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Global Rice Markets are Distorted by Bad Actors, Contributing to U.S. Trade Deficits USA Rice Testifies at Commerce Department
May 18, 2017
USA Rice's Cummings (far right) delivers
U.S. rice message on trade
WASHINGTON, DC -- The Department of Commerce hosted a day-long hearing with witnesses from across the U.S. economy to examine reasons for bilateral deficits with 13 U.S. trading partners. USA Rice, participating in the agriculture panel, explained that while the U.S. rice industry generates a $1.2 billion trade surplus, “a majority of the countries being examined, including China, the European Union, India, Japan, Korea, Taiwan, Thailand, and Viet Nam intervene heavily in the rice market, and the result is restricted access for U.S. rice or unfair competition in foreign markets.”
In his testimony, USA Rice Chief Operating Officer Bob Cummings further noted that “globally rice is one of the most heavily protected crops in terms of domestic support, border protection, and export controls,” and that, like nearly all of U.S. agriculture, export success hinges on good trade agreements.
“Well-negotiated and enforced trade agreement are the key to helping the U.S. rice industry contribute to reducing bilateral trade deficits. Where there are good, solid trade agreements, increased rice exports follow. We need look no further than the Uruguay Round Agreements and establishment of the WTO, NAFTA, and the U.S. Colombia Free Trade Agreement for evidence,” he said.
Today’s hearing was in response to President Trump’s executive order of March 31 to the Secretary of Commerce, the U.S. Trade Representative, and other trade agencies to prepare an
Omnibus R
eport on Significant Trade Barriers
. Canada, China, the European Union, India, Indonesia, Japan, Korea, Malaysia, Mexico, Switzerland, Taiwan, Thailand, and Viet Nam were specifically being examined today.
Cummings said USA Rice and other agriculture groups have mounted a campaign to highlight the significant contributions agriculture makes to U.S. exports and remind the administration of the importance of a forward-looking trade policy that supports good trade agreements, strives to open new markets, and undertakes aggressive enforcement against trading partners that don’t live up to their international obligations.
“U.S. rice exports in isolation will not resolve the bilateral trade deficits identified by the administration. However, action by the U.S. government to support exports from America’s highly efficient agricultural sector is an important part of the solution. To that end, existing trade agreements that are working well for agriculture should not be undone, and enforcement can and should be stepped up,” concluded Cummings.
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