|
Our nation’s farmers are the most productive in the world. Farmers in my agriculture-rich district in Northern California and across the United States are more efficient with their land and resources than ever before. Because they are producing more than Americans can possibly consume, expanding export opportunities is essential to their continued prosperity.
Expanded agricultural trade brings positive economic effects. Our trade agreements not only reduce or eliminate agricultural tariffs, but they also are vital tools for eliminating unscientific standards and other non-tariff barriers that discriminate against U.S. exports. Since expanded trade with Canada and Mexico was approved in 1994, our exports of agricultural products to these countries have increased to over $25 billion and now represent 30 percent of total U.S. agricultural exports. U.S. agriculture exports to Central America have risen 18 percent since enactment of that pact and by nearly 90 percent to Australia post-agreement.
Unfortunately, our farmers still face unfair trade barriers in world markets where we haven’t negotiated fair trade agreements. The Doha Round presents enormous opportunity to reduce barriers and expand market access for U.S. agricultural products on a global scale. The average applied tariff on U.S. agriculture exports is nearly 17 percent, which is more than three times the average tariff on exports of manufactured products. Tariffs are even higher in some of the largest markets. For instance, U.S. agricultural exports face an average 30 percent tariff when entering the EU and a tariff of nearly 59 percent in Japan, dwarfing the comparable U.S. tariffs. The Doha Round result that the U.S. Trade Representative is seeking would significantly expand U.S. export opportunities in agriculture trade.
Furthermore, trade agreements create U.S. agriculture jobs. According to the Department of Agriculture, every $1 billion of agricultural exports generates 11,800 American jobs. The American Farm Bureau Federation estimates that full implementation of the South Korea agreement, for example, would result in a $1.65 billion increase of U.S. agriculture exports. So approving and implementing that agreement could create thousands of jobs. Conversely, failing to pass it would represent a tremendous and unnecessary missed opportunity.
Some of our closest trading partners enjoy virtually duty-free access to the U.S. market, while U.S. agricultural exporters face tariff barriers selling into their markets. We must level the playing field for our farmers, and our fair trade agreements — which move beyond one-way preferences into full partnership and reciprocal commitments — are the best way to accomplish this goal. Take, for example, the Colombia agreement, where our farmers currently face an average tariff of 20 percent. The fair trade agreement would make 93 percent of American agricultural exports to Colombia duty-free within 10 years, which would increase our farm exports by nearly $700 million annually. Under the Panama agreement, U.S. exports of high-quality beef, pork variety meats, soybeans, cotton, wheat and most fresh fruits, among others, will receive immediate duty-free treatment. Other agricultural products will benefit from expanded market access through new, liberalizing tariff-rate quotas.
We simply cannot stand still. Our competitors are concluding agreements that will provide their farmers and ranchers with an advantage over us. Canada has just concluded its trade negotiations with Colombia. The stage is now set for Colombians to buy wheat and vegetables from Canada, instead of from us. The EU is about to conclude its negotiations with Colombia as well, and Europe’s pork, cheese and wine will then flow into Colombia, while ours are left out. Our challenge soon won’t be expanding market access, but rather maintaining it. Unfortunately, the Democratic majority’s recent embrace of economic isolationism threatens to place our farmers at a major competitive disadvantage. Now more than ever, Speaker Nancy Pelosi (D-Calif.) must immediately allow a vote on the U.S.-Colombia agreement.
Our nation’s agricultural sector has long understood the importance of open markets. For much of our history, U.S. farmers have expressed deep concern that protectionist policies here at home would provoke nations abroad to retaliate by putting into place their own tariffs to keep U.S. commodities out. U.S. agriculture stands to lose market access when our nation ventures down an isolationist path. Congress must not ignore the importance of expanded trade to the prosperity of U.S. farmers and ranchers.
Herger is the ranking member of the Ways and Means Subcommittee on Trade. |