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Signing Moves USMCA Toward Benefits for U.S. Wheat Growers

WASHINGTON, D.C. — Today’s signing of the renegotiated U.S. Mexico Canada Agreement (USMCA) is a welcome step toward a final agreement that will provide much needed reassurance for wheat growers and the entire U.S. agricultural industry. U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) want to thank U.S. Trade Representative Robert Lighthizer for his steadfast efforts throughout USMCA development process as well as Secretary of Agriculture Sonny Perdue, Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney, and Lighthizer for working with Speaker Pelosi and other Congressional leadership to find a path forward.

“U.S. wheat growers need to continue trading freely and fairly with Mexico, our largest international customer, and this agreement will finally end that uncertainty,” said Doug Goyings, USW Chairman and a wheat farmer from Paulding, Ohio. “In addition, if U.S. farmers want to deliver wheat across the border to a Canadian elevator, and that wheat is on Canada’s varietal registration list, under USMCA it will not be downgraded. We hope that this agreement will be approved and implemented quickly so we can move on to negotiating more high-quality trade agreements like USMCA that benefit our economy and our trading partners.”

“NAWG hopes that today’s news will motivate Congress to take a vote on USMCA before the end of the year,” stated NAWG President and Lavon, TX wheat farmer Ben Scholz. “Wheat growers view this as a major step in getting USMCA over the finish line and hope that it will help those Members who are undecided to vote ‘yes’ on this critical trade deal.”

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 Welcomes Japan’s OK of U.S.-Japan Trade Agreement

A Statement from Vince Peterson, President, U.S. Wheat Associates:

“Approval of the U.S.-Japan Trade Agreement is one of the most important trade policy victories in many years for U.S. wheat farmers and their customers in Japan. U.S. Wheat Associates appreciates the swift consideration of the agreement by Japan’s National Diet and offers its thanks again to our trade negotiators and USDA officials who understand why it was so vital to see U.S. wheat exports gain equal footing again with competing supplies from Canada and Australia.”

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.

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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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Long-Sought Opening of Brazilian Wheat TRQ Ahead

ARLINGTON, Virginia — A significant impediment to U.S. wheat sales to the large Brazilian market is likely to end soon. Brazil’s government has announced it intends to implement a tariff rate quota (TRQ) allowing up to 750,000 metric tons (MT) of wheat to be imported duty-free from countries outside the Mercosur trade agreement.

Brazil first agreed to this TRQ some 24 years ago when it joined the World Trade Organization (WTO). The Brazilian government is now moving forward with developing a final process and date for implementing the TRQ.

Through U.S. Wheat Associates (USW) and the U.S. government, wheat farmers have worked and negotiated for several years with Brazil’s government to open the TRQ and create a more open market there for U.S. hard red winter (HRW) and soft red winter (SRW) wheat.

“Brazil is a quality-focused wheat market and its flour millers recognize that U.S. wheat can help them better meet their customers’ needs,” said USW President Vince Peterson. “Opening the TRQ will give those millers more consistent access to our wheat classes while still having the option to source from other countries. That is how the market should work and we welcome this opportunity.”

“This is a perfect example of how fulfilling commitments can work for all trading partners,” said Doug Goyings, USW Chairman and a wheat farmer from Paulding, Ohio. “We want to recognize Ambassador Gregg Doud, our Chief Agricultural Negotiator at the Office of the U.S. Trade Representative, and USDA Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney, as well as the career staff of USDA and USTR for their focus on this issue. They have raised it multiple times with their counterparts in Brazil.”

Brazil is the fourth largest wheat importer in the world but Argentina and other countries in the Mercosur agreement have had a competitive advantage with mostly unlimited duty-free access to the market. Wheat imports from countries outside the Mercosur agreement including the United States are subject to a 10 percent tariff. However, USW has always conducted activities in Brazil to keep its millers and bakers informed about the quality and value of U.S. wheat. As a result, when Brazil opened provisional TRQs in 2008, 2013 and 2014 because its Mercosur partners had wheat supply challenges, U.S. HRW and SRW made up more than 80 percent of imports.

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USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of wheat for U.S. 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.

