WASHINGTON, D.C. – Today, Rep. Dan Newhouse (R-WA) joined Reps. Tracey Mann (R-KS), August Pfluger (R-TX), House Minority Leader Kevin McCarthy, and 56 of his colleagues in sending a letter to President Joe Biden urging him to handle the imbalance within the agricultural commerce relationship between the United States and China.
“We write to express our concern regarding our trade relationship with China and urge you to work with U.S. Secretary of Agriculture Thomas J. Vilsack and U.S. Trade Representative Katherine Tai to make the U.S.-China agricultural trade relationship more balanced and reciprocal,” wrote the lawmakers.
They continued, “More than two years ago, on January 15, 2020, the United States and China signed the two-year Phase One trade deal which, among other things, required China to make structural reforms to its trade regime and import $73.9 billion of U.S. agricultural products. As you know, China failed to meet their commitment to the U.S. to purchase additional agricultural goods by nearly $16 billion in 2020 and 2021 combined.”
They concluded, “we urge you to take immediate steps to rectify the unbalanced agricultural trade relationship with China; work towards new enforceable commitments from China; and pursue additional trade deals with other markets amenable to U.S. agricultural goods. Any solution must address the full suite of issues— including market access, administrative licensing, procurement, and localization—in a comprehensive and holistic manner. You must act now for America’s farmers, ranchers, and producers.”
The textual content of the complete letter may be discovered right here and beneath:
Dear President Biden:
We write to specific our concern relating to our commerce relationship with China and urge you to work with U.S. Secretary of Agriculture Thomas J. Vilsack and U.S. Trade Representative Katherine Tai to make the U.S.-China agricultural commerce relationship extra balanced and reciprocal.
More than two years in the past, on January 15, 2020, the United States and China signed the two-year Phase One commerce deal which, amongst different issues, required China to make structural reforms to its commerce regime and import $73.9 billion of U.S. agricultural merchandise. As you understand, China failed to meet their dedication to the U.S. to buy further agricultural items by almost $16 billion in 2020 and 2021 mixed. We are involved that China has not lived up to its Phase One commitments, and that your administration has not sufficiently reported to Congress on China’s compliance, introduced ahead enforcement actions on China shortcomings, nor sought to negotiate new commitments from China, together with on agriculture.
America should vigorously implement its commerce commitments. When requested whether or not the U.S. would implement the Phase One commerce cope with China, Secretary Vilsack said, “Ambassador Tai. . .continues to converse with China about the necessity of living up totally and completely to the Phase One trade agreement, making up that $16 billion deficit over the course of the next several years.” When China agreed to buy $73.9 billion in agricultural items over the course of two years and failed to accomplish that, it violated the phrases of the Phase One settlement. As such, the U.S. ought to absolutely implement the settlement and obtain damages from China for China’s failure to carry out.
America should pursue a brand new commerce settlement with China and search to negotiate various commerce agreements with different nations that may develop U.S. agricultural market entry overseas. While we acknowledge that China imported considerably extra U.S. agricultural merchandise in 2020 and once more in 20213 than some other 12 months in historical past, we additionally acknowledge that the quantity was not as promised, inflation is at a 40-year-high, and fertilizer prices are 4 or 5 occasions increased than this time final 12 months. We are involved that the dearth of enforcement motion will set a detrimental precedent for future commerce negotiations.
It is with these issues in thoughts that we ask in your detailed responses to the next questions:
- How will your administration report to Congress on areas during which China has fallen wanting its obligations below the Phase One commerce deal?
- Did your administration ever use the enforcement mechanism within the Phase One deal to handle China’s violations of the settlement? If not, what are the actions your administration is taking to instantly maintain China accountable?
- Is your administration contemplating negotiations of a brand new absolutely enforceable deal that additional ranges the enjoying subject with China to guarantee China continues to buy and import American agricultural items?
- In September 2021, Secretary Vilsack talked about that you just had been within the closing phases of vetting and nominating a U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs. When do you propose to make your closing nomination for this place?
Again, we urge you to take quick steps to rectify the unbalanced agricultural commerce relationship with China; work in the direction of new enforceable commitments from China; and pursue further commerce offers with different markets amenable to U.S. agricultural items. Any answer should handle the complete suite of points— together with market entry, administrative licensing, procurement, and localization—in a complete and holistic method. You should act now for America’s farmers, ranchers, and producers.
We look ahead to your well timed reply.