USA wants to diversify agri-exports but no treaty with EU yet

The United States needs to diversify its agricultural exports across more countries and be less dependent on one large customer, China, and a few other major buyers. However, a new trade agreement with the European Union is not expected in the short term.

That was said by US Secretary Tom Vilsack ahead of his first meeting with the Agriculture Committee of the European Parliament. On Monday, Vilsack will discuss the agricultural components of a future US-European trade deal via videoconference with the AGRI committee.

Expansion of trade is now possible as the two economic blocs recently appear to be resolving their long-standing dispute over subsidies to their aircraft industries at the WTO. This coincides with the announcement from the new US President Biden that he wants a major revision of the global economic order.

Vilsack called expansion of trade with Europe in the near term unlikely “until the EU is willing to negotiate the sensitive and difficult issues they have on agriculture,” he said. He referred, among other things, to the protection of national products through geographical indications.

Washington also speaks of a European blockade against genetically modified crops and against the use of growth-promoting medicines in livestock. According to Vilsack, these issues are only part of ‘a long list’ of disputes between the US and the EU.

In Brussels, Vilsack’s listing is not so much seen as a reluctant or reticent American stance, but more as agenda-setting and an opening bid for the upcoming ‘US-EU agri-talks’.

On behalf of the US, negotiations on comprehensive trade agreements are in the hands of trade envoy (USTR: US Trade Representative) Katherine Tai. She has already made contact with the European Commission. Biden has already expressed that he wants to cooperate more with the EU to curb the rising Chinese hegemony.

More than a third (36%) of US agricultural revenue comes from exports. Vilsack did not go into details, but China, Canada, Mexico, and Japan account for more than half of US agricultural exports. The EU currently accounts for 18 percent of American trade in food and agricultural products.