USDA’s forecast of a looming record farm trade deficit next year raises the specter of an earlier debate and questions over the administration’s policy not to do free trade agreements. The $42.5B farm trade deficit, if realized, again raises the issue of the administration rejecting market-opening free trade deal, according to U.S. Trade Ambassador Katherine Tai.
However, Tai’s argument before Senate Ag lawmakers this year swayed few, including retiring Democratic Ag Chair Debbie Stabenow.
Top Finance panel Republican Mike Crapo says U.S. producers have already been hurt by the lack of new trade deals.
USDA Chief Economist Seth Meyer blames the record Ag trade deficit forecast on falling commodity prices, a slower Chinese economy, and the continued strength of the U.S. dollar. But South Dakota Ag Republican John Thune sees it as even more reason to do trade deals to open new markets.
For more information, visit usda.gov.
