Tai famous anti-dumping and countervailing responsibility tariffs fall below the purview of the Commerce Department, “but I think it’s reasonable for us to take a look at the health and functioning of the market here domestically in light of changes that have happened in the international context and how healthy competition is here,” Tai mentioned.
As DTN Retail Fertilizer Trends stories this week, DAP and MAP costs have come down from their spring peaks, however each merchandise are nonetheless operating 26% to 30% increased than they have been a 12 months in the past. (See https://www.dtnpf.com/…)
Vilsack mentioned USDA will likely be rolling out some help this fall to assist advance some new fertilizer vegetation and mining operations both within the technique of building or allowing that can assist alleviate a few of these pressures on imported fertilizer.
MEXICO’S BIOTECH POLICIES
Bob Haus, representing Corteva, which employs about 3,000 folks in central Iowa, raised the problem with officers over Mexico’s delays or refusals to approve 14 biotech crop traits involving corn, soybeans and cotton.
“As our customers will attest, this will affect their decisions going forward on what to plant,” Haus mentioned.
Lillibridge additionally famous Mexico is the highest U.S. marketplace for corn and dried distillers’ grain exports. Lillibridge mentioned he’s involved about statements and government orders that Mexican President Andres Lopez Obrador has made about biotech crops.
“With these decrees, farmers are very, very concerned about what will happen,” Lillibridge mentioned.
Vilsack mentioned he has repeatedly spoken to Mexican Agriculture Secretary Victor Villalobos about biotech corn. “I have talked to him so many times that we don’t know how many times,” Vilsack mentioned.
Vilsack additionally talked to Obrador on the problem, stressing that any disruption of U.S. corn flowing to Mexico would drive up increased meals costs for Mexican shoppers. Vilsack touched on the Mexican president’s populist politics that highlights his help for small farmers. Obrador sees the problems of white corn versus yellow corn otherwise. “Part of it is his heritage,” Vilsack mentioned. “For him, it’s about white corn because (Mexico) is where white corn was first developed.”
Regarding the United States-Mexico-Canada Agreement (USMCA), Tai mentioned the deal has robust enforcement mechanisms. “There is a very challenging dynamic that we have on biotech and corn trade with Mexico,” Tai mentioned, pointing to Vilsack’s feedback. “On these very important issues in the USMCA, USDA and USTR are working hand in glove.”
Vilsack identified Tai already has proven a willingness to make use of USMCA guidelines to resolve disputes because the USTR did concerning dairy markets with Canada.
“So, I think that’s a strong point that I continually reinforce to my colleagues and my friends in Mexico is that the U.S. Trade Representative’s Office is not fearful of using those processes.”
TRADE TALKS IMPORTANT
Steve Noah, president of Farmers for Free Trade, credited the Biden administration for creating the Indo-Pacific Economic Framework for Prosperity, however Noah identified that is not a particular commerce deal that may open new markets and decrease tariffs.
“Our competitors have entered into trade deals left and right,” Noah mentioned.
Noting the problems the U.S. had with China in the course of the commerce conflict, Brian Kemp, representing the U.S. Soybean Export Council (USSEC) referred to as for growing new markets as effectively. He spotlighted that because the 2018 commerce conflict, USSEC has labored to extend markets elsewhere, and now Egypt has grow to be a prime 4 marketplace for U.S. soybeans.
Vilsack later identified that elevated market entry stays a precedence, however he additionally added the U.S. is also heading in the direction of one other 12 months of file agricultural exports as effectively.
JOHN DEERE PRODUCTION MOVE
Tai additionally touched on an earlier announcement from John Deere that the farm equipment producer will transfer some manufacturing from two Iowa services to Mexico. Tai mentioned agriculture has been a extra profitable winner within the commerce financial system than manufacturing, however the CHIPS and Science Act signed into regulation final month will assist as a result of it’s going to enhance funding in home manufacturing of know-how similar to semiconductors.
“All of these machines behind me don’t run without chips,” Tai mentioned, sitting in entrance of a few Deere tractors.
Chris Clayton might be reached at Chris.Clayton@dtn.com
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