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U.S. Wheat Associates Welcomes New Colleague in Tokyo

TOKYO, Japan — U.S. Wheat Associates (USW) Tokyo announces that Ms. Makiko Ochi has joined the staff as Program Assistant/Accountant. Ms. Ochi will replace Ms. Sadako Ishida who plans to retire in late September 2018 after many years working with USW to promote U.S. wheat exports to Japan.

 

“We are very pleased Ms. Ochi is now applying her experience as a manager at a large securities organization and as a skilled communicator to our work on behalf of U.S. wheat farmers here in Japan,” said USW Japan Country Director Wataru Utsunomiya.

 

Ms. Ochi most recently worked as a freelance drama and dance critic in Japan, Asia and Europe after eight years in management at Daiwa Institute of Research, one of Japan’s largest securities firm. She earned a bachelor’s degree in law at Hitotsubashi University in Tokyo.

 

Compared to Japan, no government organizations, millers or processors in any other country invest so much to produce the highest quality, most wholesome wheat foods possible for its consumers. USW and its legacy organizations, with support from state wheat commissions and USDA’s Foreign Agricultural Service (FAS) export market development programs, have maintained an office and staff serving Japan’s sophisticated wheat milling and food industry since 1956. In turn, Japan represents a consistently strong market for high-quality U.S. soft white (SW), hard red spring (HRS) and hard red winter (HRW) wheat.

 

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 FAS.

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 Makiko Ochi

 

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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Wheat Organizations Continue to Support an End to Trade War as Administration Offers Help for Farmers

ARLINGTON, Virginia — The Trump Administration announced today that it would provide $12 billion to help farmers cope with the results of the current trade dispute ignited by new U.S. tariffs.

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are glad that the Administration recognizes farming as a risky business and acknowledges that farmers need help to manage the additional risk from its trade policies. However, our concerns still lie in a lengthy trade war that will cause long-term, irreparable harm to U.S. agriculture. We urge the Administration to recognize this self-inflicted damage and to end the trade war immediately as well as to work within the rules-based trading system in partnership with like-minded countries to address serious problems in the global economy.

While tariffs aren’t the answer, the wheat industry greatly appreciates the Administration’s efforts to push back on China’s unfair trade practices through dispute settlement cases at the World Trade Organization. The policies being challenged hurt U.S. farmers and have undermined trust in the rules-based trading system. President Trump understands that the farm economy is struggling and is working to improve the livelihoods of growers across the country through these efforts.

 

Agriculture needs strong trading partners, so we also encourage the Administration to rejoin the Trans-Pacific Partnership and finalize NAFTA negotiations so that the U.S. Trade Representative can focus on new trading partners that will be as important as ever. These actions will have lasting benefits to wheat growers across the country.

To repeat, this damage is self-inflicted, so the Administration is right to take steps to address it, but the next step should be ending the trade war. We will also be closely engaged with Administration officials as the details of the announcement made today are developed.

 

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.

 

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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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Staff Promotions in Hong Kong and Beijing

Hong Kong — U.S. Wheat Associates (USW) has promoted Ms. Shirley Lu to Country Director, China, and Ms. Kaiwen Wu to Market Specialist China. Ms. Lu is based in USW’s North Asia Regional Office in Hong Kong and Ms. Wu is based in the USW Beijing office. The changes follow the retirement earlier this year of long-time USW Country Director Andy Zhao

 

Shirley Lu, USW Country Director, China

Ms. Lu served as a wheat buyer and seller with a flour miller and a trading company in the People’s Republic of China before joining USW in 2012 as Market Specialist.

 

“In a previous position, Shirley was instrumental in the first private purchase of U.S. wheat in the early days of the WTO-mandated quota system,” said USW Regional Vice President Jeff Coey. “Given her knowledge of the Chinese market and the very high level of competence she has demonstrated since she joined USW, elevating Shirley to Country Director is a natural move.”

