thumbnail

While achieving progress in multilateral trade negotiations among World Trade Organization (WTO) members is often frustrating, USW sees some steps in the right direction in the recent agreement at the WTO Nairobi Ministerial meeting held in mid-December — despite some setbacks.

USW is particularly pleased to see the elimination of export subsidies, which rank high among the most trade-distorting forms of support. The agreement immediately eliminates such subsidies for developed countries and calls for a phase-out for developing countries. Though the world’s largest traditional user of agricultural export subsidies – the European Union – has moved away from the subsidies, agreeing to eliminate them is no small matter.

USW welcomes the recognition in Nairobi that the United States can keep offering food aid and development programs without change, which underpins this country’s leadership in the world. Wheat produced by U.S. farmers is a cornerstone grain for food aid that is affordable, nutritious and fits monetization projects that encourage in-country development.

The Nairobi agreement also addressed export credit and financing rules that reflect reforms the United States has already made. USW believes there should be no further restrictions on the GSM-102 program, which is a reliable, practical financial tool used by several U.S. wheat importing countries.

Despite these gains, USW is disappointed that the Ministerial reauthorized the use of transportation, marketing and processing subsidies for agricultural products for developing countries. This exception could provide cover to bad actors who have violated past agreements to the detriment of producers around the world. USW will continue working with the Office of the U.S. Trade Representative (USTR) to ensure developing country members do not abuse this exception.

The Ministerial reflected differing views on future WTO negotiation priorities. At least the agreement recognizes that work would continue on Doha’s remaining issues in agricultural trade. This includes public stockholding programs, which India uses to subsidize its farmers, and a “special safeguard mechanism,” which would allow countries to “snap-back” tariffs on products in the face of rising imports. The continuation of these negotiations is especially concerning given some countries’ insistence on using these negotiations to roll back progress at the WTO.

USW congratulates and thanks our negotiators at USTR for their hard work. We look forward to sharing the U.S. wheat farmer’s voice in future negotiations. We must also ensure that WTO members hold firm on past agreements, allow no more backpedaling on domestic subsidies and return their focus to the original goal: liberalizing trade policies to promote economic growth for all participants.

By Dalton Henry, USW Director of Policy

thumbnail

Each year the United States exports, on average, 25 to 35 million metric tons (MMT) of wheat, which accounts for roughly 50 percent of the annual crop. This makes the voice of overseas customers important to wheat research. To demonstrate that importance, four wheat breeders will travel with U.S. Wheat Associates (USW) to Asia, April 18 to 26, 2015, on a Wheat Quality Improvement Team (WQIT).

The team will visit with buyers and end-users in Japan, Korea and Thailand to listen and exchange ideas. Their primary goal will be to gather input on wheat quality from key customers to inform their own research and to share what they learn with other U.S. wheat breeders upon their return. They will also share the successful efforts of the U.S. wheat industry to improve the quality of newly released varieties.

“It is vital that we actively listen to and respect the needs of our overseas customers,” said USW Vice President and West Coast Office Director Steve Wirsching, who will lead the team. “The impact breeders have on the industry and the livelihood of farmers is huge. Ultimately, if a variety offers higher yield potential but does not have strong milling or baking qualities that domestic and overseas customers need, farmers will feel that impact.”

This is the fourth WQIT led by USW. In 2004, a similar trip was made to Asia, followed by Latin America in 2009, and Europe and North Africa in 2010. State commissions in Oregon, Washington, North Dakota and Minnesota identified and sponsored top wheat breeders from their land grant universities to join this team.

Dr. Arron H. Carter leads the winter wheat breeding and genetics program at Washington State University where his research focuses on breeding improved wheat varieties for cropping systems in Washington state that incorporate diverse rotations and environments.

Dr. Michael Flowers is an assistant professor and extension cereals specialist at Oregon State University where his research areas include variety trials, nitrogen management in hard wheat and management practices for new Oregon winter wheat varieties.

Dr. Mohamed Mergoum represents North Dakota State University as the Richard C. Frohberg Spring Wheat Breeding/Genetics Endowed Professor. His program’s main objectives are to develop modern and improved cultivars adapted to the spring wheat region and generate wheat germplasm with valuable economic traits required in cultivar development.

Dr. James Anderson is a professor in wheat breeding and genetics at the University of Minnesota where the program he leads researches genetic investigations of complexly inherited traits, including disease resistance and grain quality, and incorporating disease and pest resistance into new cultivars using marker-assisted selection.

The WQIT is a part of a larger USW effort to address the quality of exported wheat and the needs of importing countries. It is a logical next step to a 17-year-old program called the “Overseas Variety Analysis” or OVA program. Through OVA, USW cooperates with millers and bakers to compare the performance of flour from newly or soon-to-be released U.S. wheat varieties to the local country’s standards. Results — both good and not-so-good — are shared with breeders and with state wheat commissions who develop recommended variety lists for wheat farmers. USW currently works with 22 OVA cooperators around the world. During the upcoming trip, the team will participate in an OVA workshop at the UFM Baking School in Bangkok, Thailand, to hear directly from several Asian cooperators.

USW will post photos and other information from the 2015 WQIT on its Facebook page at www.facebook.com/uswheat.

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 17 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 classes of U.S. wheat.