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Joint Statement – U.S.-Japan Tariff Agreement Confirms Equal Access for U.S. Wheat

WASHINGTON, D.C. — The text of the U.S.-Japan tariff agreement signed today in Washington, D.C., confirms that the agreement will provide imported U.S. wheat the same preferential advantage that is now given to Canadian and Australian wheat under the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). Japan’s legislature must approve the agreement before it is implemented.

“As we hoped, the text confirms that the agreement will put U.S. wheat back on equal footing with wheat from Canada and Australia when it is implemented,” said U.S. Wheat Associates (USW) President Vince Peterson, who attended the event at the White House. “In addition, Japan has agreed to open country specific quotas for U.S. wheat and wheat product imports. The Trump Administration and negotiators for both countries clearly understood what was at stake for U.S. wheat farmers and made sure to have our backs in this agreement.”

NAWG President Ben Scholz, far left, flanked by USW President Vince Peterson welcome the signing Oct. 7, 2019, of the U.S.-Japan Tariff Agreement at the White House.
Official White House Photo by Shealah Craighead

“NAWG is thrilled to be present during the signing of the U.S.-Japan tariff agreement, a major milestone for wheat growers,” said National Association of Wheat Growers (NAWG) President and Lavon, Tex., farmer Ben Scholz. “We would like to thank staff and leaders at USTR, USDA, and the Administration for working with the wheat industry as this agreement nears the finish line.”

As USW and NAWG noted when President Trump and Prime Minister Abe announced the tariff agreement last month in New York, Japan’s effective tariff on imported U.S. wheat will drop to the same level Japanese flour millers now pay for Canadian and Australian wheat. Since the CPTPP agreement entered into force last December, market factors have kept U.S. wheat competitive. Without this new agreement, however, U.S. wheat imports would have become less and less cost competitive to the point that Japan’s flour millers would have no other choice than to buy more of the lower cost wheat from the CPTPP member countries.

U.S. wheat represents about 50 percent of all the wheat Japan imports each year, currently valued at more than $600 million. That volume represents more than 10 percent of total annual U.S. wheat exports, generally benefiting all U.S. wheat farmers and specifically farmers from the Pacific Northwest to the Northern and Central Plains states.

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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 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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Wheat Industry: Tariffs as Political Weapons Cause Collateral Damage

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are shocked and dismayed by President Donald Trump’s unilateral step to impose a five percent tariff on all Mexican goods imported by the United States. This action threatens to undermine approval of the U.S-Mexico-Canada Agreement and puts crucial wheat demand in Mexico at great risk.

“We respectfully ask the Administration not to implement these new tariffs. The potential fallout for farmers would be like struggling to survive a flood then getting hit by a tornado,” said Chris Kolstad, Chairman of USW and a wheat farmer from Ledger, Mont.

Bad feelings abounded in Mexico after the President publicly threatened to withdraw from NAFTA and imposed duties because certain Mexican products were called national security risks to the United States. Their government and industries, including flour millers, set out to broaden their supply sources. In 2018, Mexico increased its total wheat imports significantly, but U.S. wheat imports actually declined that year.

“With progress on the USMCA — most recently cancellation of the steel and aluminum tariffs — our customers in Mexico have been importing more U.S. wheat,” Kolstad said. “In a very disheartening coincidence, our organization is holding a conference next week with our Mexican customers partly to remind them how important they are to us. Of course, the cost of the conference is funded by the Agricultural Trade Promotion program that was awarded because U.S. wheat farmers proved they were being hurt by retaliatory tariffs.”

“We call on the President to rescind this threat immediately,” said Ben Scholz, President of NAWG and a wheat farmer from Lavon, Tex. “We’ve been hit by low prices; we’ve been hit by rain and flooding that is hurting what was an excellent wheat crop; and now we’ve been hit again by the actions of our own government. We need to end indiscriminate use of tariffs now, one way or another.”

About USW 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.

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Wheat Leaders Pleased to See Sec. 232 Tariffs Removed, Call on Congress to Approve USMCA

ARLINGTON, Virginia — The announcement today that Section 232 tariffs on steel and aluminum imports from Mexico and Canada will be removed is an important step toward approval of the U.S.-Mexico-Canada Agreement on Trade (USMCA), say farmer leaders of U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG).

