Strong, enforceable trade policy is an essential part of the produce industry’s future competitiveness in a rapidly globalizing world. It is in the interest of the fresh produce sector to enable the Administration to negotiate beneficial trade agreements on our behalf, and then retain essential mechanisms to address barriers that may impede the full realization of those benefits.
Trade Promotion Authority
Background
Trade Promotion Authority (or "Fast-Track") provides the President with the authority to negotiate free trade agreements (FTAs) for Congressional approval on an up-or-down basis within a specified time frame. Since 1974, Congress has granted every U.S. president with that authority.
However, America's competitiveness is now at a crossroads as TPA expired on July 1, 2007. In its absence, we are left with the unworkable prospect that all 535 Members of Congress would have an opportunity to amend various portions of trade agreements. This endless cycle of negotiation and renegotiation will result in the U.S. being left on the sidelines as other nations execute and implement trade deals, meaning U.S. workers, farmers, and companies will be at a competitive disadvantage.
United Fresh strongly supports the goal of renewing trade promotion authority in a manner that allows its use as a tool to benefit the fresh produce sector in accessing global markets.
Technical Assistance to Specialty Crops (TASC)
Background
In 1995, the U.S. enjoyed a trade surplus of over $600 million in fruits, vegetables and tree nuts. However, in the intervening years, the trend has reversed itself and we now run a trade deficit for these specialty crops. U.S. exports have not kept pace with imports, in part, because American growers continue to face tariff and non-tariff barriers in many international markets. It is essential that this disturbing trend be reversed if U.S. specialty crop growers are to remain competitive in global markets.
The Technical Assistance for Specialty Crops (TASC) program was established in the 2002 Farm Bill (PL 107-171, section 3205) to "address unique barriers that prohibit or threaten the export of United States specialty crops" by providing "direct assistance through public and private sector projects and technical assistance to remove, resolve, or mitigate sanitary and phytosanitary and related barriers to trade."
The 2002 Farm Bill originally provided $2 million in mandatory funding annually for TASC. The program’s success led to an increase in funding under the 2008 Farm Bill to $9 million annually in 2012.
TASC proposals are accepted from any U.S. organization, including, but not limited to: U.S. government agencies, state government agencies, non-profit trade associations, universities, agricultural cooperatives and private companies. The Foreign Agricultural Service (FAS), which administers the program, provides grant funds as direct assistance to U.S. organizations. Applicant contributions are not required, but are strongly encouraged. Funds are awarded to applicants that demonstrate how their project will overcome trade barriers resulting in market access retention and expansion for specialty crops. Award maximums are $250,000 per year, and for activities of up to three years. Proposals may target any eligible export market, including single countries or reasonable regional groupings of countries.
Examples
The TASC program has proven to be very successful in removing trade barriers for U.S. specialty crop growers. TASC funding is used to conduct scientific research and other activities needed to facilitate the removal of specialty crop trade barriers in international markets. Below are several examples of successful TASC projects:
- The California Grape and Tree Fruit League utilized TASC to expand exports of California stone fruit to Mexico by organizing less restrictive export requirements.
- The Indian River Citrus League in Florida utilized TASC to create the Caribbean Fruit Fly Export Alert Network (FlyNet), which reduces costs for exported Florida grapefruit that must be certified free of the Caribbean fruit fly.
- The California Pistachio Commission utilized TASC to support a trade mission to educate EU health authority officials and importers on the food safety practices of pistachio growers.
- The Michigan Apple Committee utilized TASC to place a Mexican fruit inspector in Michigan and meet phytosanitary protocols necessary to expand apple exports to Mexico.
- The National Potato Promotion Board utilized TASC for several export expansion projects, including the negotiation of protocols for U.S. seed potatoes exports to Venezuela and Brazil and fresh potatoes to China.
- The Northwest Fruit Exporters utilized TASC for research on fire blight problems in order to open the Australian and South African markets to Pacific Northwest apples.
- The Virginia Apple Growers Association utilized TASC to fund the activities of a Mexican inspector for exports to Mexico, thereby doubling Virginia apple exports to this market.
- The National Potato Council has utilized TASC funds for developing testing protocols and domestic phytosanitary management and reporting systems that allow trade negotiations with Mexico and other potential export markets to be based on fair representations of the phytosanitary health of US potatoes.
These are just a few examples of TASC projects that have opened numerous international markets for U.S. specialty crop growers.
Goal: United members should urge their Congressional representatives to resist any efforts through the appropriations process or budget reconciliation, to limit mandatory spending and thereby gain budgetary savings through a reduction in the essential TASC program.
Market Access Program
United Fresh is a strong supporter of the Market Access Program (MAP). This export promotion program seeks to assist U.S. growers competing in the world market against heavily-subsidized foreign agricultural products.
The Market Access Program is administered by USDA's Foreign Agricultural Service (FAS) and is WTO "Green Box" compliant. This matching fund program serves to increase foreign awareness and consumption of U.S. agricultural products in overseas markets.
MAP is particularly beneficial to the U.S. produce industry, given its strong dependence on exports. Often, American fresh fruits and vegetables will be sharing the produce aisle in overseas supermarkets with foreign produce that is advertised at government expense, had packing and shipping costs defrayed via government intervention and received millions of dollars in subsidized infrastructure benefits in order to reduce their cost of production. This activity makes programs such as MAP essential if American produce growers are to maintain a foothold in essential foreign markets.
Originally created as the "Targeted Export Assistance" Program in the 1980s, the MAP program today receives significantly less money than it began with. The 2008 Farm Bill provides $200 million annually in mandatory funds for MAP. This amount is 66% of the original funds provided for this essential program over twenty years ago. In adjusted dollars, the reduction in spending for MAP is even greater than those numbers indicate. This underfunding of such an essential program is particularly acute because foreign competition in the produce industry has been growing significantly during those intervening years.
Goal: United members should continue to press their Congressional representatives for full funding ($200 million annually in mandatory funds) of the Market Access Program consistent with the 2008 Farm Bill, and also remind them that amount is a significant reduction in real dollars from its original funding. This underfunding should be corrected, and remain mandatory funding, in future Farm Bills or other appropriate legislative vehicles.
International Trade Studies
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