United States Wins Dispute Finding China’s Administration of Grain Tariff-Rate Quotas Breaches WTO Commitments

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by: U.S. Department of Agriculture

Washington, D.C. - April 22, 2019 - (The Ponder News) -- U.S. Trade Representative Robert Lighthizer and Secretary of Agriculture Sonny Perdue announced today that a World Trade Organization (WTO) dispute settlement panel found that China has administered its tariff-rate quotas (TRQs) for wheat, corn, and rice inconsistently with its WTO commitments. Contrary to those commitments, China’s TRQ administration is not transparent, predictable, or fair, and it ultimately inhibits TRQs from filling, denying U.S. farmers access to China’s market for grain.

This panel report is the second significant victory for U.S. agriculture this year, and, together with the victory against China’s excessive domestic support for grains, will help American farmers compete on a more level playing field.

“This second important victory for the United States further demonstrates that President Trump will take all steps necessary to enforce trade rules and to ensure free and fair trade for U.S. farmers. The Administration will continue to press China to promptly come into compliance with its WTO obligations,” said Ambassador Lighthizer.

China’s grain TRQs have annually underfilled. USDA estimates that if China’s TRQs had been fully used, it would have imported as much as $3.5 billion worth of corn, wheat and rice in 2015 alone.

“Making sure our trading partners play by the rules is vital to providing our farmers the opportunity to export high-quality, American-grown products to the world,” said Secretary Perdue. “Today’s announcement is another victory for American farmers and fairness in the global trade system. We will use every tool available to gain meaningful market access opportunities for U.S. grains and other agricultural products.”

Background:
Upon accession to the WTO, China made commitments specific to its administration of TRQs, including the commitment to administer its TRQs in a transparent, predictable, and fair basis, using clearly specified administrative procedures and requirements that do not inhibit the filling of each TRQ. In August 2017, the United States requested that the WTO establish a dispute settlement panel to consider whether China administers its TRQs for long-grain rice, short- and medium-grain rice, wheat, and corn in a manner inconsistent with its WTO commitments.

Today’s panel report agrees with the United States that China administers its TRQs in a manner inconsistent with its Accession Protocol obligations, through its eligibility criteria, allocation and reallocation procedures, public comment process, and processing restrictions. In addition, China allocates a significant portion of each TRQ to a designated state-trading enterprise (STE) and does not subject the STE to the same rules applied to non-state trading enterprises applying for and importing grains under the TRQs. Each finding individually established that China’s TRQ measures are inconsistent with its obligations.

Compliance with WTO rules will lead to market-oriented TRQ administration and improved access for U.S. and other exporters, overall creating a more level playing field.

Read more about the U.S. challenge, including additional details about how China’s TRQ administration breaches its WTO commitments.

Perdue Calls on Congress to Fix Forest Service Fire Funding Problem

Source: U.S. Department of Agriculture

Washington, D.C. - September 8, 2017 (The Ponder News) -- U.S. Secretary of Agriculture Sonny Perdue today called on Congress to address the way the U.S. Forest Service is funded so that the agency is not routinely borrowing money from prevention programs to combat ongoing wildfires. Perdue argued that taking funds from prevention efforts only leaves behind more fuel in the forests for future fires to burn, exacerbating the situation. Perdue made his remarks during a ceremonial swearing in of new Forest Service Chief Tony Tooke at the Department of Agriculture.

Currently, the fire suppression portion of the Forest Service budget is funded at a rolling ten-year average of appropriations, while the overall Forest Service budget has remained relatively flat. Because the fire seasons are longer and conditions are worse, the ten-year rolling fire suppression budget average keeps rising, chewing up a greater percentage of the total Forest Service budget each year. The agency has had to borrow from prevention programs to cover fire suppression costs. Perdue said he would prefer that Congress treat major fires the same as other disasters and be covered by emergency funds so that prevention programs are not raided.



Perdue’s verbatim comments are as follows:

“I’ve had serious concerns about an issue. And I want to be very clear about it. You can have the right leadership. You can have the right people. I believe we have the right leadership. I believe we have the right people. I believe that we have the right processes and the right procedures of attacking and fighting fires. But if you don’t have the resources and the means of dependable funding, that’s an issue.

“Every year, when we have to take, in the Forest Service, and hoard our appropriated dollars in order to have money to fight the fires, where we know they are going to be insufficient, that’s wrong. We need with all of our heart and strength and mind, Tony, to appeal to the appropriators in Congress, and the law writers, to fix the fire borrowing problem once and for all.

