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U.S. Wheat Associates Statement on Major Chinese Wheat Purchase

U.S. Wheat Associates (USW) President Vince Peterson issued the following statement about news of Chinese wheat import purchases.

“The USDA report today that Chinese buyers have purchased 340,000 metric tons, or about 12.5 million bushels, of U.S. hard red winter (HRW) wheat for delivery in the 2020/21 marketing year is very good news for U.S. wheat farmers. This is a significant purchase volume and the largest since China implemented retaliatory tariffs on U.S. wheat in March 2018.

“This purchase falls under China’s 9.64 million metric ton tariff rate quota (TRQ). China has agreed to work toward filling its TRQ for wheat imports. As USW has noted, if the changes are in fact implemented, and Chinese millers can respond to market signals, most of the TRQ should be used. U.S. wheat farmers are in a good position to help fill the TRQ given current export prices, relatively low freight rates and the ready supply of the wheat classes China needs.  

“USW appreciates the efforts of both the U.S. and Chinese governments to reach the Phase One trade agreement that has helped re-open the door to U.S. wheat imports by China. We believe that China’s flour millers and growing baking industry want the opportunity to purchase high-quality U.S. wheat classes again and we hope this is only the beginning of a new, more productive trade relationship.”

U.S. Wheat Associates’ (USW) mission is to develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit www.uswheat.org.

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Phase One Trade Deal Should Restore China’s Demand for U.S. Wheat

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are very encouraged by the signing of a Phase One trade agreement with China. Chinese imports of U.S. soft white (SW), hard red spring (HRS) and hard red winter (HRW) wheat classes were trending up before abruptly ending when China implemented retaliatory tariffs on U.S. wheat and other agricultural commodities in March 2018.

“Even though China has huge domestic wheat stocks, they were buying more U.S. wheat because they needed it to meet growing demand for higher quality wheat foods,” said Vince Peterson, President of U.S. Wheat Associates (USW), the organization funded by farmers and the U.S. government to promote wheat exports. “The losses we demonstrated soon after China stopped importing U.S. wheat have only grown since then, so we hope the agreement signed today signals a potential turn-around.”

Adding to the optimism is China’s separate agreement to work toward filling its 9.6 million metric ton (MMT) reduced tariff rate quota (TRQ) for wheat imports. If the changes are in fact implemented, and Chinese millers can respond to market signals, most of the TRQ should be used. For U.S. wheat farmers, the Phase One deal and TRQ compliance would create a very welcome opportunity for Chinese miller customers to once again apply the technical expertise and assistance USW provides to use wheat with specialized end-use applications that distinguishes U.S. wheat from domestic Chinese supplies.

“Wheat farmers have experienced the harm of unfair trading practices at the hands of China for far too long, as reinforced by the recent WTO wins. This step forward in negotiations between the U.S and China is a tremendous way to begin the new year,” stated NAWG CEO Chandler Goule. “As part of its Winter Conference this week, NAWG and its states will hold several meetings on The Hill where it will be stressed to Members and staff the need to continue expanding our international markets, including to swiftly move forward with Phase One of U.S.-China trade deal.”

Re-opening China would be a huge lift for wheat farmers who are still producing a quality product in spite of the income challenges they have faced for several years. USW and NAWG want to thank the negotiators in the Office of the U.S. Trade Representative for their dedicated effort to create this opportunity and we look forward to learning more details about the agreement.

“Our organization and the farmers we represent agree with the Trump Administration that China has not been transparent about its protectionist policies,” Peterson said. “Now it remains to be seen if China will comply fully with its WTO commitments and this new agreement so that trade between our two countries can flourish.”

USW and NAWG are especially pleased that the agreement contains structural changes to how U.S. exporters access the Chinese market. U.S. negotiators should be commended for seeing the opportunity to build on our wins at the WTO against China’s TRQ administration and agricultural subsidy policies by including provisions on administration and transparency of policies.

