Barriers to Rice Trade Outlined in Annual USTR Report

WASHINGTON, DC – On March 31, the office of the U.S. Trade Representative (USTR) published their 2020 National Trade Estimate (NTE) Report, an annual publication detailing foreign trade barriers faced by U.S. exporters.  While the report itself spans more than 500 pages and covers thousands of products and services far beyond agriculture, trade barriers for rice and other agricultural barriers are sprinkled throughout the document.

USTR and sister agencies such as the U.S. Departments of Agriculture, Commerce, State, and Treasury all contribute to the report, but also rely upon annual industry submissions.  USA Rice submitted comments for the 2020 NTE last October, outlining an array of issues across seven different markets, ranging from the European Union’s tariff regime and import policies; domestic support programs in India and China; unwarranted phytosanitary barriers and retaliatory tariffs in Turkey; anticompetitive practices and import policies in Colombia, Japan, and Korea; and trade restrictions in Taiwan.  In total, USA Rice estimates that if all the trade barriers in the USA Rice 2020 NTE submission were addressed, it could result in up to $775 million in annual additional export sales of U.S. rice over time.

The key issues laid out by USA Rice were not much different from years past, but are continually updated to reflect changes in policy, tariffs, and new opportunities.  The NTE is instrumental in USTR’s negotiations to eliminate barriers when they engage in bilateral discussions with other countries.

“One of the key issues in the USA Rice submission last fall was the lack of a country specific quota (CSQ) for U.S. exports to Korea and it had also appeared in previous submissions,” said Peter Bachmann, USA Rice vice president international trade policy.  “Shortly after that submission was made, the Administration worked to secure an agreement for a CSQ which ensures that the issue will not be included in our 2021 NTE submission this fall.”

Bachmann added:  “While the industry submission process may seem bureaucratic and our document may not be completely transferred into USTR’s annual NTE report, we essentially provide a ‘honey-do’ list to help our exporters and give USTR and USDA the coverage they need to raise our concerns throughout their negotiations across the globe.”

Previous USA Rice submissions included calls to address China’s administration of their tariff rate quota system as well as exceeding their domestic support commitments, eventually leading to dual victories after litigation at the World Trade Organization in 2019.