 

“Even though working in this market is very complicated, it is always about people — and working with good customers is always a pleasure,” Ms. Lu said.

 

Ms. Wu joined USW as a Receptionist in Beijing in 1996, and eventually became Office Manager.

Kaiwen Wu, USW Market Specialist, China

 

“Kaiwen’s personal efficiency and knowledge of our trade service and technical support activities has earned the respect of every customer and prospect in the Chinese milling and wheat foods industries,” Coey said. “We are certain her transition to the Marketing Specialist position will be seamless.”

 

“Over the years with U.S. Wheat Associates, I have learned that the American wheat farmers we represent are lovely people to be with,” Ms. Wu said. “That is one of the most important reasons why I have enjoyed working for them for so many years.”

 

China imported more than 61 million bushels of U.S. wheat in marketing year 2016/17 (June 1 to May 31), making it the fourth largest buyer of U.S. wheat in the world that year. USW and U.S. farmers have made a substantial investment over the years to develop a Chinese market that has great potential to buy even more U.S. wheat. Unfortunately, the exchange of tariffs and retaliation between the two countries has stopped that trade dead in its tracks.

 

USW has urged the Trump Administration to pull back from a dangerous course that puts vulnerable U.S. industries like wheat production at risk and, in a larger sense, undermines the established rules-based global trading system. However, USW will continue its market development work in China in hopes that more active trade in U.S. originated wheat will resume.

 

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 FAS.

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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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U.S. Wheat Associates Launches New Website

ARLINGTON, Virginia —U.S. Wheat Associates (USW) Headquarters Office in Arlington, Va., introduced a new look and organization to its website, www.uswheat.org, on Monday, July 16, 2018.

“The new website emphasizes the importance of the U.S. wheat farmers we represent, their overseas customers and the reputation of U.S. wheat as an essential ingredient in hundreds of wheat foods around the world,” said USW Assistant Director of Communications Amanda Spoo. “The site is now organized to make it easier for visitors to access many of the site’s most popular sections and to improve access from mobile devices.”

“How we communicate with our customers and stakeholders needs to reflect the high quality and reliable performance of U.S. wheat and build trust in U.S. wheat farmers,” said Vice President of Communications Steve Mercer. “We believe the new site does that effectively.”

The website includes new features and information and is organized in six sections:

  • About Us introduces USW and features information about its farmer board of directors, staff and expanded information about its 17 office locations and the countries they serve.

 

  • Market and Crop Information is home to a familiar set of reports, including the popular Price Report and Charting Tool section, Harvest Reports, Crop Quality, Supply and Demand and Commercial Sales. A new “Ask the Expert” feature allows site visitors to confidentially seek answers to questions about contract specifications, wheat quality, milling and end-product uses, and flour quality.
  • Working with Buyers describes the type of activities USW conducts with its customers, the six U.S. wheat classes and their uses, wheat industry terms, as well as U.S. wheat grade and non-grade factors; a new Resources section for buyers, millers and end-product processors is also featured.
  • Who We Represent introduces the state wheat commission organizations that help fund USW activities, highlights the world class educational partners that work with USW to provide short courses and seminars, and summarizes successful activities with customers.
  • Policy is an expanded section focused on how USW and the wheat farmers it represents are working to improve market access, monitor trade agreement negotiations, promote scientifically sound regulation and support the public/private partnership between farmers and USDA’s Foreign Agricultural Service.
  • News and Events includes new features and information including a “blog” version of USW’s “Wheat Letter” newsletter, expanded information and registration for biennial marketing conferences and board meetings, and “Trigonoticias,” USW’s Spanish language newsletter.

In addition, there are newly designed pages that summarize USW’s news and information in Spanish, French, Arabic, Traditional Mandarin and Simplified Mandarin.

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
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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U.S. Wheat Industry Commitment to Philippines Milling Industry Returns Export Sales Increase

ARLINGTON, Virginia — Sales of U.S. hard red spring wheat got a boost recently after a delegation of four leaders from the Philippine flour milling industry traveled to Oregon, Washington D.C. and Washington state June 16 to 24, 2018.

