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Agricultural Trade Issues in the 106th Congress
Agricultural interests have been following trade policy developments against a backdrop of weak foreign demand and large world supplies of agricultural products. The U.S. Department of Agriculture reports that the value of U.S. agricultural exports fell between FY1996 (a record year) and FY1999 by almost $11 billion. USDA forecasts agricultural exports at $50.5 billion in FY2000 and $51.5 billion in FY2001. However, the projected agricultural trade surpluses for those years, of $11.5 billion and $12 billion, would be less than half the FY1996 surplus of $27.2 billion. Many agricultural groups and their supporters in Congress believe that the sector's future prosperity depends upon such U.S. trade policies as: 1) encouraging China's entry into the World Trade Organization (WTO), with its binding rules and responsibilities; 2) exempting agriculture from U.S. unilateral economic sanctions; 3) fully using export and food aid programs; and 4) aggressively battling foreign-imposed barriers to the movement of U.S. farm products. A few U.S. farm groups are wary of such approaches.
Agricultural Trade in the 106th Congress: A Review of Issues
The 106th Congress considered a number of trade policy developments against a backdrop of weak foreign demand and large world supplies of agricultural commodities. The U.S. Department of Agriculture reports that the value of U.S. agricultural exports fell between FY1996 (a record year) and FY1999 by almost $11 billion, to $49.2 billion. Agricultural exports did climb back to $50.9 billion in FY2000, and are now projected at $53 billion in FY2001. However, the pace of recovery concerned many agricultural groups and their supporters in Congress. Although they recognize that many world economic, farm production, political, and weather factors influence exports, many of these groups believe that the agricultural sector's future prosperity also depends upon such U.S. trade policies as: 1) encouraging China's entry into the World Trade Organization (WTO), with its binding rules and responsibilities; 2) exempting agricultural exports from U.S. unilateral economic sanctions; 3) fully using export and food aid programs; and 4) aggressively battling foreign-imposed barriers to the movement of U.S. farm products. A few U.S. farm groups are wary of such approaches.
Agriculture in Pending U.S. Free Trade Agreements with Colombia, Panama, and South Korea
The 111th Congress in coming months might take up free trade agreements (FTAs) signed by the Bush Administration with Colombia, Panama, and South Korea under trade promotion authority, or fast-track rules, designed to expedite congressional consideration of these agreements. Accordingly, agriculture as covered in each pending trade agreement is examined in this report in the order that Congress likely will take up these agreements, based upon statements made to date by Obama Administration officials and Members of Congress.
Agriculture: U.S.-China Trade Issues
With China’s entry into the World Trade Organization (WTO) in December 2001, U.S. agricultural interests were hopeful that longstanding barriers to trade with that vast and growing market would begin to fall. However, critics charge that China is failing to honor commitments to open its markets, affecting U.S. exports of grains, oilseeds, meat and poultry, and other products. U.S. agriculture and trade officials have been working to resolve these differences.
Agriculture and China's Accession to the World Trade Organization
The prospect of future growth in demand for agricultural products makes China’s accession to the World Trade Organization (WTO) an important issue for the U.S. agricultural sector. Most agricultural interest groups strongly support China’s entry into the WTO, because they think it will increase U.S. agricultural exports and enhance farm income. In the 107th Congress, attention is focused on China’s final WTO accession negotiations where differences over agriculture have become an issue.
Food and Agricultural Imports from China
This report first provides information on the most recent Chinese-related food safety concern, the use of melamine in dairy ingredients. Following this section, the report provides data on U.S.-China trends in agricultural trade, examines U.S. programs to monitor the safety of imports, and reports on other recent Chinese food safety developments. It concludes with a brief discussion of the congressional role.
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