Page 47 - Export or Bust eBook

Little wonder then that many farmers are incredibly worried about the Trump administration’s efforts to
renegotiate the North American Free Trade Agreement (NAFTA) with Canada and Mexico, and
potentially impose steep tariffs on Chinese products.

The top three markets for U.S. agricultural exports are China, Canada, and Mexico, in that
order. Together, these three countries are expected to account for $65.6 billion, or 47 percent of total
U.S. agricultural exports in FY 2017, according to CRS. For some commodities, like soybeans, the
impact of a potential trade battle could be extremely severe.

“China purchases 61 percent of total U.S. soybean exports, and more than 30 percent of overall
U.S. soybean production. In short, trade with China matters and is vital not only to the hundreds
of thousands of U.S. soybean producers but the rural economies and communities that depend on
them,” noted ASA President and Iowa farmer John Heisdorffer.

The value of U.S. soybean exports to China has surged from $414 million in 1996 to roughly $14 billion
in 2017. Potential tariffs would put years of work to expand markets, and the livelihoods of thousands of
U.S. farmers, in jeopardy, ASA noted in recent comments submitted to the U.S. Trade Representative.

While negotiations continue with Mexico and Canada on NAFTA and talks with Chinese officials are
ongoing , some growers are already feeling the pain. Additionally, Chinese customs are ramping up
inspection checks on fresh fruit and pork imports from the U.S.

www.Agri-Pulse.com 45