U.S. Wheat Associates (USW) sponsored the delegation with funding from USDA’s Foreign Market Development export programs and support from wheat commissions In Oregon and Washington state. The delegates met with state wheat commissions, producers and grain traders, and visited a port loading facility and a Federal Grain Inspection Service (FGIS) dockside laboratory.

“Together, we demonstrated that these wheat buyers were likely to see basis prices increase for dark northern spring wheat with 14 percent protein,” said USW Regional Vice President Joe Sowers, who is based in Manila, Philippines, and accompanied the delegation to the United States. “With first-hand knowledge of the new crop conditions, one of the buyers purchased a total of almost 100,000 metric tons of old crop U.S. hard red winter and soft white wheat, valued at more than $30 million, during and after the visit.”

Sales of U.S. wheat to the Philippines set a record 2.7 million metric tons (MMT) in marketing year 2016/17 (June 1 to May 31). In 2017/18, however, competitively priced Canadian spring wheat displaced nearly 400,000 MT of U.S. hard red spring (HRS). Nevertheless, continued strength in overall demand pushed U.S. wheat sales to the second highest level in history, just short of 2.6 MMT.

Wheat food consumption is growing in the Philippines and U.S. wheat farmer investments in training millers and end product manufacturers has helped the country’s wheat foods industry achieve world class sophistication with a strong preference for U.S. wheat that now represents 93 percent of total milling wheat imports. The Philippines is now the third largest market in the world for U.S. wheat exports.

Sowers said this delegation included experienced leaders that want to capitalize on what they learned in part to fight for extended protection from low priced Turkish flour exports to their country.

In 2012, Turkish flour dumped at prices well below the price of unprocessed soft milling wheat cut Philippine millers out of more than 10 percent of the flour market representing more than 200,000 metric tons of lost U.S. wheat imports. After several years of legal research and hearings, including substantial support from U.S. wheat farmers and USW, in late 2014, the milling industry won government support for tariff protection from cheap Turkish flour imports. However, the anti-dumping tariffs will sunset in 2019, leaving the Philippine millers unprotected from predatory Turkish flour import prices once again.

Meetings with USW and officials in Washington, D.C., helped reassure these milling executives that they have strong U.S. support that will help them establish a strategy for winning an extension of anti-dumping tariffs on Turkish flour. That outcome will help clear the way for a substantial increase in U.S. soft white wheat exports to the Philippines.

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
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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African Wheat Buyers Visit U.S. Wheat Industry

U.S. Wheat Associates (USW) anticipates new opportunities to export more U.S. hard red winter (HRW) wheat to countries in Sub-Saharan Africa. To ensure key wheat buyers in the region get the latest information they need about HRW quality and value, USW sponsored a delegation of flour milling executives from Nigeria, South Africa, Tanzania and Liberia to Texas, Oklahoma and Kansas June 11 to 21, 2018. Funding for the visit comes from USDA’s Foreign Market Development export programs with support from wheat commissions in those states.

The countries represented in this delegation are important markets for U.S. hard red winter (HRW) wheat, with higher import volumes in Nigeria and South Africa. The buyers first visited the Port of Corpus Christi, hosted by the Texas Wheat Producers Board. With hosts from the Oklahoma Wheat Commission, they visited country elevators, the Tulsa Port of Catoosa and experienced HRW harvest on Schieber Farms near Ponca City. While in Kansas, the flour millers toured the Grain Craft Wheat Quality Lab in Wichita, the Kansas Wheat Innovation Center and IGP Institute in Manhattan and Cargill Elevator and wheat harvest near Salina.

Kansas offers a good example of the opportunity these buyers represent for HRW wheat growers. Aaron Harries, Vice President of Research and Operations at Kansas Wheat, said Nigerian flour millers continue to be extremely good customers for Kansas wheat farmers.