[Applause]

“As good as you are, and as well as you know the Forest Service, there’s no way you can manage the Forest Service, not knowing what you’re going to have to spend. That is not the way appropriations should work. I’ve communicated that to OMB, I’m communicating that to members of Congress, I’ve communicated that to the president. And by golly, we hope we’re going to get something done about it this year. I think the momentum is there, along with other disasters.

“I met yesterday with [Office of Management and Budget] Director Mulvaney. We described the need and the issue of a permanent fix and I think we’re along our way to get there. Tony’s going to have to meet with members of Congress and to persuade them that’s the ultimate solution so we can manage ahead of time.

“I’ve told people the analogy – it’s like eating your seed corn. You know, when you have to spend so much fighting fires, you can’t spend the money that’s appropriated to prevent forest fires. You know, Smokey wants us to prevent forest fires, don’t you, Smokey?

“You know the facts. Our budget has moved from 15 percent of fire suppression to over half – 55 percent-plus. It may be more than that this year, in having to fight fires. And there’s no way we can do the kind of forest management and the prescribed burning and harvesting and insect control, all those kinds of things that diminish fires.

“Fires will always be with us. But when we leave a fuel load out there because we have not been able to get to it because of a lack of funding, or dependable funding, we’re asking for trouble. We’re asking for disasters, year in and year out. And that’s what we hope to get fixed.

“I want you all to know that I’m fighting hard for that. Tony Tooke’s going to fight hard for that. This whole department at USDA is going to fight hard to communicate to Congress and the administration that we need a permanent fire funding and stop this fire borrowing once and for all. So, thank you all for understanding that and understanding where we need to devote our resources.”

USDA Helps Hurricane Harvey Evacuees to Obtain Expedited Nutrition Assistance

Source: U.S. Department of Agriculture (USDA)

Washington, D.C. - September 4, 2017 (The Ponder News) -- USDA’s Food and Nutrition Service has issued special procedures that give all states flexibility in providing expedited Supplemental Nutrition Assistance Program (SNAP) benefits to families who have evacuated their homes and moved outside the State of Texas as a result of Hurricane Harvey.

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Agriculture Secretary Sonny Perdue said USDA is offering all SNAP state agencies nationwide the choice of using the program’s expedited service provisions or offering evacuees two months of disaster benefits using streamlined program procedures under a special Evacuee Policy designed in response to Hurricane Harvey. These efforts ensure that people who have traveled outside Texas to safer ground as a result of the disaster get the vital nutrition they need.

“Many people have taken extraordinary measures to reach safety as a result of this historic storm, even traveling to distant states, and we’re working to make sure that paperwork and procedure don’t stand in the way of getting folks access to the food they need to feed their families,” Perdue said, emphasizing that hurricane relief is a top priority for President Trump.

The Evacuee Policy applies to anyone who during Hurricane Harvey resided in a county that received a Presidential disaster declaration for Individual Assistance, who did not receive SNAP benefits in August 2017, and who evacuated to another state that chooses to apply the policy. Eligible households will receive two months of SNAP benefits on an electronic benefits transfer (EBT) card.

Households that received SNAP in August 2017 may use remaining benefits on their EBT card in any state. They may also use September benefits and August replacement benefits that the State of Texas has already issued. In the coming weeks, these households may also receive supplemental benefits, Perdue said.

The special Evacuee Policy issued Friday is the latest in an ongoing series of USDA actions taken to help Texans cope with the storm and its aftermath that also include a waiver to allow all disaster-affected schools to provide meals to all students at no charge and be reimbursed at the free reimbursement rate through September 30.

In addition, local disaster organizations, such as the American Red Cross, Salvation Army, and Southern Baptist Men continue to utilize USDA Foods to serve hot meals in congregate shelters. Individuals seeking more information about this and other available aid should dial 2-1-1 or 1-(877) 541-7905. For more information about Texas SNAP, visit YourTexasBenefits.com .

USDA's Food and Nutrition Service administers 15 nutrition assistance programs, including the National School Lunch and School Breakfast programs, the Child and Adult Care Food Program, the Summer Food Service Program, the Special Supplemental Nutrition Program for Women, Infants and Children , and the Supplemental Nutrition Assistance Program, which together comprise America's nutrition safety net.