US approves addition of Japan to TPP talks

Earlier today the White House announced approval of Japan’s entry into talks on an Asia-Pacific trade deal.  According to thehill.com, after more than a year of consultations with Tokyo, acting US Trade Representative Demetrios Marantis announced the two nations have agreed to a “robust package of actions and agreements” allowing Japan to join the ongoing negotiations of the Trans-Pacific Partnership.

American Farm Bureau says they are pleased with the decision.  AFBF President Bob Stallman says, “As the fourth-largest US agricultural export market, trade with Japan is important to America’s farmers and ranchers.”  Stallman adds, “A comprehensive TPP agreement that includes Japan will strengthen trade relationships, address remaining barriers and improve the competitiveness of the Asia/Pacific market.”

Japan’s admission into the TPP negotiations still requires the approval of the other 10 nations involved.

Amendment renewing TPA passes

The U.S. Senate on Saturday, March 23 passed an amendment by Ohio Senator Rob Portman and Ron Wyden of Oregon that would increase export opportunities by renewing Trade Promotion Authority (TPA).

With exports crucial to getting America’s economy back on track, Portman, the former U.S. Trade Representative, said that while he supports the export agreements the Administration is considering, the President’s trade negotiators must have TPA to ensure the best possible deal.

Missouri trade mission in Taiwan & South Korea

Missouri commodity and ag industry leaders are among those with Missouri Governor Jay Nixon on a trade trip this week in Taiwan and South Korea.  Governor Nixon says Taiwan is a big importer of Missouri corn and soybeans and South Korea is Missouri’s fourth largest trading partner overall.

“They are already a big market for us and we know that with the recent free trade agreements that have been inked nationally, these are opportunities for us to expand already good relationships.”  Nixon says these countries need our corn and soybeans, “When you drive across Missouri and you see the corn this summer and you see the beans we grow and when folks hear me say we feed, fuel and clothe the world, these are two very good examples of economies that rely on us here in the heartland to them the food.”

Also on this trip, Nixon says they are hopeful for expanding beef trade, “We have a number of very significant meetings on the beef side.”

Representatives from five Missouri universities are on the trip as well. Nixon says Missouri is getting more and more foreign students attending school here and that’s helping cement trade relations.

At last report, the governor’s office says Missouri has inked deals in Taiwan for that country to purchase $700 Million in Missouri goods over the next four years. The deal includes a $200 million agreement between the Missouri Department of Agriculture and the Taiwan Feed Industry Association.

~Missourinet contributed to this report~

Trade expert says farmers can up bean yields

John Baize of John C. Baize & Associates at 2013 Illinois Soybean Profitability Summit

John Baize of John C. Baize & Associates at 2013 Illinois Soybean Profitability Summit

An international trade consultant says U.S. farmers can raise their soybean yields if they pay as much attention to beans as they do to corn yields. John Baize, of John C. Baize & Associates, says demand for soybeans is there – increasingly more in the export market than the domestic market as evidenced by sales of beans to China and beyond.

“We have the demand out there,” Baize says, “In fact, if we look at what’s happened in the last three or four years, where we have prices of $15 and $16 soybeans — that didn’t occur out of a vacuum. It occurred because global demand was continuing to grow when we had some weather problems.”

Baize says the biggest limiting factor for U.S. soybean demand in the last five years has been supply. Using Illinois as an example, Baize says he’s convinced farmers can raise their average bean yields by at least 10 bushels an acre if they take steps to do that.  He tells Brownfield Ag News, “That is very possible. We know what the yield potential is. It’s a question of how much farmers are willing to invest their time and some money to maximize some yields. But, at $12 beans you can certainly afford to invest some money.”

Baize spoke to farmers at the Illinois Soybean Profitability Summit on Monday.

AUDIO: John Baize (7:00 mp3)

 

U.S., China discuss trade issues

The U.S.-China Joint Commission on Commerce and Trade is meeting this week in Washington, D.C.  Ag Secretary Tom Vilsack expects several agricultural issues to be discussed.

“In addition to beef and horticultural issues, there’s also the issue of biotechnology and the regulatory process,” Vilsack says. “Our hope is that, by the time the meeting ends, we have progress on some of those fronts.”

In particular, Vilsack hopes for progress in synchronizing regulatory processes between the two nations, to get new technologies into China as soon as possible.