The additional commitments included in the agreement contain important transparency measures, such as reporting on TRQ awards and operation of subsidy programs in addition to reaffirming commitments on eligibility for access to TRQ.

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About U.S. Wheat Associates. USW’s mission is to develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org. 

About the National Association of Wheat Growers. NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Wheat Organizations Encouraged by Progress on Phase One Deal with China

WASHINGTON, D.C. — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are encouraged by news today that the United States and China have agreed on the text of a “Phase One” trade deal that apparently would roll back tariffs and re-open China’s important market for U.S. agricultural imports.

Earlier this year, China agreed to new policies related to agricultural tariff rate quotas (TRQ), including a 9.6 million metric ton reduced tariff TRQ for wheat imports. China had imported as much as 1.65 million metric tons of U.S. wheat in marketing year 2016/17 and an additional 866,000 metric tons in 2017/18 before implementing retaliatory tariffs in March 2018. We also believe that China’s flour millers and growing baking industry would welcome the opportunity to purchase high-quality U.S. wheat classes again.

We want to thank the negotiators in the Office of the U.S. Trade Representative for their dedicated effort and we look forward to learning more details about the agreement.

About U.S. Wheat Associates

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org. 

About NAWG

NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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U.S. Wheat Associates Urges China to Comply with WTO Agreements Following Second Favorable WTO Dispute Ruling

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the ruling today by a World Trade Organization (WTO) dispute panel that China’s government does not fairly administer its annual tariff rate quotas (TRQ) for imports of corn, rice and 9.64 million metric tons (MMT) of wheat. This decision follows a seperate ruling in late February that determined China provides excessive domestic price supports in excess of its WTO commitments. The U.S. Trade Representative (USTR) brought these disputes to the WTO in 2016, armed with clear evidence that China’s policies distort world trade of those commodities and create an unfair advantage for domestic production.

“With these decisions, we call on the Chinese government to come into compliance with the rules it accepted when it joined the WTO,” said USW President Vince Peterson. “The world now sees that their policies stifle market-driven wheat trade, block export opportunities and force private sector buyers and consumers to pay more than they should for milling wheat and wheat-based foods. We appreciate that the Trump Administration continues to shine a light on these distorting policies by supporting the WTO dispute cases.”

“NAWG applauds the Administration for pressing the WTO to enforce trade rules that ensure fair trade for U.S. wheat growers,” said NAWG CEO Chandler Goule. “Further, we appreciate the work done by those Members of Congress who continued to press on this issue and move the process forward.”

China’s wheat TRQ was established in its WTO membership agreement in 2001. Under that agreement, China may initially allocate 90 percent of the TRQ to government buyers, or state trading enterprises (STEs), with only 10 percent reserved for private sector importers. The private sector typically imports its full portion due to growing demand for flour from different wheat classes with better milling and baking characteristics than domestically produced wheat provides.

However, China’s notifications to the WTO on TRQ usage show an average fill rate of just 25%. The WTO does not require that TRQs fill every year, but it has established rules regarding transparency and administration that are intended to facilitate the use of TRQs.

Considering that China’s domestic wheat prices are significantly more than the landed cost of U.S. wheat imported from the Pacific Northwest, Peterson said the TRQ should be fully used if the system were operating fairly, transparently and predictably as the rules intend.

The facts also argue against potential claims that enforcing the TRQ agreement would threaten China’s food security. China produces more wheat each year than any other single country and currently holds about 50 percent of the world’s abundant wheat supplies. If China met its 9.64 MMT wheat TRQ, its farmers would still produce 90 percent of domestically consumed wheat. Opening the wheat TRQ would also allow private sector millers and food producers to import more of the types of wheat they need, but cannot now obtain, and the benefits would be passed on to China’s consumers.

“Once China meets its obligations under the WTO and the temporary retaliatory tariffs are removed, wheat farmers from the United States and other countries can compete fairly for sales to this growing market,” Peterson said.

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six U.S. wheat classes. For more information, visit the USW website at www.uswheat.org.

