Trade Patience More Than a Virtue, It’s Vital

(SAN ANGELO, TX) Speaking to a group of farmers, ranchers, agribusiness, and community leaders, Ambassador Gregg Doud explained that “we have one shot to get this right when we do these deals.” Doud, the Chief Agricultural Negotiator with the U.S. Trade Representative’s office (USTR), delivered the keynote address at the 16th Annual West Texas Legislative Summit on Thursday and explained why a trade deal with China is vital for the ag industry. With 20 percent of American ag income tied to exports, trade represents the best and quickest path to increasing farm profitability. With China currently importing $124 billion of agricultural goods, only 16 percent come from the United States. U.S. soybeans represent the majority of the $20 billion in annual ag exports to Beijing (about $13 billion) while cotton is a distant second. Last year, China imported $5 billion of beef but only $70 million from American cattlemen – which equates to 1.4 percent market share. In June alone, Doud said China imported $1.33 billion in meat products and the U.S. supplied less than four percent of that ($53 million). The imbalance comes as African Swine Fever (ASF) is leading to losses of about 40 percent of the Chinese hog herd, which equals more than all the hogs currently in the United States today. The obvious and unfair trade barriers that China has placed on U.S. producers is what drives the former commodity analyst to fight for fair trade. “I cannot tell you how frustrating that is” Doud exclaimed, but “if it takes a little longer than you think it should, I get it, but we’ve got to get it right.”