Founded in 1960, the Council now has 10 international offices, representatives in an additional 15 locations and a network of consultants and partnerships that support programs in more than 50 countries. Our members, leadership and staff fundamentally believe exports are vital to global economic development and to
On behalf of the Council, I appreciate the opportunity to appear before the Committee and provide our perspective on the economic implications with respect to the modernization of the North American Free Trade Agreement (NAFTA).
Preserve and Protect Market Access
In our communications with the Executive Branch, we exhorted that all efforts should be expended to maintaining all existing commitments in a “do no harm” manner and expanding upon current market access and other provisions that enhance U.S. market share in both the Canadian and Mexican markets, and that promote economic integration and support farm incomes. In addition, it is imperative that other negotiating objectives or independent trade policy actions that could result in retaliation should be avoided at all costs. Agriculture has traditionally been the first target in response to disruptions in trading relationships. The 2009 trucking dispute with
Moreover, the recent furor of the proposed executive order to withdraw from
Since March, our President and CEO
Economic Implications of NAFTA Negotiations
To more concretely understand both the risks of ending
With zero tariffs for
The results demonstrate that the
Conversely, if the negotiations fail and we quit
The results of the analysis finds that the negative price impact on
Obviously, commodities are fungible and markets adjust over time. In addition, impacts extend to other farm product with interlocking relationships, such as livestock products. A drop in overall farm income can have spillover effects that could lead to changes in farm structure, the idling of land or its conversion to alternative uses–further lowering corn profitability.
Negotiation Objectives and Priorities
In our formal comments to the Administration, we advocated that this negotiation should build on and strengthen the objectives under the
National Treatment and Market Access for Goods
The Council urged the Administration for the continued elimination of all tariff preferences and/or quotas for corn, corn-coproducts (corn gluten feed, corn gluten meal, grain sorghum, barley and malt; ethanol and dried distiller grains).
Sanitary and Phytosanitary (SPS) Measures
Protectionist sanitary and phytosanitary measures that lack a scientific basis and are not based on a risk assessment continue to unjustifiably restrict access for
While products derived from agricultural biotechnology are grown in 28 countries and are traded widely, there remains a lack of synchronicity between countries, particularly countries that approve these products and countries who import them. This unpredictable regulatory and trade environment has resulted in trade disruptions that have caused economic impacts and delayed opportunities for farmers to have access to new technologies.
The North American Free Trade Agreement (NAFTA) came into force two years prior to the commercialization of the first biotech crops in 1996. Since that time, biotech acreage across multiple crops has grown rapidly because of the increased productivity and, environmental benefits associated with this technology.
Under a modernized
Coherent National Renewable Fuel Standards
In conclusion, the
In no case has this been more apparent than in our trade relationship with
But to take advantage of this and other emerging export opportunities – and to maintain our competitiveness in the global marketplace – trade liberalization must continue at all levels, bilateral, regional and multilateral. Trade agreements hold the key to opening markets and resolving tariff and non-tariff barriers to allow the movement of coarse grains, co-products in all forms and other agricultural exports to where they are demanded. With effective policies in place and followed, trade works – and the world wins.
Read this original document at: https://agriculture.house.gov/UploadedFiles/7.26.2017_Gaibler_Testimony.pdf