USDA’SFOREIGN AGRICULTRAL SERVICE

U.S. Agriculture: Trade Policy & Trade Barriers

AGRICULTURAL TRADE POLICY– FAS’ Role in USDA – International Arm

• Trade (OASA)• Development (OCBD)• Foreign Service (OFSO/Overseas)• Marketing (OTP)• Analysis (OGA)

– FAS DC Offices

• Coordinate Ag Trade Policy for USDA• Work with Interagency via USTR (Ag Affairs & other offices, TPSC)• Coordinates USDA role in disputes

– FAS Overseas Offices• Primary contact with local governments• On-the-ground intel • Reporting

AGRICULTURAL TRADE BARRIERS

Traditional Trade Barriers – Common Types:• Tariff-based (bindings, etc)• General GATT Principles (National Treatment, MFN,

etc.)• Illegal subsidies• Domestic purchasing• TBT/Technical Barriers to Trade (labeling, standards,

etc.)

AGRICULTURAL TRADE BARRIERS

Ag-Specific Trade Barriers:• WTO Ag Agreement

– Ag Domestic Support Levels – subsidy commitments– Export Subsidies (market distorting)– Quantitative Restrictions (TRQs and TRQ administration

issues)

AGRICULTURAL TRADE BARRIERS

WTO SPS Agreement– What SPS Measures are– Measures must be based on international standards from

OIE (World Org for Animal Health), IPPC (Int’l Plant Protection Convention) or Codex, OR

– Measures must be based on sound science, least trade restrictive necessary for member to achieve its appropriate level of protection

– Examples: BSE, Biotech, Avian Influenza, etc

AGRICULTURAL TRADE BARRIERS

How FAS Addresses Trade Barriers (Least to Most Intensive Approaches)– Technical Level (regulatory agencies – APHIS, FSIS,

AMS, etc.)– FAS Embassy/attaché interacts with local government

– informal or formal (demarche)– DC Political level – letter, phone call, meeting– Jointly with USTR –

• WTO/FTA committees (Agriculture, SPS, TBT)• Bilateral Arrangements, e.g., CCAs, TIFAs• Dispute Settlement – VERY uncommon, last resort

USDA: FAS

How to Contact FAS: www.fas.usda.gov

Email: elle.o’flaherty@fas.usda.gov