NAWG is a federation of 22 state wheat grower associations that works to represent the needs and interests of wheat producers before Congress and federal agencies. Based in Washington, DC, NAWG is grower-governed and grower-funded, and works in areas as diverse as federal farm policy, trade, environmental regulation, agricultural research and sustainability.

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NAWG and USW Welcome Attention on Trade Policy Risks and Opportunities

Washington, D.C. — The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) appreciate the Senate Agriculture Committee holding its “Perspectives on U.S. Agricultural Trade” hearing Sept. 13, 2018, focused on the Trump Administration’s trade agenda. The organizations are encouraged that Chairman Roberts and Ranking Member Stabenow, as well as the members of the Administration who testified today, recognize the challenges farmers face in weathering today’s unique trade policy environment.

 

“We commend the leadership for holding this hearing and we were glad to hear the Administration witnesses acknowledge there is legitimate anxiety in farm country about the impact of retaliatory tariffs on our products,” said Jimmie Musick, NAWG President and a wheat grower from Sentinel, Okla. “We see opportunity for our members from the strong resistance to China’s unfair trade policies. We also recognize the risk to farm income continues to grow the longer this confrontation with China continues and we call on the Administration to do all it can to resolve the dispute as quickly as possible. Finally, we’re grateful to Ambassador Doud for making the grain grading disparity with Canada a top priority in NAFTA.”

 

“In our successful partnership with USDA’s Foreign Agricultural Service, state wheat commissions and U.S. Wheat Associates have worked for many decades to develop markets in China, Mexico, Japan, Europe and dozens of other countries,” said Chris Kolstad, USW Chairman and a wheat grower from Ledger, Mont. “Wheat growers depend on export markets to support wheat prices and we want the Administration to succeed in breaking down trade barriers. We’re also glad that Ambassador Doud and Under Secretary McKinney both noted the importance of negotiating new agreements that work for our farm families and for our overseas customers.”

 

NAWG and USW look forward to final approval of the renegotiated agreement with Mexico that maintains duty free access to its crucial wheat market. The organizations are also encouraging the Administration to rejoin the Trans-Pacific Partnership or quickly negotiate a trade agreement with Japan that keeps U.S. wheat on equal footing with competing supplies from Canada and Australia.

 

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About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 22 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

 

About U.S. Wheat Associates

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

 

Nondiscrimination and Alternate Means of Communications
In all of its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

 

 

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Trade Conflict with China Already Hurting U.S. Farm Families

From March to June over the past three years, Chinese flour milling companies and their importers purchased an average of about 20 million bushels of U.S. wheat, returning well over $145 million to American farm families and grain handlers. Not in 2018, however. Unable to accept the risk of escalating import prices, Chinese customers stopped making new purchases of U.S. wheat last March, after the Chinese government threatened a 25 percent import tariff on U.S. wheat in retaliation to the threat of U.S. tariffs on Chinese imports.

Today, damage to the livelihood of America’s hard-working farm families is no longer just a threat. The exchange of punitive tariffs between Washington and Beijing today represents the next phase of what could be a long and difficult struggle that will likely inflict more pain before we reach an unknown resolution.

U.S. Wheat Associates (USW), the National Association of Wheat Growers (NAWG) and the growers we represent reaffirm our position that unfair Chinese government policies create unnecessary trade distortions that hurt U.S. farmers and other industries. We urged the U.S. government to challenge China’s domestic price support and tariff rate quota compliance that led to cases disputing these policies within the World Trade Organization (WTO). These cases served notice to China and our trading partners that the United States was willing to lead a legitimate effort to enforce existing trade rules — by following those rules.

China did not stop importing U.S. wheat in response to these cases, in part because Chinese demand for our high-quality wheat crops is rapidly growing. The unilateral decision to impose tariffs, however, has already had a direct, damaging effect on U.S. wheat growers.

