exporters "want China to live up to their commitments, but we don't want to put all our eggs in one basket."
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Johnson, who also talked about the effect sanctions on Russia will have on the fertilizer market, said during a webinar March 23: "We need to believe in free trade. We need to do even more with our partners. We do not want China and Russia to have asymmetrical authority over our ability to raise food." So, he said, he expects Congress members from both parties will be talking with about how we should be lowering market barriers in India, Japan and the United Kingdom.
Chris Hoeger, vice president of procurement for Prairie Farms Dairy in southern Illinois, said during the webinar that free trade has allowed for about $17 billion in sales for U.S. dairy farmers. He said that more than 17% of dairy solids are exported, and that if there were more free trade deals inked, that could reach 20%.
He said competitors in the EU and New Zealand are constantly adding free trade agreements, which puts American exporters at a disadvantage. He called for the administration to push for fast-track legislation to pass Congress so negotiations can restart with the U.K.
Hoeger said there are ways to improve access for American dairy exports outside of FTAs. The Biden administration has been reluctant to pursue FTAs. He said he's heard that U.S. officials are trying to convince Indonesia, which he said is a major dairy purchaser, to lower its tariffs on dairy products across the board. While that would not give the U.S. preferential treatment, he said it could be helpful.
Jane DeMarchi, president of the North American Millers' Association, said that tariffs on wheat or flour are not the primary problem for American producers, so Trade and Investment Framework Agreements (TIFA) could work to achieve their goals.
She said there are more phytosanitary restrictions on these products that prevent exports. "We anticipate that is going to continue to get worse in the coming years," she said.
Karen Reece, owner of Eskimo Cold Storage in Gainesville, Georgia, said during the webinar that 65% of her business is exports, to Cuba, the West Indies, China, Taiwan, Singapore, Angola, the Bahamas, Kazakhstan, Chile, Iraq, the Phillipines and other countries. Foreign countries' policies aren't as much of a problem for her business as domestic workforce shortages. She said her firm has provided meals and snacks, improved benefits, raised its hourly wages and raised its attendance bonuses, and it's still "very, very hard to retain" the workforce she needs.
In addition to tariffs and regulation, the issue of not being able to get on outbound ships came up in the webinar. Johnson is one of the lead sponsors of the Ocean Shipping Reform Act, which is part of the House China package and has passed out of committee in the Senate. He gave the bill a more than 80% chance of becoming law in 2022.
“It’s hard to go higher because Congress is so dysfunctional,” he said.