“About half of the Kansas wheat crop is exported every year, and Nigeria has been a top buyer in recent years,” he said. “They love the consistent quality they get in wheat from the U.S. We want to be able to grow our market share in the Sub-Saharan region and build the same relationship of trust with our buyers in South Africa.”

U.S. wheat farmers, through trade servicing and technical support by USW helped establish flour milling as a highly successful industry in the west African nation of Nigeria. Hard red winter (HRW) became the standard source of flour for pan bread and instant noodles there. Demand for soft red winter (SRW) flour for snack foods grew together with durum for quality pasta.

Nigeria remains among the top volume customers of U.S. wheat, including more than 43.2 million bushels (1.18 million metric tons) of HRW and 8.3 million bushels (226,000 metric tons) imported in marketing year 2016/17 (June to May). Unfortunately, that volume is down significantly from previous years as lower priced Russian wheat gained market share in this quality conscious but cost sensitive market.

U.S. HRW wheat remains the dominant source of flour to make instant noodles and wet pasta in Nigeria and a key ingredient as a blending wheat for pan bread flour. USW will continue to keep buyers informed about U.S. wheat quality and a long-term effort to provide regular trade service, including this annual trade team visit, as well as training and technical assistance to the major Nigerian flour milling companies.

South Africa is a smaller market than Nigeria, but annual per capita wheat consumption is the highest in Sub-Saharan Africa. Though it varies widely year to year, South Africa produces about 50 percent of its 3.5 MMT annual wheat consumption. Wheat breeders and flour millers are working together to develop improved protein varieties of wheat for South African farmers so it can be blended with imported wheat. Millers prefer imports of HRW and similar classes of German and Argentinian wheat and tend to buy more of whatever is the least expensive. They are also consistent SRW buyers.

U.S. HRW was much more competitive the past two marketing years. In fact, South African millers imported HRW for the first time in five years in 2016/17. USW kept up the momentum in that marketing year by bringing representatives from a prominent milling company to the United States to observe production and be even better prepared to take advantage of favorable prices this marketing year. Although their pace of imports is down, South African millers have kept HRW in their blends again this year.

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
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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Andres Saturno Joins U.S. Wheat Associates in South American Region

SANTIAGO — U.S. Wheat Associates (USW) is happy to announce that Andres Saturno has joined its staff as a Technical Specialist in its South American region. Saturno started his position July 9, 2018, and is based in USW’s Santiago office.

“We are very pleased to have Andres Saturno on board as the new Technical Specialist for the region,” said USW Regional Director Miguel Galdos. “He will be a valuable part of helping U.S. Wheat Associates carry out its mission and fulfill its commitment to increase technical assistance in the region.”

Saturno has more than 10 years of experience in the milling industry, most recently working as the head of milling production for a mill in Honduras. Prior to that role, he spent time working in various milling and engineering positions, as well as consulting and teaching. Saturno is a native of Venezuela and earned a milling engineering degree from Venezuela’s Universidad Panamericana Del Puerto.

In his role at USW, Saturno will work closely with customers in South America and their technical staff responsible for processing and analyzing U.S. wheat, to provide training, technical advice and on-going support. He will also conduct seminars and technical training to increase technical knowledge in the region and generate value to the industry.

“We are confident that Andres has the technical skills and expertise to help our customers obtain the best possible results and value from all six classes of U.S. wheat,” said Galdos.

“I want to thank everyone in the USW Santiago Office for the opportunity to be a part of this recognized organization,” said Saturno. “There are a lot of challenges and opportunities and I’m sure with this great team we are going to provide great value for U.S. wheat customers and U.S. wheat producers.”

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.

Andres Saturno

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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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The Trump Administration Can Prevent the Threat of Wheat Export Losses Under CPTPP

ARLINGTON, Virginia — Implementation of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) without the United States is a time bomb set to demolish more than 60 years of hard work by multiple generations of U.S. farm families to develop a large and loyal market for U.S. wheat in Japan. The U.S. government has the power, however, to defuse this device and avoid an unnecessary and costly disaster.

