Ag Secretary Predicts Slow Start on Trade

The Obama administration is not expected to pay significant attention to international trade until after the nation’s economy has begun to respond to the stimulus package, it was reported in today’s Washington Trade Daily.

Speaking yesterday to a joint meeting of U.S. Wheat Associates and the National Association of Wheat Growers, Agriculture Secretary Tom Vilsack reportedly stated that the Obama administration will not pay much attention to the Doha Development Agenda trade negotiations until the U.S. economy has improved and the U.S. trade team is in place.  Ron Kirk, the nominee for U.S. Trade Representative, and Sen. Judd Gregg (R-NH), the nominee for Commerce Secretary, are awaiting Senate confirmation.

“Once this happens, I think you will see an aggressive effort on trade,” Vilsack stated, adding that the Obama administration understands the importance of trade and the Doha round.

Acting U.S. Trade Representative Peter Allgeier noted that any real progress in Doha will likely have to wait until after India conducts its elections later this spring and has a new government in place.

Vilsack reported that the Obama administration will look for new market opportunities for U.S. exports through such avenues as bilateral trade agreements and aggressive enforcement of existing agreements – including ensuring that the European Union accepts hormone-treated beef.

The new secretary of agriculture noted that the United States can expect opposition from potential trading partners about subsidy payments that U.S. farmers receive, with the assumption being that they distort the market.  Vilsack indicated that an alternate approach by the United States would be to provide support designed to protect the environment.

Vilsack also stated that he is pressing Congress to give the Foreign Agricultural Service (FAS) the funding it needs to support U.S. farm exports.  FAS has hit a funding shortfall and remains underfunded, he said, leaving it unable to effectively promote U.S. exports.

The Obama administration is not expected to pay significant attention to international trade until after the nation’s economy has begun to respond to the stimulus package, it was reported in today’s Washington Trade Daily.

Speaking yesterday to a joint meeting of U.S. Wheat Associates and the National Association of Wheat Growers, Agriculture Secretary Tom Vilsack reportedly stated that the Obama administration will not pay much attention to the Doha Development Agenda trade negotiations until the U.S. economy has improved and the U.S. trade team is in place.  Ron Kirk, the nominee for U.S. Trade Representative, and Sen. Judd Gregg (R-NH), the nominee for Commerce Secretary, are awaiting Senate confirmation.

“Once this happens, I think you will see an aggressive effort on trade,” Vilsack stated, adding that the Obama administration understands the importance of trade and the Doha round.

Acting U.S. Trade Representative Peter Allgeier noted that any real progress in Doha will likely have to wait until after India conducts its elections later this spring and has a new government in place.

Vilsack reported that the Obama administration will look for new market opportunities for U.S. exports through such avenues as bilateral trade agreements and aggressive enforcement of existing agreements – including ensuring that the European Union accepts hormone-treated beef.

The new secretary of agriculture noted that the United States can expect opposition from potential trading partners about subsidy payments that U.S. farmers receive, with the assumption being that they distort the market.  Vilsack indicated that an alternate approach by the United States would be to provide support designed to protect the environment.

Vilsack also stated that he is pressing Congress to give the Foreign Agricultural Service (FAS) the funding it needs to support U.S. farm exports.  FAS has hit a funding shortfall and remains underfunded, he said, leaving it unable to effectively promote U.S. exports.