SPONSORED:

Democratic senators rip Trump administration's trade aid to foreign firms, demand a halt

Democratic senators rip Trump administration's trade aid to foreign firms, demand a halt
© Greg Nash

A group of Senate Democrats is pushing the Agriculture Department (USDA) to halt trade-related aid to foreign-owned corporations as the Trump administration faces backlash for more than $60 million in payments to a Brazilian meatpacking firm.

In a Wednesday letter to Agriculture Secretary Sonny PerdueSonny PerdueThe Hill's Morning Report - Presented by Facebook - Georgia election day is finally here; Trump hopes Pence 'comes through for us' to overturn results Civil war between MAGA, GOP establishment could hand Dems total control Trump administration races to finish environmental rules, actions MORE released publicly on Thursday, nine Democratic senators criticized the USDA for purchasing pork from JBS USA, an American subsidiary of Brazilian corporation JBS SA.

“It is unacceptable that American taxpayers have been subsidizing our competitors through trade assistance,” wrote the senators, including Senate Minority Leader Charles SchumerChuck SchumerCapitol insurrection fallout: A PATRIOT Act 2.0? Schumer calls for DOJ watchdog to probe alleged Trump effort to oust acting AG Student loan forgiveness would be windfall for dentists, doctors and lawyers MORE (D-N.Y.) and two of the Democratic Party's 2020 presidential candidates, Sens. Kirsten GillibrandKirsten GillibrandDemocrats torn on impeachment trial timing OVERNIGHT DEFENSE: 12 removed from National Guard inauguration security | Austin backs lifting transgender ban Biden Pentagon pick supports lifting transgender military ban MORE (N.Y.) and Amy KlobucharAmy KlobucharSunday shows preview: All eyes on Biden administration to tackle coronavirus Do Democrats really want unity? Democrats seek answers on impact of Russian cyberattack on Justice Department, Courts MORE (Minn.).

ADVERTISEMENT

Democratic Sens. Debbie StabenowDeborah (Debbie) Ann StabenowWith a new president and a new Congress, it's time for Medicare drug price negotiation Yellen champions big spending at confirmation hearing Coronavirus relief deal hinges on talks over Fed lending powers MORE (Mich.), Sherrod BrownSherrod Campbell BrownSenators introduce bill to award Officer Goodman the Congressional Gold Medal Senate panel unanimously advances Yellen nomination for Treasury Senate Democrats file ethics complaint against Hawley, Cruz over Capitol attack MORE (Ohio), Patrick LeahyPatrick Joseph LeahyDemocrats seek answers on impact of Russian cyberattack on Justice Department, Courts Senate approves waiver for Biden's Pentagon nominee Democrats swear in three senators to gain majority MORE (Vt.), Richard Blumenthal (Conn.), Patty MurrayPatricia (Patty) Lynn MurrayHawley pens op-ed to defend decision to object to electoral votes amid pushback Demolition at the Labor Department, too Hawley, Cruz face rising anger, possible censure MORE (Wash.), and Tammy BaldwinTammy Suzanne BaldwinK Street navigates virtual inauguration week Senate Democrats call on Biden to immediately invoke Defense Production Act Seven Senate races to watch in 2022 MORE (Wis.) also signed the letter.

“We ask that you ensure these commodity purchases are carried out in a manner that most benefits the American farmer’s bottom line—not the business interests of foreign corporations.”

U.S. farmers and ranchers are caught in the crosshairs of Trump’s trade disputes, including the nearly year-long trade war with China. After Trump raised tariffs on Chinese goods earlier this month, Beijing boosted import taxes on $60 billion in U.S. agricultural exports.

Trump rolled out $12 billion in direct aid and purchases for farmers and ranchers targeted by tariffs and said last week he would release another $16 billion in assistance.

JBS USA, the second-largest meatpacker in the U.S., has received $64 million in pork purchases from the first tranche of aid, which the company says will go to American hog-raisers that sell to their production plants.

But Democrats have spoken out against the Trump administration sending any federal aid to a company owned by a foreign corporation.

“It is counterproductive and contradictory for these companies to receive assistance paid for with U.S. taxpayer dollars intended to help American farmers struggling with this administration's trade policy,” wrote the senators.

The senators also cited the USDA’s $240,000 contract to purchase pork from Smithfield in 2018, which is owned by Chinese corporation WH Group. Smithfield declined the offer after Republicans, including Senate Finance Committee Chairman Chuck GrassleyChuck GrassleyOn The Money: Treasury announces efforts to help people get stimulus payments | Senate panel unanimously advances Yellen nomination for Treasury | Judge sets ground rules for release of Trump taxes Senate panel unanimously advances Yellen nomination for Treasury Finance Committee vote on Yellen nomination scheduled for Friday MORE (R-Iowa), spoke out against it.

But GOP lawmakers have been mum about JBS USA and Joesely and Wesley Batista, the Brazilian brothers who own its parent corporation, JBS SA.

The Batistas have admitted to bribing thousands of Brazilian officials, have spent time in and out of jail in Brazil, and are facing accusations of insider trading and lying to prosecutors. The Justice Department is also investigating the Batistas for violating the Foreign Corrupt Practices Act, according to court records obtained by The Hill.

In a statement last week, Perdue dismissed concerns about JBS USA’s ownership and defended the USDA’s decision to aid the company.

“These are legal companies operating in the United States. This is no different than people buying Volkswagens or other foreign autos where their executives may have been guilty of some issue along the way,” Perdue said.