Staff Reports
The Biden administration faces criticism over its trade strategy as U.S. agricultural exports take a nosedive, plummeting by a staggering $17 billion in fiscal year 2023, with an expected $8 billion decrease in the following year. This significant shortfall has raised concerns among U.S. senators, who are ramping up pressure on U.S. Trade Representative Katherine Tai and Agriculture Secretary Tom Vilsack to address the issue.
Senators have penned a blistering letter to the administration, condemning its failure to pursue traditional free trade agreements. Meanwhile, other nations like China, Canada, the European Union, and the United Kingdom are striking trade deals that undermine American export opportunities. The letter squarely blames the Biden administration's trade strategy for the crisis, asserting that the lack of pursuit of international trade agreements is severely impacting U.S. agriculture.
The repercussions of this trade deficit are hitting hard in states like South Dakota and North Dakota, where corn and soybean exports have plummeted by a significant 25%. The Ninth Federal Reserve District, covering these states, is feeling the brunt of this decline, with grim implications for farmers and ranchers.
Senators concerned over growing agricultural trade deficithttps://t.co/p3c6mlOis4
— The Center Square (@thecentersquare) March 14, 2024
According to a USDA report, grain and animal exports have seen the most significant reductions, notably in corn, wheat, sorghum, and beef. The USDA attributes the broad decline in export values to the global decrease in commodity prices from the highs of 2022. This economic downturn is presenting substantial challenges and jeopardizing the livelihoods of over a million American workers, farmers, ranchers, and millions of other U.S. jobs.
The senators are demanding prompt action from the Biden administration to reverse this alarming trend. They insist that immediate steps be taken to analyze and address the link between U.S. competitiveness and market share in foreign agricultural markets. The letter urges the administration to consider negotiated tariffs, tariff rate quotas, and other market access provisions to rectify the decline in U.S. agricultural exports.
As pressure mounts from senators, all eyes are on the Biden administration to unveil its plan to tackle this concerning agricultural trade deficit and prevent further economic instability.