Wheat growers can only hope that the United States and China will stop trading salvos and we call on both governments to come to a resolution quickly. Farmers are eager to move past this dispute and start trading wheat and other agricultural products again soon.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
In all of its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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Wheat harvest photo
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Give U.S. Wheat Farmers the Freedom to Compete

ARLINGTON, Virginia — The familiar African proverb says that when elephants fight, it is the grass that suffers. Unfortunately for America’s farmers, that grass is the wheat growing in their fields as the big guys in Washington, D.C., and Beijing escalate their trade fight.

China’s state-run importing agency and private flour millers bought an average of more than 1.1 million metric tons of U.S. wheat the past five years because our farmers produce higher quality grain than China can grow on its own. Following the Trump Administration’s announcement of new tariffs on $50 billion of imported Chinese goods, China hit back with tariffs of its own, including a 25 percent tariff on U.S. wheat imports. In response, the White House is ordering trade officials to draw up a list of $200 billion worth of Chinese goods that would be hit with 10 percent tariff on top of the 25 percent tariffs already promised. In a trade war, agriculture always gets hit first and the effects of these tariffs could prove devastating for farmers.

No one in China will be hurt if the retaliatory U.S. wheat tariff is implemented. China has huge amounts of stored wheat and they can purchase what they need from Australia, Canada or even Kazakhstan, although Chinese consumers will miss the opportunity to experience higher quality products made from U.S. wheat. Instead, the outcome is likely to further erode the incomes of farm families who strongly support addressing the real concerns about China’s trade policies.

According to the USDA, net cash wheat farm income is projected to be down more than 21 percent this year compared to last. U.S. wheat growers are not in the business of ceding a market like China that wants to buy their crop and could buy so much more of it. That is why in 2016, U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) called for World Trade Organization (WTO) cases intended to push China to meet its WTO commitments on domestic support and tariff rate quota management. We are happy that the Trump Administration supports and is pursuing those cases.

USW and NAWG know that farmers still want our organizations to keep fighting for fair opportunities to compete in China and other countries. They would prefer, however, to see our government do that first within the processes already in place.

Instead, the Administration is doubling down on a tactical policy that makes an already risky business of agriculture even more volatile. Policies like the ones being proposed will only make times harder for farmers, and the Administration’s vague promises of protection for the farmers we represent offers little consolation.

Our country’s continuing agricultural trade surplus is proof that America’s farmers can compete successfully in the world based on the quality and value of what they produce, given the freedom to do so.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
In all its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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Farm Organizations Look for Negotiations with China to Achieve Durable Market Access

WASHINGTON, D.C. — Eighteen U.S. agricultural organizations sent a letter to President Trump on May 31, 2018, expressing hope that he will “prioritize negotiations with China to resolve many longstanding obstacles to U.S. agricultural exports while avoiding mutually destructive tariffs.”

The organizations agree that there are certainly major problems in the U.S. trade relationship with China, and they stated that the Trump Administration has “rightfully identified many unfair trading practices by China that harm the U.S. economy.” The groups want to see a “major recalibration of our trade relationship with China” that would result in U.S. producers “receiving the full benefits of China’s accession to the World Trade Organization.”

Instead of seeing tariffs imposed, the groups support “establishing normal commercial relations with China based on predictability, transparency, and market openness.” These organizations hope that there will be serious, productive, substantive negotiations that will result in “durable market access” for U.S. producers and “policymaking transparency” by Chinese authorities.

“The reputation of U.S. agriculture as a reliable supplier to the world is critical to the future of the industry,” the groups wrote. “We strongly encourage negotiations leading to open and predictable trade, particularly in cooperation with other countries in the region that share our concerns about China’s mercantilist policies.”

The following organizations signed the letter to President Trump:

American Farm Bureau Federation
American Soybean Association
National Association of Wheat Growers
National Barley Growers Association
National Corn Growers Association
National Council of Farmer Cooperatives
National Sorghum Producers
National Sunflower Association
United Fresh Produce Association
U.S. Canola Association
U.S. Dry Bean Council
U.S. Grains Council
U.S. Soybean Export Council
U.S. Wheat Associates
USA Dry Pea & Lentil Council
USA Poultry & Egg Export Council
USA Rice
Western Growers

USW’s mission is to develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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China’s Response to New U.S. Tariffs Will Hurt U.S. Wheat Farmers

ARLINGTON, Virginia — With the announcement today that China intends to retaliate against the latest proposed U.S. tariffs, hard-working U.S. farmers are clearly in the line of fire from what looks more and more like an escalating trade war with China.

