WASHINGTON, DC – Earlier today, the U.S. House Committee on Ways and Means Chair Jason Smith (R-MO) formally submitted a
request to the U.S. International Trade Commission (USITC) to initiate what is known as a Section 332 fact-finding investigation regarding global rice exports at the request of USA Rice.
In 2015, the USITC published a study, “Rice: Global Competitiveness of the U.S. Industry,” following investigation no. 332-549 (see
USA Rice Daily, May 14, 2015). That investigation was also conducted at the urging of USA Rice in 2014 to former House Ways and Means Member Charles Boustany (R-LA). The report provided critical economic evidence to support several important trade enforcement actions by the Office of the U.S. Trade Representative.
In June 2023, Kirk Satterfield, Mississippi rice farmer and chair of USA Rice, asked Chairman Smith to request an update to the 2015 investigation given the significant changes in global rice exports since that time.
Satterfield’s letter stated: “The critical data in [the 2015] report has become outdated as policies have changed significantly and India has continued to ramp up their exports, necessitating an updated version...We believe that an updated report could provide significant insight and transparency around major rice exporters throughout the world and could provide critical information for the U.S. government and industry to better hold our competitors accountable for their WTO commitments.”
In a release today, Chairman Smith said: “I strongly suspect that unfair subsidies and other policies in foreign countries have contributed to a decrease in U.S. rice exports over the last decade, from $2.2 billion in 2013 to $1.7 billion in 2022. Given a level playing field, American rice producers will win more customers around the world and support more American jobs.”
In response today, Satterfield said, “We truly appreciate Chairman Smith’s steadfast leadership and his support for the U.S. rice industry’s trade priorities. We’re looking forward to his team’s work with the skilled economists at the USITC to update this impactful study to help inform future trade enforcement actions around rice at the WTO or through other mechanisms.”
Upon acceptance of this new investigation, USITC will spend the next year putting together a comprehensive report outlining the impact of global rice trade to the U.S. rice industry.