Trade « National Association of Wheat Growers

Trade

On average, the U.S. exports about half of its annual wheat crop, leading the world in wheat exports. During the 1990s, wheat and wheat flour accounted for more than nine percent of all U.S. agriculture exports by value. Free and open trade is a priority for wheat growers and for NAWG.

Trade Policy

NAWG and U.S. Wheat Associates, the industry’s overseas market development organization, work together to fashion trade policy priorities for the industry. Most of this work is done through a joint policy committee, which includes representatives from both organizations and makes recommendations to both boards for approval. On a day-to-day basis, NAWG takes the lead on legislative lobbying activities while U.S. Wheat primarily interfaces with administrative agencies.

FTAs

The U.S. wheat industry is strongly supportive of pending free trade agreements with Colombia, Panama and South Korea. These agreements have been stalled for up to three years, but their expeditious passage is crucial to the wheat industry’s ability to maintain and grow market share in these countries. Timely passage of the pending agreement with Colombia is particularly critical at this juncture; for more, please see this briefing paper.

Cuba

It is estimated that the Cuban embargo costs the U.S. wheat industry upwards of $40 million in lost sales each year. The wheat industry strongly supports policy changes through regulations or legislation that would allow producers to tap into this market and help feed the Cuban people, including H.R. 4645, introduced by House Agriculture Committee Chairman Collin Peterson (D-Minn.) in February 2010. For more on NAWG’s policy in reference to Cuba, please see this briefing paper, this op-ed and this testimony to the House Agriculture Committee. For more on the economic effects of Cuba trade restrictions from the International Trade Commission, please see this presentation. An economic analysis of Cuba legislation from Texas A&M is accessible here.

**Note: Please see a NAWG letter of support for H.R. 4645 before a House Agriculture Committee mark-up on June 30 here, and a coalition letter opposing amendment to the bill here.**

Doha Round

The Doha Development Round of World Trade Organization negotiations began in 2001 with the intention of lowering trade barriers and spurring development in the less-industrialized world. Since then, these discussions have frequently stalled, and official negotiations have been on hold since the summer of 2008. Nevertheless, the U.S. wheat industry is hopeful for a successful and balanced conclusion to the Doha Round. For more on the Round, please see this presentation from Craig Thorn of DTB Associates, LLP.

MAP/FMD

The U.S. wheat industry strongly supports full funding as authorized in the 2008 Farm Bill for the Market Access Program (MAP) and the Foreign Market Development (FMD) program, which share the costs of overseas market development efforts of U.S. nonprofit agricultural trade organizations, including U.S. Wheat Associates. There is strong evidence that these programs are excellent investments for the U.S. taxpayer and grower, with recent studies showing that MAP returns $23 in net revenue for every $1 invested by growers and the total economic gain to the U.S. economy from increased market development activity was $1.1 billion per year from 2002-2009. For more information, see a cost-benefit analysis of MAP and FMD by Global Insight here or a one-page summary here.