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ORGANIC TRADE | NAFTA | GROWTH | OrganicHangout.com

Organic Trade

U.S. Organic Growth

We have a long ways to go to compete inter-nationally although much progress has been made in Organics. The coding which is outlined below show U.S. growing exports of Organics to other countries. As stated our exports to Europe is increasing with an rapid growth occurring in the United States. ORGANIC | TRADE | NAFTA | GROWTH

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Top U.S. organic exports (in value) in 2016 were apples, grapes, and lettuce. Although the United States exported organic products to 79 countries. Canada and Mexico accounted for 70 percent of the value of tracked U.S. organic exports in 2016. Japan, Taiwan, and South Korea were also among the United States’ top trade partners for organic products in 2016.

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NAFTA | Impact

The U.S. position towards NAFTA is softening according to recent reports which could increase U.S. exports in Organics. Granted most of the crops would be conventional which have been traditionally the bulk of the exports earlier. Perhaps with the current Organic Demand (see below) in the U.S. will develop a grass roots movement of new entries in the market.

GROWTH | Consumer Demand

Consumer demand for organic foods is expected to continue growing rapidly in the United States and other major markets. The competition for these markets is likely to increase considerably.

  • Growth in organic agricultural production is occurring in both developed and developing countries worldwide. The competition for major consumer markets in developed countries, particularly the United States and Europe, is increasing.
  • In January 2011, the U.S. Department of Commerce added codes for selected organic products to the U.S. trade code system. USDA’s Foreign Agricultural Service (FAS) reports monthly trade statistics on these products in the Global Agricultural Trade System (GATS), (choose “Standard Query,” and then “Organics-Selected” under Product Groups). For organic exports, the number of tracked products expanded from 23 in 2011 to 33 in 2016. For organic imports, tracked products increased from 16 in 2011 to 31 in 2016. Some of the tracked organic commodities—especially imported ones—have more than one variety due to high demand for differentiated goods, as can be seen in the following linked tables.
  • U.S. organic exports that are tracked—mostly fruit and vegetables—reached $548 million in 2016 (see the table on Organic Trade, “exports” tab). Top U.S. organic exports (in value) in 2016 were apples, grapes, and lettuce. Although the United States exported organic products to 79 countries, Canada and Mexico accounted for 70 percent of the value of tracked U.S. organic exports in 2016. Japan, Taiwan, and South Korea were also among the United States’ top trade partners for organic products in 2016.
  • U.S. organic imports that are tracked equaled $1.65 billion in 2016 (see the table on Organic Trade, “imports” tab). Top U.S. organic imports in 2016 included bananas, coffee, and olive oil (all of which the United States does not produce in large quantities), as well as corn and soybeans (to meet growing demand for organic livestock feed). Turkey, Mexico, Italy, Peru, and Ecuador supplied 43 percent of tracked U.S. organic imports. In 2016, 87 countries supplied the tracked organic products to the United States.

ORGANIC TRADE | NAFTA | GROWTH

 ORGANIC TRADE | NAFTA | GROWTH

Farmers Seek Signs That Trump Has Eased Opposition to Nafta

January 07, 2018

When President Trump addresses the U.S. agricultural community Monday, farmers will be looking for signs that a recent push to lobby him in support of the North American Free Trade Agreement has been successful.

WASHINGTON—When President Donald Trump addresses the U.S. agricultural community Monday, farmers will be looking for signs that a recent push to lobby him in support of the North American Free Trade Agreement has been successful.

That effort, which has included Republican senators from farm states offering charts and graphs illustrating the benefits of the trade deal, has left some hopeful that the administration has softened an earlier tough stance on Nafta. Fueling those hopes has been the president’s refraining from harsh anti-NAFTA rhetoric since his last tweet regarding the pact in August.

 ORGANIC TRADE | Doing Everything

“We’re doing everything we can to have our voices heard,” said Sen. Deb Fischer (R., Neb.), a rancher and one of several lawmakers who attended a steak lunch with Mr. Trump in December. Sen. Joni Ernst (R., Iowa) brought a chart showing a negative impact of Mr. Trump’s anti-Nafta messages on hog futures. Last week, Senate Agriculture Committee Chairman Pat Roberts (R., Kan.) led another group to the White House to reinforce the message.

