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Ag Trade Caucus Asks for FTA Negotiations to Tackle SPS and Tariffs

The Agriculture Trade Caucus asked the administration to negotiate market-access trade agreements, saying it needs "to proactively engage and secure enforceable, high-standard agreements with our trading partners to ensure our farmers and ranchers can compete globally on a level playing field."

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House caucus Co-Chairs Reps. Dusty Johnson, R-S.D., and Jimmy Panetta, D-Calif.; Trade Subcommittee Chair Rep. Adrian Smith, R-Neb.; and Rep. Jim Costa, D-Calif., were joined by 24 other House members on a letter this week. The Office of the U.S. Trade Representative and USDA "must work to secure agreements that lower tariffs, ensure sanitary and phytosanitary (SPS) regulations are science-based, transparent, and consistent, and eliminate the abuse of geographical indicators in the food sector," the letter said.

The group said that if the U.S. chooses not to negotiate free trade agreements -- the USTR has characterized market liberalizing FTAs as 20th century instruments -- U.S. exporters will fall behind competitors. "Many of our competitors benefit from lowered tariffs from bilateral and regional trade agreements like Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). By contrast, our farmers and ranchers continue to face onerous tariff rates which stifle market growth. As long as this dynamic remains in place, U.S. producers will continue to lose market share in the region."

The signers asked for negotiations with Brazil to eliminate ethanol tariffs, and for discussions with the EU on SPS and geographical indicators, which they argue have "the sole purpose of keeping American agricultural products out. If the U.S. is not able to address these issues in trade negotiations, it will weaken our negotiating hand around the world."