“We thank the Administration for recognizing that these tariffs are hindering trade agendas that open overseas markets,” said USW Chairman Chris Kolstad, a wheat farmer from Ledger, Mont. “We also encourage repealing all the remaining steel and aluminum tariffs and oppose new tariffs on autos under Section 232. New tariffs would encourage our trading partners to retaliate against U.S. farmers and agricultural exports and further weaken international trade rules.”

The USMCA agreement includes important provisions for wheat farmers. USMCA retains tariff-free access to imported U.S. wheat for our long-time flour milling customers in Mexico, a crucial step toward rebuilding trust in U.S. wheat as a reliable supplier in this important, neighboring market. In addition, the USMCA makes important progress towards more open commerce for U.S. wheat farmers near the border with Canada. The updated USMCA agreement would enable U.S. varieties registered in Canada to be afforded reciprocal treatment. While there are remaining challenges, we applaud the Administration for negotiating this critical provision in the USMCA and taking a big step towards reciprocal trade along the U.S.-Canadian border.

“Leaders in Congress made it clear that the USMCA agreement would never be approved unless the tariffs on Mexican and Canadian steel and aluminum were removed,” said NAWG President Ben Scholz, a wheat farmer from Lavon, Tex. “We want to remind members of Congress that the farmers in their states and districts expect support for this agreement. We are certain USMCA will bring jobs and economic prosperity to rural America and across the United States.” 

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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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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Wheat Farmers Welcome New Export Opportunity from Trump Administration Agreement with Brazil

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome today’s announcement by President Trump and Brazilian President Jair Bolsonaro that Brazil has agreed to implement a duty-free tariff rate quota (TRQ) for wheat, a longstanding obligation under Brazil’s World Trade Organization (WTO) commitments. This agreement opens an annual opportunity for U.S. wheat farmers to compete on a level playing field for 750,000 metric tons (about 28 million bushels) of wheat under the TRQ.

“We are grateful to the Trump Administration for championing the interests of U.S. farmers and specifically to Chief Agricultural Negotiator Gregg Doud and USDA Under Secretary Ted McKinney for prioritizing the issue of Brazil’s TRQ commitment,” said Chris Kolstad, USW Chairman and a wheat farmer from Ledger, Mont. “This new opportunity gives us the chance to apply funding from the Agricultural Trade Program and other programs to build stronger relationships with Brazilian millers and a more consistent market there for U.S. wheat.”  

Brazil was the largest wheat importer in Latin America and the fourth largest in the world in marketing year 2017/18. Most imports originate duty-free from the Mercosur countries of Argentina, Paraguay and Uruguay. Wheat from all other origins requires payment of a 10 percent duty. Brazil agreed to open the TRQ to all origins, including the United States, in 1995, but then notified the WTO that it wanted to remove the TRQ. Those negotiations were never concluded. Brazil did open the TRQ temporarily in 2008, 2013 and 2014 when there was a shortage of wheat within Mercosur. During those years U.S. wheat made up more than 80 percent of imports from outside Mercosur.

“This is a big win for U.S. wheat farmers, the Trump Administration, and members of Congress who have pushed for action on this issue,” said Ben Scholz, NAWG President and a wheat farmer from Lavon, Tex. “I’m glad to see Brazil fulfill its commitment and look forward to a stronger trading relationship between us. When countries remain in compliance with the WTO, like we see here, it creates a level playing field for wheat for both countries.”

In some years, Brazil has imported as little as 115,000 metric tons of U.S. hard red winter and soft red winter wheat. That is why USW has worked toward implementation of Brazil’s wheat TRQ for a decade. USW plans to invest export market development funding in technical support and trade servicing to help demonstrate the quality and value of U.S. wheat for millers and bakers.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of wheat for U.S. 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.

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.

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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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Trade Mitigation Funds Will Benefit Export Market Development for U.S. Wheat Growers

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are pleased that U.S. wheat growers now have the opportunity to increase efforts to expand export market access with USDA’s Jan. 31 announcement awarding $200 million to 57 organizations through the Agriculture Trade Promotion Program (ATP). USW was awarded $8.25 million, which will be distributed over the next three years.