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) believe wheat farmers are going to get hurt by the 25 percent tariffs China quickly proposed after the United States government announced new tariffs on $50 billion of imported Chinese goods on April 4, 2018.

“People may not know that China imported more than 61 million bushels of U.S. wheat in marketing year 2016/17, making it our fourth largest buyer in the world,” said USW Chairman Mike Miller, a wheat farmer from Ritzville, Wash. “Farmers across the country have invested a lot of money and time over the years to develop a Chinese market that has great potential to buy even more American wheat. Now that effort is in jeopardy at a time when big global supplies have already pushed farm gate wheat prices down to unsustainable levels.”

“America’s wheat farmers are experiencing several hardships and adding a 25 percent tariff on exports to China for U.S. wheat is the last thing we need during some of the worst economic times in farm country,” stated NAWG President Jimmie Musick a wheat farmer from Sentinel, Okla. “Continued drought, low prices and trade uncertainty adds pressure to passing a Farm Bill on time as well as creating uncertainty for producers and lenders. In a trade war, agriculture is always the first target. The Administration can support rural Americans by working with Chinese officials to avoid these damaging tariffs.”

The proposed Chinese tariffs would further erode the incomes of farm families who strongly support addressing the real concerns about China’s trade policies. USW and NAWG know that farmers still want our organizations to keep fighting for fair opportunities to compete in China and other countries. They would prefer, however, to see our government do that within the processes already in place, as the Administration has done by challenging China’s domestic support and tariff rate quota policies through World Trade Organization (WTO) dispute cases.

We have also said that the proposed U.S. tariffs represent unilateral actions that violate WTO rules. We urge the Administration to pull back from this dangerous course that puts vulnerable U.S. industries like wheat production at risk and in a larger sense undermine the established rules-based global trading system.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S. – 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Wheat Grower Organizations: Enforcing Trade Rules is Best Done Within the Rules

ARLINGTON, Virginia — While U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) understand and support the need to enforce international trade rules, we are very concerned about the implications of the Trump Administration’s decision today to impose more than $60 billion in tariffs on Chinese goods under Section 301 of the Trade Act of 1974.

We agree that unfair Chinese government policies create unnecessary trade distortions that hurt U.S. farmers and other industries. Our organizations urged the U.S. government to challenge China’s domestic price support and tariff rate quota compliance that led to cases disputing these policies within the World Trade Organization (WTO). Such cases served notice to China and our trading partners that the United States would lead a legitimate effort to enforce existing trade rules — by following those rules. We believe that it is in the nation’s best interests, and the interests of the wheat farmers we represent, to challenge trade distorting policies to the maximum extent possible within WTO rules.

It is unfortunate that the well-intentioned decision to challenge other Chinese trade policies has been implemented in a way that violates the rules outlined in Article II of the GATT Agreement. Recent actions including withdrawal from the Trans-Pacific Partnership and implementing steel and aluminum tariffs on the basis of national security have already undermined U.S. leadership in international trade. Now this action further erodes historical support for rules-based trade policies, even though China will likely bring a case against the tariffs within the WTO dispute settlement process.

In addition, USW and NAWG fear that applying unilateral tariffs could invite retaliation that, as recent history shows, would be aimed at U.S. agricultural products. This could very well include China throwing up road blocks to U.S. soybeans, wheat, corn and other commodity imports, which would cut into already unsustainable farm incomes.

We welcome the administration’s strong support for enforcing trade rules. We only wish it would have challenged China’s state-driven policies in ways that complied with and strengthened existing trade rules.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S. – 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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