Trade Policy, Committee Meetings Dominate Day Two of USMEF Board Meeting

Trade policy was the primary focus during the second day of the USMEF Board of Directors Meeting in Washington, D.C. The agenda began with a panel discussion on the impact of science on agricultural trade, moderated by Thad Lively, USMEF senior vice president of trade access. Panelists were Suzanne Heinen, acting USDA deputy undersecretary of the Farm and Foreign Agriculture Service, and Jon Dardis, first secretary for agriculture and food for the Embassy of Ireland.

Thad Lively (left) moderates a discussion on the impact of science on trade with panelists Suzanne Heinen of USDA and John Dardis of the Embassy of Ireland

“The United States maintains that trade standards should be based on science and we will continue to argue that consumer preference issues should not be part of that discussion,” Heinen said. “Those issues should be outside the realm of standard setting, but we can’t pretend that they aren’t going to influence trade patterns. And so perhaps we need a different forum to discuss these issues and to come to some kind of common understanding on what role these matters should play in international trade.”

Dardis explained that certain EU standards have become so entrenched into the region’s agricultural policy that a significant information gap has been created.

“Here’s the big problem – there’s no research going on in Europe on the use of hormones in meat production,” he said. “And it’s the same with GMOs. You can’t just turn off a research system and then turn it on again 20 years later.”

“USMEF’s commitment to science-based trade was on full display this week, and it really became the dominant theme at a number of our sessions,” said USMEF President and CEO Philip Seng. “But we also have to be mindful of consumer perceptions across the globe, and be ready to defend the science behind our trade policy positions. This is the only way we are going to achieve the winning combination of fair market access and a favorable image of our products in the minds of our overseas customers.”

In the day’s next general session, noted economic and political analyst James Wiesemeyer addressed a number of current ag policy issues, including the Senate and House versions of the Farm Bill and the impact deficit reduction efforts will have on agricultural programs.

James Wiesemeyer of Informa Economics addresses USMEF members

Wiesemeyer, senior vice president of Informa Economics, offered his take on the USDA’s final rule on country-of-origin labeling (COOL) for meat products, which had been issued just a few hours earlier.

“I can tell you that USDA is very confident that they are going to meet the spirit of the WTO ruling,” he said. “But I can also tell you that in our talks with Canadian and Mexican trade officials, they are very upset at that final rule – so we have not heard the end of this. Now if the WTO rules against the United States, there is a marker in House farm bill that will allow COOL to be part of a conference agreement to try to settle it again. So, at least there’s a framework there.”

While complimentary of the Obama administration on many issues, Weisemeyer was very critical of the sequester-driven USDA inspector furloughs that threatened to severely interrupt U.S. meat production earlier this year.

“It was all politics – they wanted to get the Republicans to the negotiating table and they really used your industry,” he said. “I’m trying to be as fair as I possibly can, but that’s the truth. And if lawmakers don’t deal with this issue, it’s going to come back Oct. 1 when the fiscal year ends.”

The following USMEF standing committees also held meetings Thursday:

• Exporter Committee
• Pork and Allied Industries Committee
• Beef and Allied Industries Committee
• Feedgrain and Oilseed Caucus

Each committee session included detailed updates on market access and marketing activities by directors and staff from USMEF’s international offices. Resolutions approved by each of these committees will be considered by the full USMEF board of directors at Friday’s closing business session.