Administered by USDA’s Foreign Agricultural Service (FAS), the ATP is one of three USDA programs within the Trump Administration’s trade mitigation package—created to ease the effects of recent trade retaliation against U.S. farmers and exporters. The funds will support export market development programs led by U.S. trade associations, cooperatives and other industry-affiliated organizations.

“U.S. wheat growers are facing tough times right now with the impact of retaliatory tariffs putting a strain on the export market and threatening many decades worth of market development,” said Chris Kolstad, USW Chairman and a wheat grower from Ledger, Mont. “We appreciate the recognition that farmers need help to manage this additional risk. This program is a positive step forward and our people are ready to get to work.”

“With the United States exporting half of the wheat crop it grows, programs like the Agricultural Trade Promotion Program (ATP) are crucial for our farmers to remain competitive in the global market,” stated NAWG President and Sentinel, OK wheat farmer Jimmie Musick. “We welcome today’s news that our sister organization U.S. Wheat Associates was awarded significant funding for trade mitigation activities. This funding will provide some relief to the adverse impact wheat has felt since U.S. placed tariffs on Chinese goods, opening the door for retaliation. We hope to see these affected markets opened again quickly.”

U.S. wheat growers have a long history of recognizing the value of export market development by supporting the successful public-private partnership between USW’s state wheat commission members and FAS. Each year, growers contribute a portion of their wheat sales which qualifies USW to apply for matching funds through FAS programs like the Market Access Program (MAP) and the Foreign Market Development (FMD) program.

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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 21 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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USW President Urges USTR to Help Protect Wheat Exports to Japan Through Trade Negotiations

WASHINGTON, D.C. — When the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) enters into force Dec. 31, 2018, Japan will grant preferential access to wheat export countries that are in the agreement. This has the potential to slash sales to a crucial market for U.S. wheat farmers. That is why U.S. Wheat Associates (USW) President Vince Peterson today urged the U.S. Trade Representative (USTR) to seek a rapid solution to this vulnerability through trade negotiations with Japan.

Testifying Dec. 10 at a USTR public hearing and through written testimony, Peterson thanked the Trump Administration for making negotiations with Japan a priority and explained the risk to wheat export sales without a quick U.S.-Japan agreement.

The CPTPP will grant preferential access to Canadian and Australian wheat exports, he said, by reducing the effective tariff on their wheat. Eventually, this reduction will be about $70 per metric ton, or 45 percent below the current effective tariff applied to U.S. wheat. Because Japan has no obligation to change this tariff reduction schedule, Peterson said it will likely shut most U.S. wheat exports out of the Japanese market and undo decades of market development work.

“U.S. Wheat Associates has had an office in Tokyo for more than 60 years,” he said. “We have invested countless hours and millions of hard-earned farmer dollars and federal export market development program funds building this market. During that time, the Japanese milling industry has become an indispensable partner for U.S. wheat farmers.”

Peterson added that over the last five marketing years, Japan is the largest, most reliable and valuable market for U.S. wheat and consistently returns almost $1 billion per year to U.S. wheat farmers and the grain trade.

“All that is at risk without a U.S.-Japan agreement that quickly ends the preference Canada and Australia gain as members with Japan of the CPTPP,” Peterson said. “We thank you for understanding the plight of these farmers, who already face severe trade disruptions in other markets.”

Looking ahead, Peterson added, “U.S. wheat farmers and Japan’s flour milling industry hope that we can maintain provisional equivalence for U.S. wheat imports while our two countries conduct ongoing, good faith negotiations. And we urge the Administration to act quickly to save our market in Japan.”

For more information about what is at stake for U.S. wheat farmers under the CPTPP agreement, visit the USW website at https://www.uswheat.org/policy/trade-negotiations/ and click on “Trans-Pacific Partnership (TPP).” Use this link to access USW’s written submission to the USTR on trade negotiations with Japan.

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.

 

Vince Peterson, President, U.S. Wheat Associates.

 

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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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