ORGANIC TRADE | NAFTA | GROWTH

White House officials say Mr. Trump has continued to meet with “stakeholders on all sides” on the issue. One official familiar with the strategy said that in staying relatively quiet on NAFTA, the president is giving U.S. negotiators maximum leverage in the talks.

President Donald Trump spoke during a lunch meeting with Republican members of the Senate, including Sen. Joni Ernst of Iowa, left, Sen. Jeff Flake of Arizona and Sen. Deb Fischer of Nebraska, in the White House on Dec. 5, 2017.

Farm-state lawmakers say that in their sessions with him, Mr. Trump has been reassuring about Nafta, which has opened Mexican and Canadian markets to duty-free exports of billions of dollars in U.S. products.

  ORGANIC TRADE | NAFTA | GROWTH

On Monday Mr. Trump is scheduled to lay out his agriculture policies in an address to the American Farm Bureau Federation’s annual convention in Nashville, Tenn. The address and the release of an accompanying government task force report on rural prosperity, administration officials say, will cover a range of challenges facing small communities, including broadband connectivity, health care, and legislation to reauthorize farm programs that expire this year.

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But trade, and NAFTA in particular, is foremost on the farm community’s mind. The U.S. in 2016 sent $16.4 billion in agricultural and food products to Mexico. Canada had $23.4 billion to Canada, according to government figures. Farmers worry that without Nafta, the two U.S. neighbors would have the right to put tariffs on products from the U.S. and could turn to other countries for supplies of soybeans, corn and other farm products.

A senior administration official Friday said the task force report, which will make recommendations to the president, will recognize the need to be “sure that rural American agriculture is very fairly treated and has access to global markets.”

ORGANIC TRADE | NAFTA | GROWTH | TALKS

How that will factor into the NAFTA talks, which resume in Montreal on Jan. 23, is unclear. The negotiations haven’t yet produced any major breakthroughs, and the gap between the U.S. and its North American partners at the negotiating table continues to worry business and farm groups that back Nafta.

“While the president is increasingly listening to the dire concerns of farmers and ag state lawmakers, nobody has a sense of whether he’ll heed their warnings,” said former Democratic Sen. Max Baucus, co-chairman of Farmers for Free Trade, which seeks to preserve existing agreements that lower tariffs on agricultural exports.

The U.S. chief negotiator, trade representative Robert Lighthizer, has complained that Canada and Mexico aren’t working hard enough to reach an agreement with the U.S. He has proposed gutting Nafta’s dispute-resolution systems, requiring high U.S. content in cars traded duty-free and inserting a “sunset clause” that would allow Nafta to expire if all three countries don’t renew it every five years, according to people familiar with the positions.

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 ORGANIC TRADE | Labor Unions

Labor unions and left-leaning consumer groups have supported the tough stance. But business and farm lobbies have continued to lobby the administration by pointing to the benefits Nafta has brought over the last quarter century.

The farm-state lawmakers say they think they have made a difference.

“He said quite bluntly he had thought everyone wanted to get rid of Nafta, and that’s not right,” Ms. Ernst said in an interview.“I can’t speak to what the president intends to do going forward, but I think his perspective has changed a little bit.”

  ORGANIC TRADE | NAFTA | GROWTH

After the December meeting, Mr. Roberts said Mr. Trump reassured him about Nafta’s fate. “Before I could even say, ‘Merry Christmas, Mr. President,’ he looked at me and put his thumb up and said we’re going to be all right on Nafta,” Mr. Roberts said on C-Span last month.

One factor might be the changing sphere of influence around the president on trade.

Some of the Trump aides who were most critical of U.S. trade policy have exited the administration or seen their roles diminished. Economist Peter Navarro has settled into a more limited role leading a small White House trade and manufacturing office, while senior adviser Steve Bannon left the White House and is now a target of Mr. Trump.

ORGANIC TRADE | NAFTA | GROWTH | TALKS

In his last public comments on NAFTA, at a political rally in Florida, Mr. Trump left open the possibility of any outcome. “We’re gonna hopefully keep NAFTA,” he said, then added: “But there’s a chance we won’t. And that’s OK.”

 

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