CRS Issue Statement on Agricultural Trade and Development (CRS Report for Congress)
| Release Date |
Jan. 25, 2010 |
| Report Number |
IS40253 |
| Authors |
Charles E. Hanrahan, Coordinator, Senior Specialist in Agricultural Policy |
| Source Agency |
Congressional Research Service |
Summary:
The United States is the world's leading commercial exporter and importer of agricultural products. At the same time, the United States is the world's largest provider of food security assistance in the form of U.S. commodities for food aid. The Obama Administration has called for a substantial increase in U.S. agricultural development assistance for food-insecure countries.
Agricultural exports are important both to U.S. farmers and to the U.S. economy. Production from almost a third of harvested acreage is exported, including an estimated 48% of food grain production, almost 20% of feed grains, and about 36% of U.S. oilseeds. Cotton exports amounted to more than 80% of production in 2009. The United States is a net exporter of agricultural products. Agricultural exports in FY2010 are forecast by the U.S. Department of agriculture (USDA) to be $98 billion. With estimated agricultural imports of $77.5 billion, the FY2010 agricultural trade surplus would be $20.5 billion. Exports also generate economic activity in the non-farm economy. According to USDA, each $1 received from agricultural exports stimulated another $1.61 in supporting activities to produce those exports. Recent data show that agricultural exports generate an estimated 841,000 full-time civilian jobs, including 41,000 jobs in the nonfarm sector.
Expanding market opportunities for U.S. farm products through bilateral, regional, and multilateral trade negotiations has been a long-standing aim of U.S. trade policy. The U.S. agricultural sector has, for the most part, looked to trade agreements as a means to increase U.S. farm exports. Bilateral agreements reached with Canada and Mexico (NAFTA), Australia, and a group of Central American countries, among others, have resulted in increased agricultural trade
for all parties involved. U.S. and global agricultural trade has benefited as well from multilateral trade liberalization under World Trade Organization (WTO) auspices. However, some commodity sectors face potentially greater competition under trade liberalization and view trade agreements less favorably. The fate of bilateral agreements negotiated with South Korea, Colombia, and Panama by the previous Administration is uncertain and the future of multilateral trade negotiations in the WTO is a question mark. At the same time, the Obama Administration has notified Congress that the President will enter into negotiations of a regional Asia-Pacific trade agreement, known as the Trans-Pacific Partnership (TPP) Agreement.
