Page 24 - aruba-today-20170520

Saturday 20 May 2017 BUSINESS
A24

Prospect of NAFTA rewrite gives U.S. farmers a case of jitters

PAUL WISEMAN Trump has also threat-
AP Economics Writer ened to impose tariffs on
WASHINGTON (AP) — A Chinese and Mexican im-
sizable majority of rural ports, thereby raising fears
Americans backed Don- that those trading partners
ald Trump’s presidential would retaliate with their
bid, drawn to his calls to own sanctions.
slash environmental rules, Farmers know they’re fre-
strengthen law enforce- quently the first casualties
ment and replace the fed- of trade wars. Many recall
eral health care law. a 2009 trade rift in which
But many farmers are ner- China responded to U.S.
vous about another plank tire tariffs by imposing tar-
in Trump’s agenda: His iffs on U.S. chicken parts.
vow to overhaul U.S. trade And Mexico slapped tariffs
policy, including his intent on U.S. goods ranging from
announced Thursday to re- ham to onions to Christ-
negotiate the North Ameri- mas trees in 2009 to protest
can Free Trade Agreement a ban on Mexican trucks
with Canada and Mexico. crossing the border.
Trump’s message that The White House declined
NAFTA was a job-killing di- to comment on farmers’
saster had never resonat- In this Tuesday, April 4, 2017, photo, Blake Hurst, a corn and soybean farmer and president of the fears that Trump’s trade
ed much in rural America. Missouri Farm Bureau, center, jokes with his brothers Brooks Hurst, left, and Kevin Hurst, right, on his policy stands to hurt them.
NAFTA had widened ac- farm in Westboro, Mo. But officials say they’ve
cess to Mexican and Ca- Associated Press sought to ease concerns,
nadian markets, boosting by, for example, having
U.S. farm exports and ben- Agriculture Secretary Per-
efiting many farmers. enjoyed a trade surplus tariffs, annual farm exports with a map showing areas due announce a new un-
Farm Country went on red in farm products since at to Mexico have jumped that would be hurt most by dersecretary to oversee
alert last month when it least 1967, government nearly five-fold to about a pullout, overlapped with trade and foreign agricul-
looked as if Trump wasn’t data show. Last year, farm $18 billion. Mexico is the many that voted for Trump. tural affairs.
even going to pursue a exports exceeded imports No. 3 market for U.S. agri- “I tried to demonstrate to Many farmers are still hope-
NAFTA rewrite: White House by $20.5 billion. culture, notably corn, soy- him that in the agricultural ful about the Trump ad-
aides had spread the word “You don’t start off trade beans and pork. market, sometimes words ministration. Some, for ex-
that the president would negotiations ... by picking “The trade agreements like ‘withdraw’ or ‘termi- ample, applaud his plans
simply withdraw from the fights with your trade part- that we’ve had have been nate’ can have a major to slash environmental
pact. ners that are completely very beneficial,” says Ste- impact on markets,” Per- rules that they say inflate
“Mr. President, America’s unnecessary,” says Aaron phen Censky, CEO of the due said in an interview the cost of running a farm.
corn farmers helped elect Lehman, a fifth-generation American Soybean Asso- with The Associated Press. Some also hold out hope
you,” Wesley Spurlock of Iowa farmer who produces ciation. “We need to take “I think the president made that the author of “The Art
the National Corn Grow- corn, soybeans, oats and care not to blow the signifi- a very wise decision for the of the Deal” will negotiate
ers Association warned in hay. cant gains that agriculture benefit of many agricul- ways to improve NAFTA.
a statement. “Withdrawing Many farmers worry that has won.” tural producers across the One such way might in-
from NAFTA would be di- Trump’s policies will jeop- The U.S. has run a surplus country” by choosing to volve Canada. NAFTA let
sastrous for American agri- ardize their exports just as in farm trade with Mexico remain in NAFTA. Canada shield its dairy
culture.” they face weaker crop for 20 of the 23 years since Trump delivered another farmers from foreign com-
Within hours, Trump soft- and livestock prices. NAFTA took effect. Still, the disappointment for U.S. petition behind tariffs and
ened his stance. He “It comes up pretty quickly surpluses with Mexico be- farm groups in January by regulations but left at least
wouldn’t actually dump in conversation,” says Blake came deficits in 2015 and fulfilling a pledge to aban- one exception — an Amer-
NAFTA, he said. He’d first Hurst, a corn and soybean 2016 as global livestock don the Trans-Pacific Part- ican ultra-filtered milk used
try to forge a more advan- farmer in northwestern Mis- and grain prices plummet- nership, which the Obama in cheese. When Cana-
tageous deal with Mexico souri’s Atchison County. ed and shrank the value administration negotiated dian farmers complained
and Canada — a move That county’s voters of American exports, notes with 11 Asia-Pacific coun- about the cheaper im-
that formally began Thurs- backed Trump more than Joseph Glauber of the In- tries. Trump argued that ports, Canada changed
day when his top trade ne- 3-to-1 in the election but ternational Food Policy Re- the pact would cost Amer- its policy and effectively
gotiator, Robert Lighthizer, now feel “it would be bet- search Institute. icans jobs by pitting them priced ultra-filtered Ameri-
informed Congress of the ter if the rhetoric (on trade) Mexico has begun to seek against low-wage Asian can milk out of the market.
administration’s intent to was a little less strident,” alternatives to U.S. food labor. “Canada has made busi-
renegotiate NAFTA. says Hurst, president of the because, as its agriculture But the deal would have ness for our dairy farmers
As a candidate, Trump Missouri Farm Bureau. secretary, Jose Calzada given U.S. farmers broader in Wisconsin and other bor-
defined his “America First” Trump’s main argument Rovirosa, said in March, access to Japan’s notori- der states very difficult,”
stance as a means to fight against NAFTA and other Trump’s remarks on trade ously impregnable market Trump tweeted last month.
unfair foreign competition. pacts was that they ex- “have injected uncertain- and easier entry into fast- “We will not stand for this.
He blamed unjust deals for posed American workers to ty” into the agriculture busi- growing Vietnam. Philip Watch!”
swelling U.S. trade gaps unequal competition with ness. Seng of the U.S. Meat Ex- Some U.S. cattle producers
and stealing factory jobs. low-wage workers in coun- Once word had surfaced port Federation notes that would also like a renegoti-
But NAFTA and other deals tries like Mexico and China. that Trump was considering the U.S. withdrawal from ated NAFTA to give them
have been good for Amer- NAFTA did lead some pulling out of NAFTA, Sonny TPP left Australia with a something the current ver-
ican farmers, who stand American manufacturers Perdue, two days into his competitive advantage sion doesn’t:
to lose if Trump ditches to move factories and jobs job as the president’s ag- because it had already The right to label their prod-
the pact or ignites a trade to Mexico. But since it took riculture secretary, has- negotiated lower tariffs in uct “Made in America.” In
war. The United States has effect in 1994 and eased tened to the White House Japan. 2015, q