Villwock: PNTR is good for Indiana agriculture

On Friday the US House of Representatives passed permanent normal trade relations to Russia.  Indiana Farm Bureau president Don Villwock says, “Trade is critically important to Indiana agriculture and passing PNTR allows Indiana farmers, particularly pork, poultry, and beef producers to gain more competitive access to a significant market and economic opportunity.” 

He adds if PNTR is not enacted US farmers will continue to be disadvantaged in the Russian market.  Exports to Russia annually are over $1.4 billion annual – primarily in poultry, pork, and beef products.

HR 6156 passed in the House by a vote of 365-43.  The Senate has yet to vote on the measure.

UNL-IANR opens office in China

The Institute of Agriculture and Natural Resources (IANR) at the University of Nebraska-Lincoln has opened an office in Beijing, China.

IANR vice-chancellor Dr. Ronnie Green says having an office in China opens up new possibilities for joint research and faculty and student exchanges between Nebraska and China.

We asked Green what China has to offer Nebraska in terms of agricultural research.

“They have some of the same issues that we have—in terms of water,  in particular,” Green says, “so sharing our knowledge with them, and visa-versa, will benefit our program, we think.”

Green says the Nebraska Department of Agriculture helped to negotiate the opening of the office in Beijing and will be working to expand opportunities for Nebraska agribusiness companies in the world’s most populous nation.

“It will create opportunities for Nebraska products and create opportunities for Nebraska companies to do business in China, as well as what the benefit for the university will be,” he says.

The IANR office is located in China’s State Administration of Grain (SAG).  SAG controls national grain distribution, provides guidelines for development of the grain industry and administers China’s national grain reserves.

AUDIO: Ronnie Green (6:31 MP3)

 

Lt. Governor signs agreements with Chinese businesses

Lt. Governor Becky Skillman has signed Memorandums of Understanding with three Chinese businesses.  Godeagle, Jiaxing Stone Wheel, and Henan Fukang Feather Group all intend to invest in Indiana.  Creating more than 50 jobs, the agreement with Godeagle would establish a cooking oil production and facility headquartered in Muncie.  In addition, Jiaxing Stone Wheel plans to enter into a joint venture with Sutong in Elkhart that could add 150 jobs and Henan wants to expand its feather collecting and processing facilities in Huntingburg, potentially adding 40 jobs.  Lt. Governor Skillman says, “Indiana’s business friendly environment is leading to additional job growth and investment from the relationships we have built in China.”

China is Indiana’s second largest Asian trading partner.  From 2000 to 2010, Indiana’s exports to China grew by 554 percent.

Lt. Governor leads trade mission to China

Indiana Lt. Governor Becky Skillman and a 37-member delegation left for a trade mission to China today.  Lt. Governor Skillman says this is the 25th anniversary of the sister state relationship between Indiana and the Zhejiang province – adding a special dynamic to the trip. 

“This was a relationship established in 1987 by then Governor Bob Orr and Lt. Governor John Mutz,” she says. “If Bob Orr were alive today – I think he would be pleased that this economic partnership has flourished and continues to grow.”  The Lt. Governor says over the next week they will continue to build upon those relationships. 

Skillman tells Brownfield the goal is to, “Strengthen the existing relationship, reach out to new territories within China, and ultimately create more investment in the state of Indiana and more new jobs.”  From 2000 to 2010, Indiana’s exports to China grew by 554 percent. 

The delegation returns June 17th.

Colombia FTA “finally” in place says AFBF

With the Colombia Free Trade Agreement with the U.S. now in effect, the potential for new U.S. ag sales is skyrocketing, says the American Farm Bureau Federation.

“We projected this will mean over $350 to $370-Million a year of new sales in the not too distant future of ag products now that we’re competitive,” says American Farm Bureau Trade Specialist Dave Salmonsen.  He adds – it took a long time in coming. The negotiations began with Colombia eight years ago and the deal was essentially completed six years ago. In that time span, Argentina – and, just last year Canada – reached tariff agreements with the South American country.

“You know, the U.S. paved the way and showed that this could be done and what potential benefits would be, but, our process bogged down and moved so slowly that other countries took advantage of it.”

Total US exports under the Colombia FTA will grow by more than one-Billion dollars, according to government estimates.

More than half of U.S. ag products going to Columbia are now tariff-free and in the next few years tariffs will be phased out completely.

~AFBF contributed to this report~