Today, Japan became the second country to ratify the CPTPP, which could be implemented in early 2019 after six of the 11 countries that signed the agreement have ratified it. This development comes on the same day the United States and China escalated a trade war that has already imposed harm on U.S. wheat growers, potentially compounding the difficult economic conditions further. Canada and Australia, which are major competitors to the United States in the Japanese wheat market, are also parties to the agreement, meaning implementation would put U.S. wheat farmers at a severe disadvantage in our second biggest wheat market.

Once implemented, the agreement calls for incrementally discounting the effective import tariffs that Japanese flour millers pay for imported Australian and Canadian milling wheat from about $150 to about $85 per metric ton (MT). Imported U.S. wheat effective tariffs would remain at about $150 per MT.

Sources within the Japanese milling industry estimate this disadvantage would force them to start looking at alternatives to U.S. wheat and cut average total imports of western white, dark northern spring (DNS) and hard red winter (HRW) wheat by more than half — from about 3.1 million metric tons (MMT) per year to 1.35 MMT per year or less. If nothing changes before the effective tariff schedule is fully implemented, U.S. wheat farmers and the U.S. grain trade will essentially be writing a $500 million check every year to Australian and Canadian farmers.

U.S. Wheat Associates and the National Association of Wheat Growers call on the Trump Administration to end this threat by taking the bold but necessary steps toward joining the CPTPP or engaging in bilateral negotiations. We see no other way to stop a situation that we believe will cut already unprofitable cash wheat prices even further.

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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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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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U.S. Wheat Associates: The Only Threat from Auto Imports is Retaliation from Trading Partners

ARLINGTON, Virginia — In response to a U.S. Department of Commerce Section 232 investigation into auto and auto parts imports, U.S. Wheat Associates (USW) once again expressed concern about using questionable national security arguments as a basis for import restrictions and the potential for retaliation from trading partners.

In comments on the investigation submitted June 22, 2018, USW strongly encouraged the Commerce Department to “stick to serious national security concerns when using Section 232 and avoid making this process even more ridiculous than it has become after the steel and aluminum investigations.”

Before any restrictions on auto and parts imports are taken under Section 232, USW said Commerce “should consider the fallout if other countries follow suit and impose restrictions on U.S. wheat or other products as a result of their own national security concerns, whether real or imagined.”

As a representative of U.S. wheat farm families who rely on export demand to boost their income potential, USW was among the first agricultural organizations to publicly oppose the use of Section 232 to impose tariffs on steel and aluminum imports. Farmers have already been hit hard by tariffs on hundreds of food and agricultural products in retaliation for recent unilateral trade actions and much more is expected soon.

While the reactions of countries to U.S. steel and aluminum protectionism has been negative for farmers, USW said the case of automobiles is much more dangerous because the dollar figures are so much larger.

“Automotive imports in 2017 were about ten times larger than steel imports and much of this came from significant wheat importers like Mexico, Japan, South Korea and the European Union,” USW said in its comments. “The chances that U.S. wheat farmers will face retaliation increases substantially if the final measures reflect the scope of the investigation.”

USW also argues that invalid use of the national security exemption created in Section 232 of the General Agreement on Tariffs and Trade undermines effective global trading rules.

“Whatever surface level plausibility existed for justifying restriction on steel and aluminum imports is entirely absent when it comes to automobiles,” USW stated. “The breathtaking leap of logic required to recommend tariffs on imported automobiles and parts due to their threats to national security suggest that the only plausible reasons for this action are either economic protectionism in violation of our WTO commitments or a negotiating tactic. Use of this statute as a negotiating tactic is an abuse of the authority granted by Congress and economic protection is available through trade remedy laws if the need for protection meets the requirements of the relevant statutes. In either case, the Department of Commerce should find that these imports do not threaten national security.”

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